Schedule of Values

What is a schedule of values?

A schedule of values (SOV) is a line-item breakdown of the total contract amount used for progress payment billing. Each line shows allocated dollars for a scope segment, such as demolition, framing, or finishes.

On commercial and institutional work, the SOV is the map owners and lenders use to review pay applications.

Why schedules of values matter

• Progress billing: You invoice as percentages or dollars complete per line
• Retainage calculation: Withheld amounts apply to approved SOV lines
• Change order tracking: Approved changes adjust specific SOV lines
• Dispute prevention: Clear allocation shows what you have earned

Without an SOV aligned to the contract, payment arguments start early.

Typical SOV structure

Lines should match scope of work divisions, not random lump sums that are hard to defend.

SOV and change orders

When change orders add scope, update the SOV before billing the extra work. Billing against stale values triggers owner rejections and delays cash flow.

Best practices

Front-load carefully. Owners reject SOVs that bill too much before work is visible.

Align SOV lines with how you track costs. Makes job costing easier.

Submit stored materials documentation when billing off-site inventory.

Update the SOV when scope shifts. One source of truth for billing.

The schedule of values turns a lump sum into billable milestones. Treat it as a living document, not a one-time bid spreadsheet.