A construction schedule of values (SOV) is important for managing cash flow, a critical project component that becomes more crucial the larger the venture is. In addition to assisting with project progress tracking, an SOV can ensure that everyone is paid on time.

Even if you’ve managed to avoid creating one, the more your construction firm expands and takes on larger, complex projects, the more vital it is to have one. Lacking a schedule of values in construction (or alternatively, having one that isn’t completed correctly) can result in cash flow difficulties throughout the project’s life cycle, which can stall progress and cause significant delays.

Knowing what an SOV is, how to use it, and what to include is a necessity for the project’s success.

A schedule of values in construction is a central document used and accessed by key stakeholders (i.e., general contractors, subcontractors, and property owners) that functions as a comprehensive breakdown of contract costs and a way to track project progress.

It lists the expenses of every billable work item along a timeline, as well as the percentage of work that’s been assigned and performed.

Before construction begins, a general contractor creates a schedule of values, assigning costs for every item of work while listing the project phase in which the job will be performed. All parties must agree and sign the document to indicate that they understand and approve of the SOV’s details.

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