Definition
A schedule of values (SOV) is a breakdown of the contract price into line items (e.g., by phase, trade, or CSI division) with a value for each. It is used for progress billing: each period, the contractor reports completion per line item, and the owner pays based on the SOV. It is often required at contract start and approved by the owner or architect.
Why It Matters
The SOV is the basis for progress payments and for tracking revenue and cost by phase. It must be approved before billing. Front-loading (assigning too much value to early items) can be restricted by contract. Aligning the SOV with the estimate and cost codes supports accurate job cost and billing.
When change orders hit, the SOV should be updated so contract value, line items, and pay applications stay aligned. The same approved SOV is usually the reference for owners, architects, and lenders (certifications, draws, audits)—one agreed breakdown beats conflicting spreadsheets. Scheduled values fixed up front also reduce mid-job arguments over what completed work is worth.
Key column concepts
Typical SOV or continuation-sheet style lines use these ideas (exact columns depend on contract and form):
| Concept | Purpose |
|---|---|
| Item number | Identifies the line and ties it to schedules and cost codes. |
| Description of work | Defines scope for that line—cuts ambiguity at inspection and approval. |
| Scheduled value | Agreed dollars for the line; caps what can be billed for that scope. |
| Work completed | Value of labor and installed work to date; drives billing and revenue tracking. |
| Stored materials | Materials on site (or approved off-site) billed before installation—when the contract allows, it improves cash flow. |
| Balance to finish | What remains on the line after work (and stored materials, per your method) is applied—useful for forecasting and closeout. |
Field Example
Contract $100,000. SOV: Site work $15,000, Concrete $20,000, Framing $25,000, MEP $20,000, Finish $15,000, Overhead/margin $5,000. In month 2, framing is 40% complete; framing line = 0.40 × $25,000 = $10,000 complete. That feeds the progress application and revenue recognition.
Larger job: A GC has a $5,000,000 contract. The approved SOV splits major scope: site preparation $400,000, concrete foundation $600,000, structural steel $1,200,000, building envelope $1,000,000, MEP $1,800,000. In month 3, concrete is 75% complete. Because the owner already approved the SOV, the contractor can bill that line at 0.75 × $600,000 = $450,000—the value was agreed before work started, so billing is objective rather than renegotiated each period.
Calculation / Formula (if applicable)
Line complete to date = Line value × % complete for that line (or actual quantity × unit price). Total complete to date = Sum of line complete to date. SOV line values must sum to contract value.
Software Application
Support SOV per job: line items (description, value, optionally cost code), total = contract value. Use SOV for progress billing: enter or calculate % complete (or quantity) per line, compute amount complete, retainage, and billing amount. Report SOV vs. actual cost by line for margin analysis.
Tooltip Version
A schedule of values breaks the contract into line items with a value each; it’s the basis for progress billing and tracking completion by phase.
Related Objects
Related: