How Schedule of Values Math Works
A Schedule of Values (SOV) is the master financial control document for progress payments on commercial and residential construction projects. Standardized on AIA G703 work surface sheets, an SOV allocates the total contract price across discrete scope items and tracks work completed and materials stored each month.
| Formula Component | Mathematical Calculation | Description & Purpose |
|---|---|---|
| Contract Sum to Date | Original Contract Sum + Net Change Orders | The total revised contract value including all executed change orders. |
| Total Completed & Stored | Previous Completed + Work This Period + Materials Stored | Cumulative total value of work finished and uninstalled materials stored on site. |
| Line % Complete | (Total Completed & Stored / Scheduled Value) × 100 | Percentage of completion achieved per trade line item. |
| Retainage Held | (Total Completed & Stored × Retainage Rate %) - Retainage Released | Contractually withheld security funds (typically 5%–10%) retained until closeout. |
| Earned Less Retainage | Total Completed & Stored - Retainage Held | Net earned value approved for contractor payment to date. |
| Current Payment Due | Earned Less Retainage - Previous Certificates | Net balance payable for the current billing application period. |
| Balance to Finish | Contract Sum to Date - Total Completed & Stored | Remaining unbilled contract value to complete the project. |
When GCs, Subcontractors, and Owners Use an SOV
The Schedule of Values serves as the single source of truth during monthly pay application reviews. Different project stakeholders rely on it for specific operational and financial checks:
- General Contractors: Submit monthly SOV continuation sheets alongside AIA G702 summaries to document progress, claim stored materials, and invoice project owners.
- Specialty Subcontractors: Submit trade SOVs (electrical, plumbing, HVAC, concrete, drywall) to General Contractors to justify monthly draws and track retainage.
- Project Owners & Architects: Review line-item completion percentages against physical job site progress during monthly walkthroughs before certifying payment requests.
- Lenders & Construction Inspectors: Verify draw requests against stored materials receipts and certified line items prior to releasing loan proceeds.
SOV vs. Job Estimate vs. Change Order vs. Pay Application
| Document Type | Primary Purpose | Timing | Key Output |
|---|---|---|---|
| Job Estimate | Projects expected material, labor, and overhead costs to price a bid. | Pre-contract / Bidding | Estimated total cost & target profit markup. |
| Schedule of Values (SOV) | Breaks down agreed contract sum into verifiable billing lines. | Contract Execution | Line-item price schedule totaling 100% of contract. |
| Change Order | Modifies project scope, completion timeline, and contract sum. | During Construction | Approved net adjustment ($ +/-) to contract sum. |
| Payment Application (G702/G703) | Formally requests monthly progress payment certification. | Monthly Billing Cycle | Net Current Payment Due for certified work. |
Construction Retainage Basics
Retainage is a standard US construction contract provision where the owner or general contractor withholds a percentage of each progress payment (typically 5% or 10%) until project completion. Retainage protects project owners against mechanics liens, uncorrected punch list items, and subcontractor default.
When work reaches substantial completion or final punch list sign-off, contracts often specify a partial or full retainage release. On your SOV, retainage released reduces the net retainage held and increases current payment due accordingly.
Disclaimer: Retainage statutes, maximum withholding rates, interest requirements, and prompt payment deadlines vary by state. This tool provides calculation worksheets and does not constitute legal or financial accounting advice.
Worked Example: Application #3 Calculation
Consider a commercial interior fit-out project with an original contract of $450,000 and approved net change orders of $25,000 (Contract Sum to Date = $475,000). The contractor holds 10% retainage and previously certified $185,000 in payment applications.
- SOV Scheduled Total: Sum of 7 trade line items = $475,000 (SOV Variance = $0.00 balanced).
- Total Completed & Stored: Previous Completed ($210,000) + Work This Period ($130,000) + Stored Materials ($40,000) = $380,000 (80.0% project complete).
- Retainage Held @ 10%: $380,000 × 10% = $38,000.
- Earned Less Retainage: $380,000 - $38,000 = $342,000.
- Current Payment Due: $342,000 - $185,000 (Previous Certificates) = $157,000.00.
- Balance to Finish: $475,000 - $380,000 = $95,000.00.
Frequently Asked Questions
- What is a Schedule of Values (SOV) in construction?
- A Schedule of Values (SOV) is a detailed line-item breakdown of a construction contract sum across trades, scope items, and work packages. It establishes the cost allocation used as the basis for monthly progress payment applications, retainage withholding, and tracking work completed and materials stored on site.
- How is Current Payment Due calculated on an SOV application?
- Current Payment Due is calculated by taking Total Completed & Stored to Date (Previous Completed + Work This Period + Materials Stored), subtracting Retainage Held (Total Completed & Stored × Retainage Rate % minus Retainage Released), and then subtracting Total Previous Certificates for Payment.
- What is the difference between an SOV and a Job Estimate or Change Order?
- A job estimate details projected costs before a contract is signed. A change order modifies the scope and contract price during construction. An SOV breaks down the agreed total contract sum (including net approved change orders) into billing lines used to request monthly progress payments.
- Why must the SOV scheduled total match the total contract sum?
- If the sum of all scheduled values on an SOV does not equal the current contract sum (original contract plus net change orders), the schedule is unbalanced. Project owners and architects will reject payment applications if the line item breakdown under-allocates or over-allocates the total contract value.
- Can I export this schedule of values to CSV or print it for pay applications?
- Yes. You can export your completed schedule of values to a formatted CSV spreadsheet for Excel/Google Sheets, copy a text summary, or print a clean document suitable for attaching to G702/G703 payment requests, without signup or fees.
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Disclaimer & Legal Notice
This Schedule of Values Builder is an independent planning and progress billing worksheet provided for general informational and administrative purposes. It is not an official AIA (American Institute of Architects) document. AIA® and G702®/G703® are registered trademarks of The American Institute of Architects. Useful Business Tools is not affiliated with, endorsed by, or sponsored by the AIA. Always confirm contract billing requirements with your project owner, architect, or legal counsel.