Schedule of Values in Construction: What It Is and How to Use It
A schedule of values (SOV) is one of the most important documents in a construction project. It breaks down the total contract amount into clear, manageable parts, making it easier to track progress, approve payments, and reduce disputes. Whether you’re a general contractor, project manager, or trade partner, understanding how an SOV works can help you manage billing accurately and protect your budget.
This guide explains what a schedule of values is, how to create one, when to use it, and what mistakes to avoid. You’ll also find a practical checklist, sample format, and answers to frequently asked questions, all written for construction professionals who work with real budgets, real timelines, and real risk.
To make sure your SOV aligns with contract obligations from the start, tools like Document Crunch’s construction contract review can help ensure consistency and catch issues before they delay payment.
What Is a Schedule of Values?
A schedule of values (SOV) is a document that breaks down the total contract amount into individual work items, each assigned a specific dollar value. It is used to support progress billing and track how much work has been completed and billed over time.
The SOV is common in commercial and institutional construction, especially where payments are made in stages. It ensures billing aligns with actual work performed, not estimates. Most SOVs are built from the project budget or subcontractor quotes for accuracy.
A standard SOV includes item numbers, descriptions, values, and columns for tracking billing progress. When updated regularly, it helps manage payments, monitor milestones, and support financial documentation throughout the project.
Why Is the Schedule of Values Important in Construction?
A schedule of values ensures that progress payments match actual work completed. Without it, contractors risk underbilling or overbilling, which can lead to cash flow problems, trust issues, and even legal disputes. Owners and lenders depend on it to verify that money is being released only for verified, completed work.
This document also supports internal accountability. It ties financial data to physical progress on-site, allowing project managers to compare percent complete against the budget in real time. In the absence of an accurate SOV, field teams may report progress differently from accounting teams, which can cause friction, billing rejections, or rework in monthly reports.
For contractors working under GMP agreements, the SOV helps align risk and responsibility by mapping out cost items in a format that matches both the contract and project delivery model.
A well-structured SOV improves visibility across all stakeholders and provides a consistent reference point throughout the job. It supports clear documentation, faster approvals, and better financial controlmaking it essential for every construction team aiming to manage risk and protect margin.
When and Where Is a Schedule of Values Used?
A schedule of values is used in any project that includes progress payments. This typically includes commercial, institutional, and government construction, especially when the work is billed over time, rather than in one lump sum. It’s also common in large-scale residential developments with multiple phases or funding sources.
The SOV becomes part of the formal billing package. Contractors submit it with each pay application to show how much work has been completed and what portion of the contract should be invoiced. Owners or construction managers then use this to review and approve payments. In projects that use outside financing, the SOV may also be submitted to lenders as part of the draw request process.
It’s especially important in delivery models where construction starts before design is complete. In design-build or CMAR projects, for example, the SOV must evolve as scope becomes clearer. Teams often integrate the SOV into their digital workflow using preconstruction software or contract review platforms to avoid mismatches between the SOV and contract terms.
Because it provides structure, the SOV is also a tool for project controls. It tracks progress, flags overbilling, and helps catch gaps between estimated and actual costs, giving teams the visibility they need to stay on budget and avoid conflicts.
Who Prepares the Schedule of Values?
The general contractor is typically responsible for preparing the schedule of values, but the process often involves input from key subcontractors. In more complex jobs, especially those using a construction manager at risk (CMAR), the CMAR may coordinate the SOV as part of early-stage cost planning. Their role is to ensure the SOV reflects both the budget and scope defined in the project’s construction documents.
For the SOV to be effective, it must align with contract terms and project execution. That’s why teams often refer back to their GMP construction contract during SOV development, especially when working with cost caps and open-book models. This helps ensure that each value is not only accurate, but defensible during billing and audit.
On projects with outside financing or insurance oversight, the SOV may also be reviewed by sureties and risk teams to confirm that values are properly distributed across insurable scopes or coverage areas. The SOV becomes a shared reference point for billing, scope validation, and even compliance with procurement requirements.
While the contractor owns the process, collaborative review is key. A rushed or generic SOV can slow down approvals, trigger payment delays, or create friction between field teams and finance.
