What is a schedule of values (SOV)?
Quick answer
A schedule of values (SOV) breaks the total contract price into individual line items, each with a dollar value, that together equal the contract amount. It is the basis for progress billing: each pay application claims a percentage of completion against these line items, so everyone agrees on how much of each scope is done and billable.
Why it matters for cash flow
How you structure the SOV affects when you get paid. Front-loading early line items (within reason and contract rules) can improve early cash flow, while an inaccurate SOV creates billing disputes that delay payment.
Frequently asked questions
Who prepares the SOV?
Usually the contractor, often subject to the general contractor's or owner's approval before the first billing.
How detailed should it be?
Detailed enough to bill accurately by stage, but not so granular that every pay application becomes a negotiation.