AI Pay Application Reconciliation Agent

How Cassidy automates subcontractor pay application processing using AI

Step 1: Trigger on subcontractor pay app submission

The Workflow activates when a subcontractor submits their pencil copy pay application—whether uploaded as a PDF, entered through a portal, or received via email—and ingests the G702S/G703S along with all backup documentation.

Step 2: Parse and normalize billing data

Cassidy extracts line items from the continuation sheet, maps them to your commitment SOV and cost codes, and structures the data for validation against the subcontract and approved change orders.

Step 3: Validate calculations and flag variances

The Workflow enforces G702/G703 arithmetic, checks retainage rates against contract thresholds, compares claimed percent-complete to field progress data, and surfaces discrepancies like unapproved CORs, stored materials issues, or over-billing.

Step 4: Orchestrate compliance and documentation checks

Cassidy verifies that conditional progress lien waivers, sub-tier waivers, certificates of insurance, and certified payrolls (if required) are attached and valid—holding approval until all gates are cleared.

Step 5: Route for review and generate markups

The reconciled pay app routes to your PM, Superintendent, or Accounting team with flagged exceptions and proposed corrections, enabling pencil copy collaboration until consensus is reached.

Step 6: Aggregate and compile owner pay application

Once subcontractor packages are approved, Cassidy rolls them into your consolidated G703 continuation sheet and G702 certificate for payment, ensuring internal consistency for architect and owner certification.

Step 7: Post to ERP and update retainage ledger

Approved invoices sync to your accounting system, AP vouchers are created, and the retainage ledger updates automatically—tracking withheld amounts by sub and by line through disbursement and final release.