Schedule of Values (SOV) Setup
Document Type: Procedure
Version: 1.0
Last Updated: February 2026
Distribute To: AR Team, Project Managers, Estimating
Purpose
Establish a consistent process for creating the Schedule of Values (SOV) to ensure accurate billing, proper cost tracking, and contract compliance.
What is a Schedule of Values?
The Schedule of Values (SOV) is a detailed breakdown of the contract price into component parts that will be used for:
- Monthly progress billing (AIA G703)
- Cost tracking and management
- Payment verification by owner/architect
- Contract administration
When to Create the SOV
Timeline:
- After contract execution
- Before first pay application
- Typically within 10-14 days of contract
- Must be approved before billing can begin
SOV Development Process
Step 1: Gather Information
Required Documents:
- Executed contract
- Final estimate/budget
- Specification sections
- Subcontract awards
- Owner SOV requirements (if specified)
Review Contract Requirements:
- Number of line items required
- Format requirements
- Level of detail required
- Approval process
- Modification procedures
Step 2: Determine SOV Structure
Organization Options:
By CSI Division:
Division 03 - Concrete
Division 04 - Masonry
Division 05 - Metals
Division 06 - Wood & Plastics
...
By Project Phase:
Phase 1 - Sitework
Phase 2 - Foundation
Phase 3 - Structure
Phase 4 - Building Envelope
Phase 5 - MEP
Phase 6 - Finishes
By Building/Area:
Building A
Building B
Site Improvements
Best Practice: Match owner's requirements, or use CSI divisions if no preference
Step 3: Create Line Items
Line Item Guidelines:
DO:
- Create enough detail for clear progress tracking
- Align with contract scope divisions
- Match subcontract breakdowns
- Enable meaningful monthly billing
- Include all work in original scope
DON'T:
- Create too few line items (hard to show progress)
- Create too many line items (administrative burden)
- Front-load values (appears as overbilling)
- Leave out scope items
Typical Number of Line Items:
- Small project ($500K-$2M): 20-40 items
- Medium project ($2M-$10M): 40-80 items
- Large project ($10M+): 80-150+ items
Step 4: Assign Values
Value Assignment Methods:
1. From Estimate:
- Use estimate breakdown
- Adjust for contract changes
- Ensure total matches contract
2. From Subcontracts:
- Use subcontractor SOVs
- Add GC markup/overhead
- Verify sub SOV totals match contracts
3. From Historical Data:
- Use similar project percentages
- Adjust for project specifics
Balancing Requirements:
- Individual line items must be reasonable
- Total must equal contract sum exactly
- Avoid obvious front-loading
- Support with backup if questioned
Step 5: Include Required Items
Standard Line Items:
| Item | Description | Notes |
|---|---|---|
| General Conditions | Site overhead, supervision | Often 5-10% |
| Mobilization | Site setup, temp facilities | Often front-loaded |
| Bonds & Insurance | Project-specific costs | Fixed amount |
| Permits | Building permit, other fees | As incurred |
| Fee/Overhead/Profit | GC margin | May be last item |
Trade Line Items (Example):
- Sitework (excavation, utilities, paving)
- Concrete (foundations, slabs, structure)
- Masonry
- Structural Steel
- Carpentry (rough, finish)
- Roofing
- Doors/Frames/Hardware
- Glass & Glazing
- Drywall/Ceilings
- Flooring
- Painting
- Specialties
- Plumbing
- HVAC
- Electrical
- Fire Protection
Step 6: Internal Review
Before Submission, Review:
- All scope included
- Total matches contract sum
- Values are reasonable (not front-loaded)
- Matches estimate/budget breakdown
- Subcontractor SOVs incorporated
- General conditions appropriate
- Owner requirements met
- Format is correct
Step 7: Submit for Approval
Submission:
- Submit to owner/architect per contract
- Include cover letter if required
- Allow time for review and revision
