Step-by-Step: Build an SOV from an Estimate
Start with your accepted estimate, organize scope into logical billing categories, then map each line to cost codes and contract value. Lock the structure before your first pay app.
- Export or open your accepted estimate in Werx Estimates
- Group takeoff items into billable SOV lines
- Assign cost codes and units; set each line’s value
- Confirm the SOV total equals the contract sum
Group Estimate Items into Billable SOV Lines
Combine granular takeoff into SOV lines that owners can review quickly and you can measure consistently in the field.
- Group by system/phase (e.g., Demolition, Framing, MEP, Finishes)
- Combine small materials into one line per trade to reduce noise
- Keep lines measurable in the field (percent complete is obvious)
- Mirror the scope shown in drawings/specs to avoid confusion
Align Cost Codes & Units for Clean Rollups
Matching SOV lines to cost codes ensures field time, POs, and invoices roll up to the right place—so job-cost and billing stay in sync.
- Use a standard cost-code list across all projects
- Set units/quantities (LF, SF, EA) where measurable helps approvals
- Tie field time and purchasing to the same codes
- Spot-check that estimate → SOV → job cost all reconcile
Set Retainage & Stored Materials Rules
Define how retainage and stored materials will be handled before the first submission. Consistency prevents delays and rework.
- Apply a standard retainage rate across SOV lines (e.g., 10%)
- Clarify documentation for stored materials billing (photos, receipts, location)
- Plan carry-forward credits when stored items are installed
- Match terms in contracts and lender requirements
Incorporate Change Orders into the SOV
When scope changes, add CO lines or adjust affected SOV lines with clear references to the approved change order.
- Create new SOV lines for each approved CO or tag adjusted lines
- Reference CO numbers on G703 to aid review
- Apply retainage consistently on CO values
- Update budgets and cost codes immediately after approval
Validate Totals & Create Pay App 0
Before the first billing cycle, validate math and submit a “Pay App 0” (zero-dollar submission) in AIA format to lock the structure with the owner.
- Confirm SOV total = contract (base + approved COs)
- Check percent-complete math and rounding on test lines
- Submit Pay App 0 (G702/G703) for baseline confirmation
- Archive approvals for audit trail and faster reviews
Build SOVs Faster in Werx
Werx streamlines SOV creation from your estimate and ties it into AIA/progress billing, change orders, and QuickBooks sync.
- Import estimate groups into Contract Projects as SOV lines
- Generate AIA G702/G703 pay applications with retainage and stored-materials fields
- Update SOV with approved COs in one click
- Sync invoices to QuickBooks Online for clean financials
FAQs About Building an SOV
How many lines should an SOV have?
As many as needed for clarity and measurability—often 30–80 lines on typical projects. Combine minor items, but keep lines that the field can measure easily.
Can I change the SOV after contract award?
Only with approved change orders. Keep the structure stable; add CO lines or adjust impacted lines so billing and job-cost reports remain consistent.
What is Pay Application 0 (Pay App 0)?
A zero-dollar submission that establishes the SOV and formatting with the owner/lender before billing begins. It reduces first-cycle rejections and speeds reviews.
TL;DR Recap
- Group estimate items into clear, billable SOV lines tied to cost codes
- Define retainage and stored-materials rules up front
- Integrate change orders as new or adjusted SOV lines
- Validate totals and submit Pay App 0 to lock the baseline
- Werx automates SOVs, AIA pay apps, COs, and QuickBooks sync
