FOUNDATIONS
What is a schedule of values?
By DrawPrep editorial · Updated · 5 min read
A schedule of values allocates the contract sum across portions of work. It is the foundation for every progress billing and pay application.
KEY TAKEAWAYS
- A schedule of values (SOV) breaks the contract sum into line items with scheduled values.
- Every pay application bills progress against those lines.
- Original-scope lines should total the original contract sum; approved changes are added as separate lines.
What is a schedule of values?
A schedule of values, or SOV, allocates the full contract sum among defined portions of construction work. It is the line-item foundation against which a reviewer evaluates progress billing. A useful SOV connects the scope in your contract to the work you will report each billing period.
AIA’s explanation of the schedule of values describes this allocation and its role in reviewing applications for payment. The format and supporting data may depend on the contract and project instructions; a spreadsheet is not automatically acceptable on every job.
What belongs on an SOV?
Begin with an item code, a description of the scope and its scheduled value. Use descriptions specific enough for the team reviewing progress to understand what is included. Organize the scope according to the format required for your project, rather than copying unrelated line items from another contract.
- Item code: a stable reference used across the application and supporting records.
- Description: the portion of contracted work covered by the line.
- Scheduled value: the amount allocated to that portion of work.
How do you check the total?
Reconcile the original-scope line values with the original contract sum. Keep approved changes identifiable so the team can distinguish original work from changed scope. In DrawPrep, approved change orders added to the SOV become linked lines; pending items are not treated as approved contract changes.
For example, an illustrative $100,000 contract could allocate $5,000 to mobilization, $65,000 to installation, $25,000 to equipment and $5,000 to testing. Those values total $100,000. This is a mathematical example, not a recommended allocation for your trade or contract.
What should you check before the first application?
- Confirm the required SOV format and submission timing.
- Check that every line has a distinct code and a clear description.
- Confirm the allocated original-scope values equal the original contract amount.
- Verify the required approval and documentation for changed scope.
- Keep the accepted version available for later billing comparisons.
Download the CSV starter for a simple starting structure. Replace its example rows with your actual scope and confirm project requirements before use.
Source
AIA Contract Documents: What is a Schedule of Values and Why is it Important to a Contractor?
Import your SOV into DrawPrep
Prepare, check and export pay applications for every GC. 14-day free trial.
Frequently asked questions
- What is a schedule of values?
- A schedule of values is a list of the portions of work in a contract, each with an allocated dollar value, that together equal the contract sum. It is the basis for progress billing.
- Who prepares the schedule of values?
- The contractor or subcontractor usually prepares it and submits it for approval before the first pay application.
- How detailed should an SOV be?
- Detailed enough for a reviewer to verify progress, following any format your GC or contract requires.
Billing guides by trade
- Pay application software for electrical subcontractors
- Pay application software for concrete subcontractors
- Pay application software for mechanical and HVAC subcontractors