A. Preparation of Input.

American Institute of Architects - Application and Certificate for Payment

AIA Document G702 - G703

These forms follow a very strict outline and procedure, which has a set of Instructions
that accompany each official document. If you are NOT FAMILIAR with these rules,
review them BEFORE attempting to use this program to produce a billing.

Any deviation from established practices may cause your AIA Billing to be REJECTED
and returned for revision. Needless to say, this can delay considerably your receipt of
payment.

This program has been in use for over 20 years and has produced many thousands of
accepted billings. Careful use of this program will produce accurate billings very quickly,
however, your entry data MUST be accurate, or your billing will be rejected for that reason.

B. Set up NEW JOB.

There are two parts to consider in setting up a New Job; Information that pertains to the Job
AS A WHOLE (Cover Sheet Items) and Pay Items (Line Items). Several factors need to be
known before Job Set-up:

                         How will RETAINAGE be handled?

                         Is this a CONTRACT or COST PLUS A FIXED FEE?

                         How will Completion be reported? (Percent Complete or Work In Place $'s)

                         Will you be requesting Payment for STORED MATERIAL?

Use AIA Maintenance to Set-up the New Job. Enter Job Master Information, then for each
Line Item enter the DESCRIPTION and SCHEDULED VALUE (usually specified in Contract).

C. Changes to EXISTING JOB.

Changes are usually made by entering CHANGE ORDERS to the Contract. Use AIA
Maintenance to CHANGE AN EXISTING JOB by adding Change Order Line Items.

D. Enter APPLICATION VALUES.

For ease of entry of NEW APPLICATION VALUES use the AIA Billing PRINT REQUEST SHEET
Feature. Here will be printed the PAYMENT STATUS of all Line Items on the Billing, PLUS
BLANK SPACES in Columns for CURRENT PERCENT COMPLETE, NEW WORK IN PLACE
DOLLARS and NEW STORED MATERIAL. Field Management can fill in the numbers for entry
in the New Application for Payment.

Application Values can be entered either as PERCENT COMPLETE (of TOTAL Scheduled Value)
or as CURRENTLY COMPLETED WORK IN PLACE DOLLARS.

STORED MATERIAL is entered as TOTAL STORED MATERIAL ON SITE. As Stored Material
is INCORPORATED INTO THE JOB it is MOVED from the STORED MATERIAL COLUMN to
the WORK IN PLACE DOLLARS Column.

Use AIA BILLING to Enter Application Values. Changes to RETAINAGE Percentages or Lock
at a Fixed Value can be entered at the start of this program. Line Items can be SWITCHED from
WORK IN PLACE $ entry to PERCENTAGE and back. This makes it easy to handle STORED
MATERIAL, which must be INCORPORATED INTO THE JOB as Work in Place $'s.

E. Print BILLINGS.

After entering Application Values you will have an opportunity to PRINT the CERTIFICATION
and APPLICATION FOR PAYMENT Forms. There is an option to Print to the Screen for a
Verification Review, but you MUST Print to the PRINTER in order to get an UPDATE OPTION.

Prior to UPDATE you can return to the Application for Payment program, make MODIFICATIONS
and REPRINT as required. When you get a FINAL BILLING for SUBMISSION printed, DO NOT
take the UPDATE OPTION yet.

F. UPDATE Decision.

Normally the UPDATE OPTION is not taken until the Billing has been ACCEPTED and PAYMENT
ISSUED. Then another FINAL BILLING Print out is done, the UPDATE OPTION IS TAKEN and
the AIA BILLING and ACCOUNTS RECEIVABLE Files are Updated.

In SOME CASES it may be desired to do a Final Billing WITH UPDATE, prior to Acceptance.
(for purposes of including a Billing on the Financial Statements). In this case, if the Billing
is returned for Modification, you must follow the REBILLING procedure below.

G. REBILLING.

You can REBILL the LAST UPDATED AIA BILLING, by making modifications to it, then
printing and, optionally, re-updating it. It will take care of adjusting the AIA BILLING RECORDS,
and will create a NEW A/R INVOICE INPUT Record. YOU MUST ENTER A CREDIT INVOICE
through Accounts Receivable to BACK OUT the ORIGINAL AIA BILLING INVOICE in A/R.

If there is an AIA BILLING for this Job that is NOT UPDATED, you should review the entries,
paying special attention to Line Items that were modified in the REBILLING.

H. STORED MATERIAL

NO SUBJECT IN AIA BILLING CAUSES MORE CONFUSION THAN STORED MATERIAL!

Stored Material is Contract Materials that are put on the Job Site by the Contractor for later
installation. Since the Materials are in the possession of the Owner, the Contractor expects
to be paid for them, and thus, bills for the Materials under the STORED MATERIAL Column.

According to the rules for Billing under FORM G702 - G703, Stored Materials are to SHOW on
the Application & Certification For Payment UNTIL they are incorporated into the Job (removed
from Stored Material and put into Work in Place $'s)

Of course, the Owner does NOT EXPECT TO PAY FOR THE STORED MATERIALS AGAIN, so
for Payment Purposes, ONLY NET CHANGES IN STORED MATERIAL ARE PAID.

                                                                                         Stored Material     WIP $'s                   PAY AMT>
Billing #1-                Wire & Cable put onto Job Site                1000                                                     1000

Billing #2-  1/2 materials installed ($200 Lbr)     500                                700                       200

Billing #3-   Rest of material instld ($300 Lbr)         0                                800                       300

(This Line Item had a Scheduled Value of $1500,
$1000 for Material and $500 for Labor).

On Billing #1 we were paid for the $1,000 in materials that were delivered to the Job Site.

Note on Billing #2 that Stored Material was REDUCED by $500 causing a NET CHANGE in
Stored Material of MINUS $500 (thus our pay amount was REDUCED by $500).

This was OFFSET by the ADDING of $500 to Work in Place $'s (Materials were INCORPORATED
INTO the Job). So the NET EFFECT on the Pay Amount of these two Transactions is ZERO.

What we DID get paid for was the $200 in Installation Labor, which was ADDED to the $500
in Stored Material Incorporated, for a total of $700 NET WORK IN PLACE $'s

The LAST BILLING follows the SAME PRINCIPLE entirely, and that completes the Billing
for that Work Item.