The Schedule of Values (SOV) is the foundation of construction billing. It breaks down your contract into line items, each with a scheduled value that you bill against as work is completed.
What is a Schedule of Values?
A Schedule of Values is an itemized breakdown of a construction contract that allocates the total contract sum across individual work items or phases. Each line item has a description and a dollar value that, when totaled, equals the original contract sum.
The SOV serves multiple purposes:
- Provides a structured basis for progress billing
- Allows granular tracking of work completion
- Forms the foundation of the AIA G703 continuation sheet
- Helps both contractor and owner track project progress
- Creates accountability for specific work packages
SOV Components
Each line item in your SOV contains:
| Field | Description | Example |
|---|---|---|
| Item Number | Unique identifier for the line | 1, 1.1, 2, 3.a |
| Description | What work this line represents | "Rough Electrical - Level 1" |
| Scheduled Value | Dollar amount allocated to this line | $25,000.00 |
How SOV Relates to Billing
When you create a pay application, you're essentially reporting progress against each SOV line item. The process works like this:
- Set up SOV - Create line items matching your contract breakdown
- Report progress - For each billing period, enter the work completed on each line
- Calculate billing - RIVET calculates what you've earned based on your progress
- Generate G703 - The SOV becomes your G703 continuation sheet
- Summarize on G702 - Totals flow to the G702 summary
G703 = SOV
SOV Structure
A well-organized SOV follows a logical structure. Common approaches include:
By Trade Section
- General Conditions
- Rough Work
- Finish Work
- Testing and Startup
- Closeout
By Building Area
- Level 1
- Level 2
- Rooftop
- Sitework
By CSI Division
- Division 26 - Electrical
- Division 26 - Low Voltage
- Division 26 - Emergency Systems
Match Your Contract
Setting Line Item Values
How you allocate values across line items is important for smooth billing:
Common Approaches
- Actual cost-based - Values reflect actual estimated costs with markup
- Front-loaded - Early work items weighted heavier (improves cash flow, but may be scrutinized)
- Proportional - Values reflect relative effort or duration
Important Considerations
- Total of all line items must equal the original contract sum
- GC may review and approve your SOV before billing begins
- Avoid "unbalanced" SOVs that are obviously front-loaded
- Consider how work will actually progress when setting values
GC Approval
Changing the SOV After Creation
Once you start billing, the SOV becomes the contractual basis for payments. Changes should be minimized but are sometimes necessary:
Allowed Changes
- Adding new line items for change order work
- Adjusting values if contract modifications occur
- Fixing obvious errors (with GC agreement)
Restricted Changes
- Cannot delete line items that have been billed
- Cannot reduce values below what's already billed
- Significant restructuring requires GC approval
SOV Best Practices
- Be specific - Vague line items make progress reporting difficult
- Appropriate granularity - Not too many tiny items, not too few large ones
- Measurable progress - Each line should have clear completion criteria
- Match contract language - Use terminology consistent with your contract
- Consider cash flow - Structure supports reasonable billing throughout the project
Number of Lines
Need Help?
If you have questions about setting up your Schedule of Values or need guidance on best practices for your specific trade, contact our support team at support@slpwlk.io.