How a Schedule of Values Works
An SOV lists each scope item with its contract value so progress can be measured and billed accurately over time. Owners, lenders, and auditors use it to verify work against payment requests.
- Breaks the total contract into billable line items
- Tracks percent complete and earned value by line
- Feeds AIA G702/G703 and progress-billing calculations
- Supports retainage and stored-materials tracking
Why Contractors Use an SOV
Using a standardized SOV speeds approvals and reduces disputes by aligning scope, cost, and progress in one document.
- Creates transparency for owners and lenders
- Speeds pay app reviews with consistent structure
- Reduces change and retainage disputes
- Improves audit trail for financing and closeout
What to Include in an SOV (Structure)
Keep the SOV format consistent across jobs and match it to your estimate and cost codes.
- Line item description tied to cost codes
- Units/quantities and line value (or unit price × qty)
- Retainage rate/handling for each line
- Fields for previously billed, this period, and to date
Build the SOV from Your Estimate
Start with your estimate, then group items into billable SOV lines that align with how you’ll report progress and bill.
- Group related estimate items into clear SOV categories
- Map cost codes so field time and purchasing roll up correctly
- Import or create the SOV in Werx Estimates and Contract Projects
- Validate totals = contract price before first pay app
Common SOV Mistakes to Avoid
Most billing delays come from structure or math issues. Standardize your template and double-check the rollups.
- Mismatched SOV totals vs. contract sum
- Inconsistent retainage by line item
- Not carrying stored-materials credits forward correctly
- Change orders not integrated into SOV lines
How Software Simplifies SOVs
Werx streamlines SOV creation and ties it directly to AIA/progress billing, retainage, and accounting.
- Create/import SOVs and generate AIA G702/G703 pay apps
- Auto-calculate retainage, stored materials, and current due
- Manage COs and update SOV lines instantly
- Sync to QuickBooks Online for clean financials
FAQs About Schedule of Values
Is a Schedule of Values the same as a bid?
No. A bid/estimate informs pricing, while the SOV is the official billing breakdown used for progress and AIA pay applications.
Who creates and updates the SOV?
Usually the GC or prime contractor drafts the SOV for owner/architect review. It’s updated when change orders are approved.
How often should the SOV change?
Set it at contract award and update only when scope changes. Monthly pay apps should adjust percent complete, not the SOV structure.
TL;DR Recap
- SOV = contract value broken into billable line items
- Drives AIA/progress billing, retainage, and stored materials
- Build from your estimate; align with cost codes for clean rollups
- Werx automates SOVs, pay apps, COs, and QuickBooks sync
