Schedule Of Values

What Is Schedule Of Values? 

A schedule of values or SOV refers to the list of all tasks or work items related to a particular project. It also includes the cost of each item – the value of materials, the amount billed previously and in the current period, and the total.

A schedule of values helps ensure accuracy in project budgeting and cost control. SOVs are prominent, especially in the construction and real estate sectors. It is beneficial in project management and facilitates contractors and construction companies to manage their tasks efficiently. SOVs facilitate real-time communication, collaboration, and cost tracking among various stakeholders, including suppliers, contract workers, architects, and clients.

• The schedule of values is a document that lists all the work items involved in a project, including the cost of each task. It is commonly used in construction projects, infrastructure development, renovations, or software development.
• Many construction contracts, including those based on AIA forms, often recommend SOVs as a best practice for cost management and progress tracking.
• Real-time online tracking and information sharing in SOVs can be facilitated through digital project management tools or software platforms. Such tools can enhance collaboration, transparency, and accountability among stakeholders.

Schedule Of Values Explained

The schedule of values is essential in project management across various industries. It helps organize and track multiple components, facilitating effective project management and cost control.

They serve as documents that provide detailed information about a specific construction project, like design and engineering planning, painting, material procurement (e.g., bricks, cement, plaster), and labor management.

For the schedule of values in construction projects, financing costs can be high, and payments are often made in installments at regular intervals. Managing and effectively sharing these intricate details with stakeholders, including suppliers, contractors, architects, laborers, and clients, can be complex. However, SOVs enable real-time management, tracking, updating, and information sharing, making the process more efficient and less time-consuming.

Using SOVs fosters mutual trust, accountability, and a sense of responsibility among the project's stakeholders. Project managers greatly benefit from the organized structure of SOVs, which present work items chronologically. Additionally, including fields for percentage completion and retainage in SOVs makes cash management easier for contractors, allowing them to monitor and control project finances effectively.

How To Fill Out?

Let's see how to create an SOV.

Step 1 - The first step to filling out an SOV is to enter basic information before getting into the specifics. It includes details about the following:

1. Project name
2. Project/ requisition number
3. Contractor's name and address
4. Client name and address
5. Architect name and address
6. Date

Step 2 - The next crucial step is to provide specific details within the SOV, focusing on the work items involved in the project. These are the work items involved in a project. Here are the components filled out column-wise:

1. Task number
2. Description
3. Scheduled value or item value
4. Amount previously billed
5. Amount billed in the current period
6. Amount of stored materials
7. Balance amount
8. Percentage completion
9. Retainage – 10% of the completed work maintained as a deposit
10. Relevant dates

The total of these values is calculated and mentioned in the last row.

Step 3 - Consent and acknowledgment

This part includes the signature and acknowledgment of the relevant parties – contractor, architect, client, etc. However, it is not always present in most SOVs.

Most of these details are now maintained online in spreadsheets. It allows for easy modifications and online sharing. Refer to the next section for the schedule of values template.

Examples

Consider the following examples to enhance the understanding of the concept.

Example #1

Date	01/ 10/ 23
Project Name	100 ABC Avenue
Project Number	100
Contractor Name and Address	PQR LLC
Client Name and Address	LMN LLC
Architect Name and Address	XYZ LLC

No.	Date	Item Description	Item value	Amount previously billed	Amount billed in the current period	Amount of stored materials	Balance amount	Percentage completion	Retainage
01	01/ 10/ 23	Engineering and Design	$200,000	$100,000	$50,000	$50,000	-	95%	$20,000
02	01/ 31/ 23	Bricks	$150,000	$50,000	$25,000	$25,000	$50,000	75%	$10,000
03	02/ 05/ 23	Labor	$50,000	$10,000	$20,000	-	$20,000	10%	$3000
Grand Total	-	-	$400,000	$160,000	$95,000	$75,000	$70,000	-	$33,000

Example #2

PQR is a construction contractor specializing in constructing and furnishing modern, environmentally-friendly homes that minimize reliance on traditional resources like bricks, wood, and cement. Dylan and Haley, a couple planning to build their new house, have approached PQR for their construction needs.

PQR collaborates with the architect XYZ to establish an SOV for efficient project management and tracking. The SOV will assist in organizing and monitoring the various tasks and costs associated with the construction project.

Schedule of Values vs Cost-Loaded Schedule

When managing construction projects, two essential tools come into play: SOVs and the Cost-Loaded Schedule. These tools serve distinct purposes and provide valuable insights into project management and cost control. Let's understand the difference between them:

• The SOV primarily focuses on task descriptions, item values, amount billed in the current period, material costs, balance amount, retainage, and percentage completion. In contrast, A cost-loaded schedule, as the term suggests, is a timetable of all the work items involved in a project, along with the monetary value and the deadline of each task.
• While the cost-loaded schedule includes task categories, start and finish dates, total cost paid, and balance amount. The SOV provides a more detailed breakdown of task-specific information, emphasizing each task's progress and financial aspects.
• The cost-loaded schedule includes the completion date against each work item, while the SOV highlights the percentage completion and provides more granular details about the task.

Frequently Asked Questions (FAQs)

Recommended Articles

This article has been a guide to What Is Schedule of Values. Here, we explain its use in construction and real estate with its examples, how to fill it out, & comparison with cost-loaded schedule. You may also find some useful articles here -

• Construction Work in Progress
• Construction Accounting
• Construction Schedule Template