What is a schedule of values (SOV)?

A schedule of values (SOV) is a breakdown of a construction contract or loan budget into line items, each with a dollar value, that together add up to the contract sum. Progress billing and draw requests are measured against it line by line.

How it is used

The contractor prepares the SOV at the start of the job and the owner, architect or lender approves it. Every payment request then says how far along each line is. Because the lines add up to the contract sum, the total billed can never pass the contract without an approved change.

A lender's version is often called the budget or cost breakdown. It may also include soft costs such as permits, design fees and interest.

Worked example

LineScheduled value
Site work$35,000
Foundation$60,000
Framing$90,000
Mechanical, electrical and plumbing$110,000
Finishes$105,000
Contract sum$400,000

An approved change order adds $6,500 to the electrical scope. That line becomes $116,500 and the revised contract sum becomes $406,500. Every later draw is measured against the revised figures.

Common mistakes

  • Front-loading. Putting too much value on early lines gets cash in sooner, but lenders and owners watch for it, and it leaves too little to finish the job.
  • Lines too broad to measure. "Interior, $200,000" is hard to judge. Smaller lines make progress easy to check.
  • Forgetting general conditions. Supervision, site costs and insurance need their own line or they are never billed.
  • Not updating for change orders, so the SOV and the contract drift apart.

Related terms

  • Draw request: A draw request is a request to be paid for construction work completed during a period, sent to a construction lender or to the project owner.
  • Change order: A change order is a written amendment to a construction contract that changes the scope of work, the price, the schedule, or all three, agreed by both parties.
  • Retainage (holdback): Retainage is a percentage of each progress payment that the owner or contractor holds back until the work is complete, to protect against unfinished work and unpaid subcontractors.

Further reading