Getting Paid

What to Do When Your Pay App Gets Rejected

A rejected pay app doesn't mean you don't get paid. Here's how to respond, what to fix, and when to escalate.

4 min read

Getting a pay application returned or rejected is frustrating but common — especially early in a project relationship. The good news is that most rejections are fixable if you know what to look for.

Ask for the reason in writing

Don't accept a verbal 'we're not approving this' without documentation. Ask the GC to identify the specific items in dispute and put it in writing. This protects you and creates a record if the situation escalates.

Common reasons for rejection

Missing or expired COI. Lien waiver not attached or not matching the payment amount. Billing percentage exceeds observed completion. Unapproved change orders included. Application submitted after the cutoff date. Wrong application number or period dates.

Respond quickly

Most GCs have a monthly billing cycle. If your application gets rejected, you want to resubmit within the same cycle if possible — otherwise you're waiting another 30 days. Respond to the rejection the same day if you can, fix the issues, and resubmit immediately.

When to escalate

If your application is properly submitted with all required documents and the GC still won't approve without valid reason, that's a different situation. Review your contract for dispute resolution procedures. California law provides specific protections for subcontractors — including the right to file a mechanics lien if payment is wrongfully withheld. Document everything.

This is general educational information, not legal advice. If you believe payment is being wrongfully withheld, consult a construction attorney.

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