How does the pay application process work on a commercial project?
Last reviewed July 5, 2026
The pay application process involves the contractor submitting a request for payment based on completed work. The GC reviews it, verifies the work done, and then forwards it to the owner for approval. Once approved, the payment is processed, often with retainage held until project completion.
Key points
- Contractor submits pay app for completed work.
- GC reviews and verifies before sending to owner.
- Owner approval leads to payment processing, often with retainage.
Typically, the contractor fills out a progress billing form that details the work completed to date, materials on site, and any previous payments. The GC checks the application against the contract terms and project progress before passing it along to the owner, who has the final say. Retainage is often a percentage withheld until the project is fully completed and accepted.
How Alloovium helps
Alloovium tracks pay app deadlines and obligations, making sure you stay on top of the payment process.
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General information for US construction professionals — not legal advice. Lien deadlines, retainage caps and notice rules vary by state; verify with the state statute or a construction attorney.