Progress payment requests: what a pay application needs

A pay app that gets kicked back for missing backup can push your money out a full billing cycle. The federal fixed-price construction payment clause is a good checklist for what owners and GCs expect, even on private work, because many private pay-app forms ask for the same information.

What the request has to include

Under FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, the government makes progress payments "monthly as the work proceeds, or at more frequent intervals," on estimates of work accomplished that meets the contract's quality standards. The contractor's request must include:

1. An itemization of the amounts requested, tied to the elements of work in the contract (in practice, your schedule of values).
2. A listing of the amount included for work performed by each subcontractor.
3. A listing of the total amount of each subcontract.
4. A listing of the amounts previously paid to each subcontractor.
5. Any additional supporting data the contracting officer requires.

Stored materials

The contracting officer may count material delivered to the site and preparatory work. Material stored somewhere other than the site can be counted only if the contract specifically allows it and the contractor shows it has acquired title and that the material will be used on the job. If you plan to bill for off-site stored materials (for example, a large drywall or framing buyout), check the contract first and be ready with invoices, proof of title and insurance on the storage location.

The certification

Each federal request needs a signed certification that, to the best of the contractor's knowledge: the amounts are only for work done according to the contract; subcontractors and suppliers have been paid from previous payments and will be paid on time from this one; the request doesn't include amounts the prime plans to withhold from a sub; and the certification isn't final acceptance of a sub's work. If you later find you billed for nonconforming work, you must notify the contracting officer and you owe interest on the unearned amount until it's corrected or deducted.

Retainage and final payment

• Retainage: if progress is satisfactory, payment is made in full. If not, up to 10 percent may be retained until progress is satisfactory. At substantial completion, the government keeps only what it considers adequate and releases the rest (more in retainage explained).
• Bond premiums: on request, the government reimburses performance and payment bond premiums once you show proof of payment, and retainage doesn't apply to that portion.
• Final payment comes after completion and acceptance of all work, a properly executed voucher and a release of claims. Any claims you want to keep must be specifically excepted, in stated amounts, from the release. Don't sign a release without listing open change orders and claims.

Pay-app checklist

• Schedule of values matches the contract and approved change orders.
• Percent complete is defensible line by line (photos and daily reports help).
• Sub and supplier listings are complete; lien waivers attached if required.
• Stored materials backed by invoices and, for off-site storage, proof of title.
• Certification signed and dated.
• Submitted on the cutoff date; on federal work the clock is 14 days from receipt of a proper request (see prompt payment for subcontractors).

This is general information, not legal advice. Federal clauses are used here as a reference model; private and state contracts have their own terms. Have a construction attorney review anything you are unsure about.

Published October 29, 2026. We do not use affiliate links on this page; see our Affiliate Disclosure.