How to Create a Schedule of Values
Creating a schedule of values starts with breaking the total contract amount into logical work components. These components should reflect how the work will be performed, measured, and paid. Inaccurate or vague entries can delay billing approvals, trigger disputes, or cause accounting mismatches later in the project.
The values assigned to each item should be based on the construction budget, confirmed subcontractor pricing, or early-phase estimates reviewed during project kickoff planning. Accuracy at this stage is critical, especially for jobs that rely on progress billing or lender draw schedules. The goal is to provide a structure that mirrors the actual flow of work, avoids overlap, and supports billing transparency.
Some contractors organize their SOV by trade or CSI division, while others use phases or locations. What matters most is internal consistency. The SOV should support contract administration, help the field team communicate scope progress, and serve as a single source of truth across billing cycles.
Key Elements to Include in an SOV
At minimum, a usable SOV includes:
- Item number (sequential)
- Clear description of work
- Scheduled value ($ amount)
- Percent complete to date
- Amount previously billed
- Current billing amount
- Balance remaining
Some firms also include a retainage column or change order flags, depending on how their billing system works. What matters is that every column has a purpose, and that the totals tie out to the contract amount.
Checklist: Steps to Build a Schedule of Values
Here’s a practical step-by-step checklist for building an SOV that passes review on the first submission:
- Start with the signed contract value and confirm the full scope
- Break the work into logical parts (by trade, location, or phase)
- Assign realistic values to each based on internal estimates or sub quotes
- Double-check math so the sum must match the contract
- Add fields for percent complete, billed to date, and balance
- Include placeholders for retainage or change orders if required
- Have the project manager and accounting review before submission
- Submit early if lender or owner pre-review is required
By treating the SOV as a foundational tool rather than a paperwork formality, teams improve their chances of smooth payment cycles, lower financial risk, and better field-to-office alignment.
Schedule of Values Example
Seeing how a schedule of values works in context makes its purpose clear. Below is a simplified example from a mid-sized commercial buildout using a GMP contract structure. The total contract value is $1,200,000, broken down by construction phase.
This structure supports transparent billing, aligns with the construction timeline, and allows for real-time updates across phases.
Sample SOV Breakdown (Summary Table)
| Item No. | Description | Value ($) | % Complete | Amount Billed | Remaining |
| 1 | Site Prep | 50,000 | 100% | 50,000 | 0 |
| 2 | Concrete/Foundation | 180,000 | 75% | 135,000 | 45,000 |
| 3 | Framing | 250,000 | 60% | 150,000 | 100,000 |
| 4 | MEP Rough-In | 300,000 | 30% | 90,000 | 210,000 |
| 5 | Interior Finishes | 270,000 | 10% | 27,000 | 243,000 |
| 6 | Punch List/Closeout | 50,000 | 0% | 0 | 50,000 |
| Total | 1,200,00 | N/A | 452,000 | 748,000 | |
This table serves as a living document throughout the build. It reflects actual progress, supports applications for payment, and creates a reliable audit trail in case of disputes or financing questions.
A few takeaways:
- Each line item should map to clear scope; vague descriptions create confusion.
- Values should reflect actual effort and cost, not just percentages to “fill out” the total.
- Keep trade input involved, especially when assigning values across specialties.
- The structure must match how project progress is tracked, not just accounting codes.
For larger projects, or those involving many subcontractors, the breakdown may include dozens of line items and span multiple pages. Regardless of size, the principles remain the same: accurate values, clear descriptions, consistent updates.
Case Study: Real-World Use of an SOV in Construction
During a complex commercial build, Commodore Builders used a structured schedule of values to align contract terms with on-site progress and billing milestones. This clarity helped reduce ambiguity in payment applications and kept all stakeholders on the same page. By combining this structured approach with tools from Document Crunch, the team was able to flag inconsistencies in payment terms and scope descriptions early in the process. Their experience, outlined in the case study on how Commodore Builders used Document Crunch with Procore, shows how integrating contract intelligence with a well organized SOV improves compliance, reduces payment delays, and supports more reliable project delivery.
