Cheat sheet on reading AIA progress bills

posted in: Bartley Corp BLOG | 0

I’ve grown to love and understand AIA billing but I admit it took some time to fully understand. This quick guide can get you into the comfort zone and start having a more satisfying relationship with a busy looking form created by The American Institute of Architects. Plus I couldn’t find an article that explains the basics of AIA billing in fun simple words.

 

Question: What the heck is AIA Billing and why do it?

Answer: AIA billing can clearly show you the work completed for a particular month, work that has already been completed and the remaining work to be done. This uniform document helps owners, contractors, subcontractors, banks and anyone involved in reviewing / approving a bill usually related to construction.

 

You just received an AIA bill – don’t freak out, just follow these tips to understand the cover page

  • All you need to read is Line 8 labeled Current Payment Due

Honestly you can skip the rest if you simply create an Accounts Payable invoice for the amount on Line 8 since this is the payment due for this individual progress billing. Note: You can trust this step only if you have a reliable subcontractor like Bartley Corp using the form correctly out of their Construction Accounting Software.

  • The Original Contract Sum on Line 1 should not change

As long as Line 1 matches the amount from the original contract you are good. Move on.

  • Adds / subtracts to contract work should be summed up in Line 2 Net Change by Change Orders

Hopefully this stays zero (hurray) unless you needed to add or subtract work (boo).

  • Payments billed are summed up in Line 7 Less Previous Certificates for Payment

This should match what you have paid up until this particular billing.

 

Crave more? Yes read on, otherwise I think you can get by and I’ll send you a diploma

  • Remaining work that has not been completed is on Line 9 Balance to Finish

The total of the contract and change order work left to be completed is found on Line 9.

  • Be a friend and don’t require Retainage

If you require retainage, you’ll get pushback from subcontractors and make this more difficult. Line 5 Retainage shows the percentage for the job and totals the amount taken out through the current billing. It will affect Lines 5-9 but should not alter numbers on Lines 1-4.

  • Pages 2+ show you the detailed line items

Here you’ll see a Description of the line item with a column for Schedule Value, Completed This Period and the Balance.

 

Don’t be afraid of AIA. Embrace the clarity and simplicity.

 

One of your many friends at Bartley Corp,

Andy Bartley

Related Posts

  • Company Foundation Robert "Buck" Bartley, his late wife Marcia and brother Tom formed The Bartley Corporation in 1970 with the help of a friendly backer, a station wagon, and a good idea. The Bartley Corporation helped introduce residential concrete foundation construction to the Mid-Atlantic region, and today the multi-million dollar…
    Tags: bartley, work
  • Beards of Bartley Corp 2016 Introducing Mr. March: Andy Bartley Primary Responsibility: Business / Administrative Side Years at Bartley Corp: 7 Years Each month in 2016, Bartley Corp will be showing off a different employee’s beard that was selected in our 2016 Beards of Bartley Corp calendar. If you would…
    Tags: bartley, corp
  • Beards of Bartley Corp 2016 Introducing Mr. July: Buck Bartley Primary Responsibility: Founder, Chairman of the Board Years at Bartley Corp: 46 Years Each month in 2016, Bartley Corp will be showing off a different employee’s beard that was selected in our 2016 Beards of Bartley Corp calendar. If you…
    Tags: bartley, corp
  • On Saturday, July 25th, the Bartley Corporation proudly accepted the 2015 CFA Project of the year award (Concrete Foundation Association)!! Jim Baty of the CFA presented the plaque to four Bartley Corp leaders during the 2015 CFA Convention in Williamsburg Virginia. If you didn't know, this is kind of a big deal !!  …
    Tags: bartley, construction

Leave a Reply