What Is Aia Time & Material Billing?
The AIA, or the American Institute of Architects, is a representative agency for professional architects. In addition to providing resources for architects, the AIA also sets standards for various parts of the business including billing.
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AIA Billing
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AIA billing is intended to be a standardized method of billing for construction projects. The AIA billing system requires two forms to be filled out: the G-702 Contractors Application for Payment and the G-703 Continuation Sheet. Both keep track of the progress of the project and ensure payment to the contractor. This billing method is based on what percentage of a project is completed to that date.
Time and Materials Billing
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Time and materials billing is not regulated by AIA, and is a little more freeform. It is based on the materials purchased and time spent at work on the project from week to week. This is a much less standardized method of billing for construction projects.
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Considerations
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AIA billing is the better choice for large projects, where many people are involved with multiple aspects of a job. These require a standard billing method to keep everything organized. Use time and materials billing for smaller jobs. There is no need to fill out the AIA paperwork for simpler jobs where materials and time can easily be tracked.
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References
- Photo Credit construction site image by windzepher from Fotolia.com
