What Is a Schedule of Values in Construction? The Document Your Draw Depends On
A schedule of values is the document that makes progress billing possible. It breaks the total contract price into line items, each with a dollar value, so the owner, the architect, and you all agree on what percent of the work is done and what gets paid this month. Without it, a pay application is just a number you made up. If you are asking what is a schedule of values in construction, here is the working version: the itemized price list that your monthly draws are measured against.
A sample schedule of values
The clearest way to understand an SOV is to look at one. Below is a simplified SOV for a $120,000 kitchen remodel. The line items add up to exactly the contract price, and each one is specific enough that an architect walking the site can verify the percentage claimed.
| Line item | Scheduled value | % complete | Billed to date | Balance |
|---|---|---|---|---|
| Demolition | $8,000 | 100% | $8,000 | $0 |
| Rough plumbing | $12,000 | 100% | $12,000 | $0 |
| Electrical rough-in | $14,000 | 80% | $11,200 | $2,800 |
| Drywall and texture | $10,000 | 40% | $4,000 | $6,000 |
| Cabinetry | $32,000 | 0% | $0 | $32,000 |
| Countertops | $12,000 | 0% | $0 | $12,000 |
| Flooring | $14,000 | 0% | $0 | $14,000 |
| Paint and finish | $10,000 | 0% | $0 | $10,000 |
| Punch list | $8,000 | 0% | $0 | $8,000 |
| Total | $120,000 | $35,200 | $84,800 |
Each month, you update the percent-complete column per line, and the pay application is the math done on this table. On AIA jobs, this table is literally the G703 continuation sheet, attached to the G702 application for payment. The architect certifies that the percentages match what is actually in place, and the owner releases funds against it.
Three rules for building one that survives review
First, make the line items match how you will actually bill. Twelve honest line items organized by trade or phase beat forty padded ones. Every line has to be verifiable in the field, so "miscellaneous, $20,000" is a line item that invites a fight.
Second, give stored materials their own line. If you have bought the cabinets but not installed them, AIA billing lets you bill for materials purchased but not yet used, and a separate stored-materials line keeps that clean.
Third, change orders get their own lines, always. Never fold extra work into an existing base line item. The moment a change order disappears into "electrical rough-in," nobody can tell what the extra work cost, and you lose the paper trail if payment is disputed later. Our change order invoicing guide covers the mechanics.
Where schedules of values break
The classic failure is front-loading: shifting value toward early line items to pull cash forward. Demolition does not cost 30 percent of the job, and everyone reviewing the SOV knows it. Getting caught front-loading does not just get the pay app kicked back; it makes the architect scrutinize every percentage you claim for the rest of the project.
The quieter failure is billing 90 percent on a line that is 50 percent done and hoping nobody walks the site. Somebody always walks the site. An SOV only works if the percent-complete numbers are honest, and the only enforcement mechanism is a person in boots looking at the actual work.
My view: the SOV is a trust document first and a billing document second. Get it approved in writing before your first pay application. An approved SOV turns every later argument about money into an argument about math, and math is easier to win. See also how progress invoices work and what retainage does to each draw.
Frequently asked questions
Is a schedule of values required on every job?
No. It is required when the contract calls for AIA-style billing or the owner demands it. Many small residential jobs bill fine on simple progress invoices without one.
Who creates the schedule of values?
The general contractor drafts it after the contract is signed, with input from subcontractors on their scopes, and the owner or architect reviews and approves it before the first pay application.
What is the difference between a schedule of values and the AIA G703?
The SOV is the breakdown of the contract into line items. The G703 is the AIA continuation sheet that presents that breakdown inside a pay application, with percent complete and amounts billed to date.
What does front-loading a schedule of values mean?
Shifting contract value toward early line items to get paid sooner. Owners and architects watch for it, and getting caught damages trust for the rest of the job.
Can the schedule of values change after work starts?
Yes, through change orders, which get their own separate line items. Never fold a change order into an existing base line item; that hides what the extra work cost.
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