Stipulated sum: substantiate progress against agreed values
A stipulated-sum agreement establishes a price for the defined work, subject to contract adjustments. Progress billing commonly uses a schedule of values to allocate that amount. Review whether the billed progress is supportable, the allocation remains consistent, and changes are authorized. Supplier cost alone does not establish the percentage earned under a fixed-price arrangement.
Cost-plus with a GMP: substantiate eligible cost and the cap
For cost of the work plus a fee with a guaranteed maximum price, review reimbursable costs, the agreed fee calculation, and the adjusted GMP. The cap is not an amount automatically earned. Distinguish transfers between budget lines from changes that increase the GMP. Keep owner contingency, contractor contingency, allowances, and savings treatment separate according to the agreement.
Cost-plus without a GMP: an estimate is not a cap
Without a GMP, the cost estimate remains an important management baseline but is not itself a guaranteed maximum. Review allowable cost, supporting records, fee, and forecast exposure. Ask for a clear explanation when the forecast changes, even if the current request has complete invoices. Invoice completeness and cost eligibility are different questions.
Match the AIA form family
For conventional stipulated-sum billing, G702–1992 is commonly paired with G703–1992. For cost-of-work billing with a GMP, AIA identifies G702GMP–2021 with G703CW–2021. Without a GMP, the pairing is G702CW–2021 with G703CW–2021. The CW continuation sheet helps show estimated-value changes and reallocations. Confirm the executed agreement and delivery method; CM-as-adviser and other arrangements have their own document families.
Use three different review questions
For stipulated sum: ‘Does the claimed progress justify the earned value?’ For cost-plus with GMP: ‘Is the cost reimbursable, is the fee correct, and how does the request affect the cap and forecast?’ For cost-plus without GMP: ‘Is the cost reimbursable, and what is the latest expected total?’ Do not use an approved budget transfer as evidence that a contract amendment was approved.
Keep this handy
Review checklist
- Payment basis and delivery method identified
- Correct form pairing confirmed
- Cost, fee, contingency, and contract changes distinguished
- Forecast reviewed independently of this month’s request
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Sources & scope
These references inform the document and workflow context. Checklists and examples are BuildProof’s editorial recommendations. The executed agreement, applicable law, and authorized project decisions control.
- AIA: G702GMP–2021 instructions and cost-of-work form pairings
- AIA: G703CW–2021 continuation sheet instructions
AIA and its document names are trademarks of The American Institute of Architects. This independent guide is not an AIA form or an endorsement. Obtain licensed documents when required. Educational guidance only; it does not replace project-specific legal, financial, or professional advice.
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