Typical Review Items (Owner/Architect):
- Reasonableness of values
- Adequate detail
- No apparent front-loading
- Alignment with contract
If Revisions Required:
- Discuss concerns
- Provide backup/justification
- Revise as agreed
- Resubmit promptly
Step 8: Finalize and Distribute
Upon Approval:
- Document approval date
- Distribute to project team
- Enter in billing system
- Provide to subcontractors (their portions)
- Set up cost tracking alignment
SOV Template
================================================================
SCHEDULE OF VALUES
================================================================
PROJECT: ________________________ CONTRACT #: ____________
OWNER: __________________________ DATE: ____________
CONTRACTOR: _____________________
ORIGINAL CONTRACT SUM: $_______________
================================================================
| Item | Description | Specification | Scheduled |
| No. | | Section | Value |
|------|--------------------|---------------|-----------|
| 1 | General Conditions | 01000 | $ |
| 2 | Mobilization | 01500 | $ |
| 3 | Bonds & Insurance | 01400 | $ |
| 4 | Sitework | 02000 | $ |
| 5 | Concrete | 03000 | $ |
| 6 | Masonry | 04000 | $ |
| 7 | Structural Steel | 05100 | $ |
| 8 | Misc. Metals | 05500 | $ |
| 9 | Rough Carpentry | 06100 | $ |
| 10 | Finish Carpentry | 06200 | $ |
| 11 | Thermal/Moisture | 07000 | $ |
| 12 | Roofing | 07500 | $ |
| 13 | Doors & Frames | 08100 | $ |
| 14 | Hardware | 08700 | $ |
| 15 | Glass & Glazing | 08800 | $ |
| 16 | Drywall | 09250 | $ |
| 17 | Acoustical Ceiling | 09510 | $ |
| 18 | Flooring | 09600 | $ |
| 19 | Painting | 09900 | $ |
| 20 | Specialties | 10000 | $ |
| 21 | Equipment | 11000 | $ |
| 22 | Furnishings | 12000 | $ |
| 23 | Plumbing | 15400 | $ |
| 24 | HVAC | 15700 | $ |
| 25 | Electrical | 16000 | $ |
| 26 | Fire Protection | 15300 | $ |
|------|--------------------|---------------|-----------|
| | TOTAL | | $ |
================================================================
Submitted By: _________________________ Date: ____________
Approved By: __________________________ Date: ____________
================================================================
Front-Loading Considerations
What is Front-Loading?
Assigning higher values to early work items to receive more payment in early project stages.
Why It's Problematic:
- Creates overbilled position
- May require credit if project stops
- Erodes trust with owner
- May violate contract terms
How to Avoid:
- Base values on actual costs
- Keep mobilization reasonable (3-5%)
- Don't inflate early trade work
- Be prepared to justify any questioned values
Acceptable Early Items:
- Actual mobilization costs
- Permit fees
- Bonds/insurance (one-time)
- Early procurement (long-lead)
Modifying the SOV
When Modifications Occur:
- Change orders approved
- Scope additions/deletions
- Reallocation between items
Process:
- Add new line items for change orders
- Adjust values as needed
- Submit revised SOV to owner
- Obtain approval
- Use revised SOV for future billing
Change Order Line Items:
- Add as separate line items
- Number as CO-001, CO-002, etc.
- Include description and approved amount
Aligning SOV with Cost Tracking
Best Practice:
SOV line items should align with:
- Budget/estimate
- Job cost codes
- Subcontract values
Benefits:
- Easy billing preparation
- Accurate cost-to-complete
- Simple variance analysis
- Better project control
Related Documents
- Pay Application Process
- Change Order Management
- Project Startup Procedure
- Cost Management Procedure
Software Integration
BLDR Pro Features:
- SOV creation and management
- Alignment with cost codes
- Automatic G703 generation
- Change order integration
- Progress tracking
Template provided by support.construction. Customize with your company information.