Schedule of Values
A breakdown of the contract sum into line items that defines how progress payments will be calculated.
Definition
A schedule of values (SOV) is a breakdown of the total contract sum into line items, each with a defined dollar value, that together sum to the contract amount. The SOV defines how progress payments will be calculated each month — by determining the percent complete of each line and multiplying by the line value.
On lump-sum contracts the SOV is the equivalent of the bill of quantities used on unit-price contracts. It is submitted by the contractor early in the project and approved by the architect or owner before the first payment application.
How schedule of values is used in estimating
In estimating-to-construction handoff, the SOV is built from the bid estimate. The estimator or project manager organizes the bid build-up into line items that match how the work will actually be billed — typically by CSI division or by major work activity. Each line gets a dollar value that adds up to the contract sum. Many contracts cap individual line values to prevent excessive front-end loading.
The SOV is not just a billing tool; it is also the project’s internal cost code structure. Job-cost reporting, productivity tracking, and earned-value analysis all roll up against the same SOV lines. A well-designed SOV lets the project team see in real time which scopes are running ahead or behind on cost. A poorly designed SOV obscures the truth and makes mid-project corrective action much harder.
How to structure a schedule of values
Use enough lines to give meaningful billing granularity (typically 30 to 100 lines on a commercial building) but not so many that percent-complete estimation becomes guesswork. Group by trade or CSI division. Include separate lines for general conditions, bond, and insurance so they can be earned proportionally. Avoid loading more than 10 to 15 percent of the contract value into mobilization or other front-end items, because most architects will reject excessive front-end loading.
Frequently asked questions
Q.Who prepares the schedule of values?
The contractor prepares the SOV, derived from the bid estimate, and submits it to the owner and architect for approval shortly after contract execution.
Q.Is a schedule of values the same as a BOQ?
They serve a similar role — both break the contract into priced lines that drive billing. The BOQ is more common on unit-price and international contracts, while the SOV is the dominant format on US lump-sum work.
Q.How many lines should an SOV have?
Enough to give meaningful billing detail without becoming unmanageable. A small commercial job may have 20 to 30 lines; a large hospital may have several hundred. The right level matches how the work is naturally tracked on site.
Q.Can the SOV be changed mid-project?
Generally no — once approved it is the basis of billing. Change orders add new lines or modify existing ones, but the original lines stay fixed for billing purposes.
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