By Adam Hicks, CooperBuild AI · November 4, 2026

A schedule of values in construction is a line-by-line breakdown of the contract sum into pieces of work you can measure, and it's the document every progress payment is billed against. Build it from your estimate, keep each line tied to work the owner or GC can see in place, make the lines add up exactly to the contract, and add approved change orders as new lines instead of editing old ones. Get the schedule of values right before the first pay application and most billing fights never start.

Below is how to build one, how much detail to use, how to handle front-loading, stored materials and retainage, and the mistakes that get pay apps kicked back.

#What is a schedule of values in construction?

A schedule of values (SOV) splits the signed contract price across the parts of the job. Each line has an item number, a description of the work, and a scheduled value. Every month you report percent complete on each line, and that becomes your progress billing.

The owner, lender or GC uses it to check that what you bill matches what's been built. On federal fixed-price work, FAR 52.232-5 (opens in a new tab) requires each progress payment request to include "an itemization of the amounts requested, related to the various elements of work required by the contract," plus amounts for each subcontractor. Private contracts usually say something similar in the payment section of the spec book.

The SOV isn't an invoice and it doesn't prove work is done. It's the agreed structure for measuring progress. Your pay application and continuation sheet are built on top of it each month. Our pay application guide walks through that monthly step.

#How do you build a schedule of values from your estimate?

Start with the estimate that won the job, not a blank spreadsheet. Then:

1. Read the contract first. Check the required format, cost codes or divisions, who approves the SOV, and when it's due. Some owners require a specific line structure.
2. Group estimate items into billable lines. Map your cost codes into SOV lines and keep that mapping written down. A commenter in an r/estimators thread on schedules of values (opens in a new tab) recommends a fixed mapping from estimate cost codes to SOV buckets "so revisions don't destroy the audit trail."
3. Cover the scope exactly once. No double counting and no gaps. Exclusions stay out.
4. Give each line a way to measure it. Installed quantity, a finished milestone, or a reviewed percentage. If nobody can tell what 60% of a line looks like, it's the wrong line.
5. Tie out the total. The lines must add up to the current contract sum to the penny. Pending changes stay off until they're approved.

For a GC, the SOV usually follows your subcontracts and self-performed scopes, plus general conditions, insurance, bonds and fee. That way each sub's billing rolls straight into yours.

#How many lines should a schedule of values have?

Enough that each line completes in a way people can verify, and not so many that updating it becomes a monthly chore.

Too few lines, and you argue percentages every month. One "Install drywall, $180,000" line means a debate about whether you're at 40% or 45%. Split it by floor or area and phase (hang, tape, finish), and lines start hitting 100% cleanly.

Too many lines, and you spend the pay app meeting arguing over small amounts. One electrical estimator in the same r/estimators thread suggests 12 to 20 lines for a typical subcontract, warning that going thinner invites a fight over every percentage. Treat that as one contractor's rule of thumb, not a standard. Match the detail to the job's size and to what the owner's reviewer will actually check.

#Should you front-load a schedule of values?

A little, if it's defensible. Front-loading means putting more value on early lines so cash comes in sooner. It's common because retainage and slow pay squeeze a contractor's cash early in a job.

The line you can't cross is inflating lines that don't reflect real early costs. Reviewers compare SOV values to bid breakdowns, and an inflated SOV slows down every pay app that follows. In an r/Construction thread on how GCs build SOVs (opens in a new tab), a scheduler on federal work said they front-load "within reason," because concrete placed early is worth more than concrete placed late, while keeping a normal S-curve.

Defensible front-loading looks like this:

• Real mobilization, bonds, insurance and submittal costs on their own lines
• Engineering and shop drawings valued at what they actually cost
• Long-lead equipment broken out so it can bill when it's delivered and accepted

There's also a back-end risk. Front-loaded billing often shows up as overbilling on your WIP report. That cash has to be there to finish the job. Our construction WIP report guide covers how to read that.

#How do stored materials and retainage work on the SOV?

Stored materials. If you'll buy major equipment early (switchgear, rooftop units, elevators, storefront), give it its own line or split material from labor. Most contracts only pay for stored materials with documentation, such as invoices, proof of insurance, and sometimes a bill of sale or proof of title. Under FAR 52.232-5, material stored off site is only considered when the contract allows it and you show you own it. Check your contract's stored-materials clause before you set up these lines.

Retainage. Retainage is withheld from each progress payment, usually as a percentage of work completed and stored. It doesn't change the scheduled values. But if retainage drops at a milestone, or a few lines carry a different rate, clean lines make that much easier to track. See our retainage guide for rates, release and state rules.

Closeout. Give closeout its own line, covering O&M manuals, as-builts, warranties, training and punch. If closeout is buried in other lines, you can hit 100% billed with unpaid work left. That makes the final payment harder to collect.

#How do change orders affect the schedule of values?

Add each approved change order as a new line, with a negative value for a deductive change. Don't change the value of an existing line mid-job. Editing original lines breaks the trail between the contract, the SOV and every pay app already approved, and it's one of the fastest ways to get a pay application rejected.

Keep pending and disputed changes in a separate change order log until they're approved. Our change order process guide covers how to get them there faster.

#What are the most common schedule of values mistakes?

• Lines that don't match the work. If the field tracks progress by floor and the SOV is by trade, every pay app becomes a translation exercise.
• Totals that don't tie. A small rounding difference can get a pay app sent back.
• Rebuilding the SOV in a separate spreadsheet. When billing lives apart from the estimate and the budget, the numbers drift and someone re-keys them every month.
• No closeout or retainage plan. Both decide when the last dollars actually arrive.
• Sub SOVs that don't roll up. If your subs' lines don't map into yours, reviewing their pay apps against your own takes far longer than it should.

#Where CooperBuild AI fits

Most SOV problems come from building the same scope three times: once in the estimate, once in the job budget and once for billing. CooperBuild AI keeps estimating, job budgets, change orders, pay applications and built-in accounting (GL, AP and AR) in one system, so billing starts from the scope you sold instead of a fresh spreadsheet. It connects to QuickBooks Online if that's where your books are today, and it supports online payments through Stripe. If you're still rebuilding your SOV by hand every job, get started with free credits, no credit card needed.

#FAQ

#What is a schedule of values in construction?

A schedule of values is a breakdown of the contract sum into line items, each with a description and a dollar value. Contractors report percent complete on each line every month, and that becomes the basis for progress billing.

#Who prepares the schedule of values?

The contractor who is billing prepares it. The GC prepares one for the owner, and each subcontractor prepares one for the GC. The owner, architect, lender or GC then reviews and approves it before the first pay application.

#How detailed should a schedule of values be?

Each line should complete in a way the reviewer can verify, such as by area, floor, phase or major piece of equipment. Too few lines lead to percentage disputes, and too many make monthly updates slow. Follow any format the contract requires.

#Is front-loading a schedule of values allowed?

Modest front-loading tied to real early costs, such as mobilization, bonds and submittals, is common. Inflating early lines beyond actual costs can get the SOV rejected and creates overbilling that has to be covered later in the job.

#How do you add a change order to a schedule of values?

Add each approved change order as its own new line, using a negative value for a deductive change, and leave the original lines unchanged. Pending changes stay in a separate log until they are approved.