Common Mistakes to Avoid with SOVs
Even a well-intended schedule of values can cause problems if it’s built without accuracy or oversight. Certain patterns repeatedly lead to disputes, payment delays, or lost trust. Here are the most common mistakes to avoid when building or reviewing an SOV.
Frontloading and Misallocated Costs
Frontloading happens when early line items are assigned values that exceed the actual work performed. While this may improve early cash flow, it creates tension with owners and lenders, especially if payments outpace real progress. Worse, it can complicate closeout when remaining work has little to no value left in the SOV.
Misallocated costs are also risky. Assigning incorrect values to the wrong scope item can cause confusion across finance, field, and accounting teams. A properly built SOV should reflect how the job is actually executed, not how someone wants cash to flow.
Missing Indirect Costs
Some SOVs focus only on direct construction work and omit critical indirect costs like project management, permits, supervision, or temporary facilities. These line items may be small individually, but they represent real expenses that must be recovered.
If these costs are omitted, the contractor may have to absorb them, or submit change orders later that may seem opportunistic. Including a modest set of general conditions or overhead values in the initial SOV prevents surprise negotiations later.
Insufficient Review or Coordination
Schedules of values should be reviewed by multiple stakeholders before submission, not just accounting. Field teams, project managers, and even trade contractors need to agree that the values and descriptions reflect the actual execution strategy. Skipping coordination often leads to repeated rejections, time-consuming corrections, or billing hold-ups.
Using tools like the Construction Contract Review platform from Document Crunch can catch inconsistencies between scope, payment terms, and the structure of the SOV before it reaches the owner’s desk.
Benefits of Using a Well-Structured Schedule of Values
A well-structured schedule of values not only organizes payment but also supports better project outcomes at every level. When the SOV is built accurately and reviewed collaboratively, it improves both financial and operational efficiency.
One of the most immediate benefits is improved payment speed. Clear, consistent line items reduce the back-and-forth with owners and financing parties, allowing faster approvals and more predictable billing cycles. This enhances cash flow, especially on longer projects or those with strict lender oversight.
Another key advantage is scope clarity. A detailed SOV prevents confusion about what work is included in each payment request. This makes it easier for owners, contractors, and field staff to stay aligned, especially when discussing change orders or schedule impacts.
The SOV also provides real-time oversight of budget and progress. Project managers can use it to flag misalignments between actual work and billing, helping teams catch overdrawn or delayed items early. This improves forecasting and financial control across the project lifecycle.
When changes occur, a reliable SOV makes it easier to identify which scopes or phases need adjustment. It reduces the friction often associated with pricing and approving construction change orders because everyone is working from the same document.
At closeout, a clean SOV simplifies the final payment process. Owners and auditors can quickly verify that all contracted scope has been completed and paid for. This reduces the risk of withheld funds, rework, or compliance issues during final review.
Finally, well-structured SOVs integrate more easily into digital construction platforms. If built with consistency, they sync directly with project management tools such as Procore, helping teams automate draw requests, track changes, and reduce manual entry errors.
Schedule of Values Template and Tools
A schedule of values template gives structure to how payment is requested and tracked. While spreadsheets remain common, many teams rely on industry-standard forms such as the AIA G702/AIA G703 continuation sheets to ensure consistency and compliance across billing cycles. A strong template not only reflects contract values, but also mirrors how work is planned and executed across phases or trades.
Templates tied to project playbook systems make it easier to align the SOV with milestones, cost codes, and contract scope from the start. This ensures consistency in how progress is measured and paid over time.
Software Solutions for SOV Creation
Digital platforms now offer integrated tools for generating and managing SOVs at scale. For example, contractors using Procore can link scheduled values directly to pay apps and project tracking modules. This minimizes duplicate entry and helps ensure that field progress matches billing activity.
Tools like the Document Crunch risk review platform further enhance this process by reviewing the contract for payment terms, retainage rules, and compliance triggers. They identify misalignments and risks early, so billing doesn’t stall due to oversight or non-compliant formatting.
