Why a checklist matters
Construction draw review is a high-stakes process with many moving parts. Lenders funding draws and owner's representatives certifying payments both carry liability for amounts they approve. A systematic checklist is the difference between a 45-minute forensic review and a 10-minute rubber stamp that misses $80,000 in overbilling.
This checklist covers the eight categories most often missed in manual review, organized by section of the pay application. Use it for every G702/G703 draw, regardless of project size.
1. Contract and Cover Sheet (G702)
Project name, contract number, and pay app number match the contract
Application date and period through date are consistent
Scheduled value on the cover matches the original contract sum plus approved change orders
Previously certified total matches the prior pay app's certified amount
Retainage percentage matches the contract terms
G702 signature is present and dated correctly
2. Schedule of Values (G703) Math Verification
Column A (Scheduled Value) sums to the contract sum on the cover sheet
Column G (This Period) = (Column D × Column F) + Column E − Column C for each line
Column H (Materials Presently Stored) is zero or substantiated with documentation
Column I (Total Completed + Stored) = Column G + Column H + Column C
Column J (% Complete) = Column I ÷ Column A for each line
Column K (Balance to Finish) = Column A − Column I for each line
Column L (Retainage) = Retainage % × Column I for each line
Total retainage row equals sum of all line retainage amounts
3. Retainage Verification
Retainage percentage matches the contract (typically 5% or 10%)
Retainage reduction threshold hasn't been applied prematurely
Any reduced retainage line items have reached the contractual completion threshold
Retainage is calculated on stored materials only if the contract allows it
No retainage release has occurred without substantial completion documentation
4. Stored Materials
All stored materials claims have supporting documentation (AIA G706A or equivalent)
Delivery receipts or invoices are present for claimed materials
Materials are insured and stored in a bonded location or on-site
Stored materials amounts are reasonable relative to the scheduled value of the line
Materials won't be incorporated before the next pay app (not already billed as complete)
5. Front-Loading and Completion Percentages
Mobilization and general conditions aren't claimed at 100% before work begins
No line item shows 100% complete that hasn't been verified in the field
Early pay app line items (sitework, excavation) don't show disproportionately high completion
Round-number completion percentages (25%, 50%, 75%) are supported by field verification
Completion percentages are consistent with site inspection or inspector's report
6. Construction Sequencing Logic
Interior finishes aren't at advanced completion while framing or MEP rough-in is still early
Mechanical and electrical completion percentages are consistent with each other
Foundation line isn't at low completion while framing is substantially complete
Roofing isn't more complete than the structural systems it depends on
Any sequencing anomalies have a documented explanation
7. Change Orders
All executed change orders are reflected in the scheduled value total
No change order scope appears to be double-billed in base contract line items
Pending change orders are noted but not included in certified amount
Change order line items have their own rows, not folded into base contract lines
8. Lien Waivers and Documentation
Conditional lien waiver from GC for the amount being certified
Subcontractor lien waivers for the prior pay period (if required by contract)
Any required consent of surety is present
Special inspection reports or building department approvals are current
Certificate of insurance is current and covers required amounts
How long should a draw review take?
A thorough manual review using a checklist like this takes 45–90 minutes for a 20-line schedule of values, depending on the complexity of the stored materials claims and the quality of documentation provided. On a project with 40+ line items or significant stored materials, budget 90–120 minutes.
In practice, most reviewers spend 10–20 minutes and skip sections 2, 5, and 6 — the math verification, front-loading check, and sequencing logic. Those are also the three most expensive omissions.
45–90 min
Thorough manual review
10–20 min
Average reviewer spends
< 60 seconds
AI audit (XOPON)
What an AI audit catches that a checklist misses
A checklist tells you what to check. It doesn't do the math. The retainage verification section above requires computing the correct retainage for every line item and comparing it to what was submitted. On a 30-line schedule of values, that's 30 independent calculations — each one a potential transcription error.
The construction sequencing section requires knowledge of typical MEP dependency order, which most reviewers have in their head but can't systematically apply under deadline pressure. A reviewer who knows that electrical rough-in can't be 80% when mechanical is at 40% still needs to catch it on a 35-line schedule with a 15-minute review window.
AI-based review does the arithmetic on every line, applies sequencing logic across all related trades simultaneously, and flags anomalies with specific dollar amounts — in under 60 seconds. Use this checklist for items that require human judgment (lien waivers, field verification, documentation review). Use AI for the math and pattern detection.
Automate sections 2, 5, and 6
The three most frequently missed checklist sections — math verification, front-loading, and sequencing logic — are exactly what XOPON audits automatically. Paste your G703 and get a full forensic report in 60 seconds.