G703 Form - Column F: Material Presently Stored

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    Dwayne Hibbert

    @Fedor Frolov, I get your explanation, but if you place the previous and new materials in the same column F, when your calculating retainage on the materials, wouldn't you be calculating twice for the previous materials since there is already a charge for it in the previous payment application?

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    Dwayne Hibbert

    I am having a warm time wrapping my mind around how this form is filled out as well, but this is what I think. Let's say exterior wall is a line item in the description of work (column B) that item would then break down into vinyl siding, insulation, sheathing, studs, labor, etc. If 10 boxes of siding are bought and stored in this month's payment application, the amount for the boxes of siding should turn up in columns C and F. That amount should also be shown in column H as price if no siding was installed. If none of the siding is installed in the following month it should not turn up again in column F because retainage was already checked on the material when it was bought in the previous payment application. However, the full amount for the siding should come back in column H because it is the balance of the material that is still not installed.

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    Fedor Frolov
    1. F includes the value of any materials currently being stored including the leftover (unused) from the previous applications for payment plus new materials value (if any) as well.

     

    1. Value of Materials that are bought and stored and paid by the owner at the previous applications for payment , if they are used/applied in the work in the current period for application for payment, are included in E amount.(become part of the work completed value for this period).

     

     * the unused (still being stored) materials value paid by the owner from previous payments stay in column F plus new materials value (if any) as well.

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    Fedor Frolov
    1. Please have G702; G703 Forms next to you.

     

    1. In G703 Form The retainage value (I ) represents the total retainage value for the date. Since the total retainage value (I) calculated based on total value of (D + E) *% + (F)*%= (I ) it does not matter where part of previous (F) value goes. (it anyway goes to (E) firstly and latter become/ represented as part of (D).

    For example if retainage for Completed work and Stored Material is equal and is  10% of their values the equation for (I ) would be (D + E+ F)*10%= (I )

    1. The key moment that form G703 works/ supplements with G702. The goal of G702 to calculate the payment due amount.

        The G702 calculation based on the total balances for the certain date calculation. The  payment due amount = (G)  - (I) - (total payments from previous applications).

    1. The variable (total payments from previous applications) is in charge for not paying twice for the same values.

     

    1. Thus we have two true statements if standard G702;G 703 AIA forms is used:

    5.1. We can calculate payment amount due based only on G703 form if it is only the first payment and no any payment was made before for the work, the variable (total payments from previous applications) =0.

    5.2. We can not calculate payment amount due based only on G703 form if it is any next payment and the variable (total payments from previous applications) is unknown.

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    Dwayne Hibbert

    Ok this makes sense now. Thank you

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    Fedor Frolov

    You are welcome

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    Trung Hoang

    Thank you, Fedor for the explanation!
    I would agree with your information which is one of my theories of how this is filled out.
    It is hard to believe that it is quite complicated than I thought how the numbers on this Form would be.
    Although I agree with you and this is probably the only way for this to all make sense, it feels counter-intuitive that the used material amount paid already from the last period reappears in column E (Work Completed This Period) in the later pay period. Looks as if owner has to pay it again in this period.
    You have two solid points at the end of your comments about the amount dued for the current pay period.

    If this is how it is done, it is very confusing and unecessarily complex.
    I look at some of the payment app. fromm contractors where I work, they break materials and labor into two lines of item and never used column F and D.

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