Using Technology to Create and Manage a Schedule of Values
Construction software has redefined how teams approach the schedule of values. Contractors now use tools rather than static spreadsheets, aligning billing with project execution, change events, and contract requirements in a single system.
Advantages of Digital SOV Tools
Platforms that automate or assist in SOV creation reduce errors, save time, and support better coordination between stakeholders. Cloud-based systems provide real-time access for both office and field teams, keeping billing aligned with actual work in place.
These tools are especially effective on complex projects with multiple trades or payment applications. The ability to lock logic, pre-fill billing fields, and track versions gives project teams more control and less administrative friction.
Integrating with Contract Review Platforms
AI contract review tools bring clarity to how SOVs should be built. By analyzing contract language, these platforms highlight payment terms, scope descriptions, and compliance requirements that must be reflected in the schedule of values.
This reduces disputes and accelerates approvals, particularly when tied to AI-based contract intelligence that flags billing risks before they affect cash flow. Integrating review with SOV creation gives teams a real advantage in managing project financials accurately and efficiently.
How the SOV Supports Payment and Project Management
The schedule of values is more than a billing format. It’s a financial management tool that keeps payment applications tied to actual progress, while giving visibility into cost performance and risk. A clear, up-to-date SOV supports better decision-making across every phase of construction, especially when aligned with cost control systems, contracts, and field reporting tools.
Payment Applications and Progress Tracking
The SOV breaks down the total contract amount into specific work items, which become the basis for monthly billing. Each line item reflects the percentage of work completed, linking billing to progress milestones. This ensures that draw requests are backed by actual field performance and provides owners with transparency on how funds are used.
When integrated with platforms like Procore or G702/G703 forms, the SOV enables automated tracking of billing across pay periods. Project managers and accountants can compare planned values against actual quantities, preventing overbilling and aligning expectations across the team.
It also simplifies reconciliation at closeout. Because payments are tied to clearly defined work scopes, there’s less ambiguity when confirming that the full contract scope has been delivered under standard industry forms such as AIA payment application procedures.
Cash Flow, Cost Control, and Compliance
A strong SOV supports cash flow planning by showing how revenue is expected to flow over the life of the project. This helps contractors time procurement, labor allocation, and subcontractor payments more accurately, reducing the risk of liquidity issues mid-project.
It also improves internal cost control. Teams can compare the values in the SOV against actual costs using risk review tools or cost code analysis. Discrepancies, such as frontloading or overestimated values, can be caught and corrected early, which helps avoid later disputes or budget overruns.
Want to simplify your contract reviews and streamline how your team handles SOVs? Sign up for a demo at Document Crunch.
FAQs About the Schedule of Values
What Does SOV Mean in Construction?
In construction, SOV stands for “schedule of values.” It’s a detailed statement of work items and their associated costs, used to support billing and progress tracking. The SOV ties contract values to specific scopes or milestones, forming the basis for pay applications.
What Does a Schedule of Values Look Like?
A typical SOV is a table with columns for item number, work description, scheduled value, percentage complete, amount previously billed, amount currently billed, retainage, and balance to finish. These values are updated throughout the project to reflect actual progress and billing history.
What Is the Schedule of Values Chart?
The term “schedule of values chart” generally refers to the visual or tabular format used to present billing data in a clear and auditable way. Whether in Excel or a project management system, the chart should show the cost breakdown of each work element and how much has been billed to date.
How Do You Fill Out a Schedule of Values?
To complete an SOV, start by breaking the total contract value into logical work packages or scope items. Assign a dollar value to each item that reflects its portion of the total. Then, as work progresses, update the percent complete and corresponding billed amounts.
What Is a Construction Schedule of Values vs Pay Application?
A schedule of values is the detailed breakdown of the contract amount into specific work items and values. A pay application, on the other hand, is the formal request for payment based on the percentage of work completed, using the SOV as its foundation. In short, the SOV is the structure, while the pay app is the action taken based on that structure.
How Often Do You Update the SOV?
The SOV should be updated monthly or at each billing cycle to reflect completed work and remaining balances. Regular updates ensure billing accuracy, align with field progress, and help avoid delays in approval or funding.