Schedule of Values
Also known as: SOV
A schedule of values is a breakdown of a subcontractor's total contract price into individual line items, each with its own dollar value. It is submitted after award and becomes the basis for monthly progress billing — you invoice the percentage complete of each line.
The values across all lines must add up to the contract sum. Once approved, the SOV governs how you get paid for the rest of the job, which is why it deserves more attention than it usually gets.
How an SOV drives cash flow
Because billing is per line item, how you divide the work determines how early money arrives. Material delivered and stored on site can often be billed before installation if the contract allows it, and front-end activities such as mobilization and submittals are legitimate line items. A schedule broken into a single line called "flooring" gives you no ability to bill anything until installation is well underway.
What a flooring SOV usually contains
- Mobilization, submittals, and samples
- Material by product type — carpet tile, LVT, base, tile — often split between delivered and installed
- Substrate preparation and moisture mitigation, if in your scope
- Installation, sometimes broken by floor, area, or phase
- Approved change orders, added as new lines as they occur
- Closeout: attic stock, warranties, final cleaning, punch list
Related terms
- Pay ApplicationA pay application is the monthly invoice a subcontractor submits for work completed during a billing period. It states the percentage complete of each schedule-of-values line item, subtracts retainage and previous payments, and arrives at the amount currently due.
- RetainageRetainage is a percentage of each progress payment withheld by the owner or general contractor until the work is complete and accepted. Five to ten percent is commonly seen, and it is released after substantial completion and closeout.
- Change OrderA change order is a written amendment to an existing contract that adds, removes, or modifies work, and adjusts the contract price and schedule accordingly. It applies after a contract is in place — unlike an addendum, which changes the documents before bids are due.