How to Build a Schedule of Values from an Estimate

Building a schedule of values (SOV) from your estimate means grouping takeoff items into clear, billable lines. Each line matches how progress gets measured and paid. A clean SOV speeds approvals and cuts disputes. It also drives accurate AIA and progress pay applications.

How do you build an SOV from an estimate step by step?

Start with your accepted estimate. Organize scope into logical billing categories. Map each line to cost codes and contract value. Lock the structure before your first pay app.

• Open your accepted estimate in Werx Estimates
• Group takeoff items into billable SOV lines
• Assign cost codes and units, then set each line's value
• Confirm the SOV total equals the contract sum

How do you group estimate items into billable SOV lines?

Combine granular takeoff into lines owners can review quickly. Keep each line measurable in the field.

• Group by system or phase, like demo, framing, MEP, finishes
• Combine small materials into one line per trade to cut noise
• Keep lines where percent complete is obvious
• Mirror the scope in drawings and specs to avoid confusion

How do cost codes and units keep rollups clean?

Match SOV lines to cost codes. Then field time, POs, and invoices roll up to the right place. Job cost and billing stay in sync. See standardize cost codes and assemblies for the base structure.

• Use one standard cost-code list across all projects
• Set units (LF, SF, EA) where measurable helps approvals
• Tie field time and purchasing to the same codes
• Spot-check that estimate, SOV, and job cost reconcile

How do you set retainage and stored-materials rules?

Define both before your first submission. Consistency prevents delays and rework.

• Apply a standard retainage rate across SOV lines, often 5 to 10 percent
• State the documentation for stored materials: photos, receipts, location
• Plan carry-forward credits when stored items get installed
• Match the terms in your contract and lender requirements

How do you fit change orders into the SOV?

When scope changes, add CO lines or adjust the affected lines. Reference the approved change order clearly.

• Create a new SOV line for each approved CO, or tag adjusted lines
• Reference CO numbers on the G703 to aid review
• Apply retainage the same way on CO values
• Update budgets and cost codes right after approval

How do you validate totals and create Pay App 0?

Before the first cycle, validate the math. Then submit a Pay App 0, a zero-dollar AIA submission. It locks the structure with the owner.

• Confirm SOV total equals contract (base plus approved COs)
• Check percent-complete math and rounding on test lines
• Submit Pay App 0 (G702/G703) for baseline confirmation
• Archive approvals for the audit trail and faster reviews

When should you build a detailed SOV this way?

Build a detailed SOV on AIA jobs, lender-funded work, and long projects. The structure pays off every billing cycle. For a refresher on the basics, see what is a schedule of values.

A lighter SOV fits small private jobs. Keep enough lines to measure progress and bill cleanly.

• The owner or lender requires AIA pay applications
• The job runs more than a month or has phases
• You hold retainage and bill stored materials
• You need percent-complete tracking by line

How does Werx help you build SOVs faster?

Contractor software like Werx builds the SOV from your estimate. It ties into AIA and progress billing, change orders, and QuickBooks.

• Turn estimate groups into SOV lines in seconds
• Generate AIA G702/G703 pay applications with retainage and stored-materials fields
• Update the SOV with approved COs in one click
• Sync invoices to QuickBooks Online for clean financials

Key takeaways

• Group estimate items into clear, billable SOV lines tied to cost codes
• Define retainage and stored-materials rules up front
• Add change orders as new or adjusted SOV lines
• Validate totals and submit Pay App 0 to lock the baseline
• Werx automates SOVs, AIA-style pay apps, change orders, and QuickBooks sync