Understanding the Schedule of Values (SOV)
In construction, getting paid accurately and on time starts with one key component— the Schedule of Values (SOV).
A Schedule of Values is an itemized breakdown of the entire contract amount, showing the cost of each phase or division of work. It’s the foundation for submitting progress billingsand filling out AIA pay applications(Forms G702 & G703).
For subcontractors, understanding how to create and fill out a Schedule of Values correctly is essential. Errors or incomplete SOVs can delay payment approvals and create conflicts with general contractors or project owners.
What Is a Schedule of Values?
A Schedule of Values (SOV)is a detailed document that lists every work item or cost category on a construction project, along with its corresponding dollar value. It serves as a roadmap for tracking project progress and managing payments. The general contractor or owner uses this schedule to review and approve progress payments based on how much of each item has been completed.
Why a Schedule of Values Matters
For subcontractors, the Schedule of Values plays a critical role in ensuring payment accuracy and transparency.
Here’s why it matters:
Tracks Progress and Payments
Each pay application is built around the Schedule of Values. It uses the SOV to determine how much of each line item has been completed during the billing period. This allows accurate calculation of the percentage of work finished and ensures payment requests match actual project progress.
Prevents Disputes
A clear breakdown helps everyone stay on the same page. It shows exactly what portions of the project have already been billed and what remains outstanding. This level of transparency reduces confusion and prevents payment disputes down the line.
Supports Project Documentation
It creates a detailed record of every billing stage throughout the project. This documentation makes it easy to review work history and payment accuracy during audits. It also helps ensure full compliance with contract terms and project requirements.
Integrates with Pay Applications
The Schedule of Values connects directly to the AIA G703 Continuation Sheet from the American Institute of Architects. This form lists each line of work alongside its associated costs and completion status. By aligning the two documents, subcontractors can present clear, itemized billing that’s easy for general contractors to review and approve.
How to Create a Schedule of Values
Here’s how to make a Schedule of Values step by step:
- Start with the Contract Scope
Review your contract and identify all major divisions of work. Each task or trade should have its own line item. - Assign Costs to Each Division
Allocate the total contract value across each item based on labor, materials, and equipment. - Use a Standard Format
Follow AIA G703 or your general contractor’s preferred layout. Columns typically include:- Item number
- Description of work
- Scheduled value
- Previous applications
- Work completed this period
- Balance to finish
- Double-Check Totals
Ensure all line items add up to your total contract price. Any mismatch could delay approval. - Submit for Review and Approval
Send the completed Schedule of Values to the general contractor or project owner for approval before billing.
How to Fill Out a Schedule of Values for Pay Applications
Once your SOV is approved, you’ll reference it each time you submit a pay application. Here’s how it works:
- Step 1:Update the “Work Completed” column for each billing period.
- Step 2:Include stored materials (if allowed) in your total for the period.
- Step 3:Subtract any retainage (commonly 5–10%).
- Step 4:Verify the total billed to date and remaining balance.
- Step 5:Attach your SOV (AIA G703) to the AIA G702 Application for Paymentform.
This ensures your pay app reflects exactly what work has been done — increasing the chances of fast approval and payment.
Schedule of Values Template
If you’re not sure where to start, use a Schedule of Values templateto build your first one.
A typical SOV template includes:
- Project name and number
- Contractor and subcontractor information
- Itemized list of work divisions
- Scheduled values per line item
- Totals for previous and current billings
- Remaining balance and retainage
Pros and Cons of Using a Schedule of Values Template
Using a Schedule of Values template can save subcontractors significant time by providing a clear, pre-formatted structure for organizing costs and work items. Templates help ensure consistency across projects, reduce manual errors, and maintain compliance with AIA billing standards. They also make it easier for teams to communicate and submit pay applications accurately, since everyone follows the same format. However, relying too heavily on a generic template can sometimes create challenges. Every construction project has unique scopes, cost codes, and contractual requirements that may not perfectly fit a one-size-fits-all format. If not customized properly, a template can lead to misaligned values, missing details, or confusion during review. The key is to treat templates as a starting point — not a final product — and adjust them to match your specific project’s structure, scope, and billing method.
Common Mistakes to Avoid
Over- or Under-Allocating Costs
It’s easy to misjudge how much value each division of work should represent within the Schedule of Values. When costs are unevenly distributed, it can create billing imbalances that complicate payment approvals later. Always review your scope, material estimates, and labor hours carefully to ensure each line item accurately reflects the true value of the work.
Omitting Stored Materials
Many subcontractors forget to include stored materials that have been purchased but not yet installed. This can lead to significant underbilling, especially for high-cost items like equipment or prefabricated materials. Always document and include approved stored materials in your SOV and pay applications to ensure you’re compensated for work and resources already committed to the project.
Inconsistent Line Items
Inconsistency between your Schedule of Values and your pay application forms can cause confusion and delay approvals. Each line item and description should match exactly across all documents submitted to the general contractor or owner. Keeping your formatting and numbering consistent ensures that reviewers can quickly verify the information and approve your payment.
Not Updating Regularly
A Schedule of Values isn’t a one-time document — it should evolve as your project progresses. If you fail to update it each billing cycle, you risk showing inaccurate progress or outdated costs. Regular updates not only make your pay applications more reliable but also demonstrate professionalism and transparency to your clients. Properly managing your Schedule of Values helps keep your billing cycle predictable and supports healthy cash flow — something every subcontractor should prioritize. You can find more guidance on project cash management through theU.S. Small Business Administration (SBA)
Simplify Your Schedule of Values with PAYearned
A well-structured Schedule of Valueskeeps your billing accurate, transparent, and aligned with project progress. Whether you’re managing one project or twenty, understanding how to build and fill out your SOV properly is the key to smooth payments.
With PAYearned, you can eliminate the stress of manual forms and focus on what really matters — quickly and professionally.
PAYearned is the #1 application for payment software and simplifies your billing process:
- Digital G702 & G703 forms
- Smart Schedule of Values tracking
- Auto-calculated retainage and work-completed percentages
- Professional export-ready PDFs
- Cloud-based document management for all your projects
No more Excel sheets or manual math. Just faster, cleaner, and compliant pay applications.
Try PAYearned free todayand simplify how you manage pay apps and schedules of values.
External links in this blog are provided for reference only. PAYearned is not affiliated with or endorsed by the American Institute of Architects (AIA) or the U.S Small Business Administration (SBA).
