Schedule of Values (SOV)

A schedule of values is a contractor's itemized breakdown of the total contract sum, dividing it into defined scopes of work - each with an assigned value. Every payment application made during the project references it: the contractor claims for the percentage of each line completed in the period, the certifier checks each claim against site progress, and payment is released accordingly. The cumulative total of all scheduled values must always equal the current contract sum.

How a Schedule of Values Works in Practice

Before the first payment application, the contractor prepares the schedule and submits it to the employer or their representative for agreement. The document lists each work element - typically by trade, work stage, or cost code - alongside its allocated share of the contract sum. A commercial fit-out contract might include lines for: site mobilization, structural alterations, mechanical and electrical first fix, partitioning and ceilings, finishes, and external works.

Each billing period, the contractor updates the schedule. For each line, they record the value completed in previous periods, the value completed in the current period, any materials stored on site that the contract permits to be claimed before they are built in, and the resulting cumulative percentage complete. The certified total to date is deducted from the contract sum to show the balance remaining and any retention withheld.

In UK construction, the same mechanism appears as an Activity Schedule under NEC contracts, or as the contractor's analysis of the contract sum under JCT Design and Build forms. The schedule of values term is used on US-influenced commercial projects and is increasingly common on larger UK developments. Whichever name it carries, the document serves the same purpose: a pre-agreed breakdown that makes each payment application straightforward to check and certify against the contract sum.

Common Mistakes When Preparing a Schedule of Values

Front-loading is the most damaging error. It means allocating a higher value to early-stage line items than they truly represent, to generate more cash early in the project. Experienced certifiers spot it quickly by comparing scheduled percentages against visible site progress, and a schedule that has been front-loaded loses credibility for every application that follows.

Lines that are too coarse create monthly certification arguments. A single line for mechanical and electrical works forces a percentage-complete dispute on a scope that may run for twelve months. Splitting by floor, area, or work stage makes progress obvious to inspect and keeps monthly meetings short.

Failing to update for change orders compounds over time. When a variation order is approved, the schedule of values must be revised so that the scheduled values still sum to the current contract sum. A schedule that drifts from the live contract sum means every subsequent application requires manual reconciliation to close.

For contractors managing multiple live projects, a platform that links stage invoices to job values and tracks cumulative certified amounts per line - rather than rebuilding the schedule in a spreadsheet each period - keeps payment applications clean and audit-ready. Zigaflow's invoicing tools structure stage billing against agreed job values, so each application stays tied to the breakdown from day one.