In any sizable construction project, clear communication about costs and progress is critical. That’s where a Schedule of Values (SOV) comes in. A schedule of values is essentially a detailed breakdown of the project’s contract price, allocating specific dollar amounts to each segment of work. In other words, it’s an itemized list of every major task or category of work and how much each is worth. Contractors, project managers, and owners use this document to track work and payments as the project moves forward. In this guide, we’ll explain what a schedule of values is, why it matters, how it fits into the payment process, and how using a free template can help you create one quickly and correctly.
What Is a Schedule of Values?
A schedule of values (often abbreviated SOV) is a foundational project management document that outlines the entire project scope in financial terms. It lists all the work activities or cost items in a project and assigns a value or cost to each. When you add up all those individual values, the total equals the overall contract price for the project. Essentially, it’s a map of the money: each line item represents a portion of the work (for example, site preparation, foundation, electrical, plumbing, etc.) and shows how much of the budget is allocated to that part of the job.
Crucially, an SOV isn’t just a static budget breakdown – it’s used as a working tool throughout the project’s lifespan. Contractors and subcontractors reference the schedule of values every time they bill the client for work completed. In practice, the SOV serves as the basis for progress billing (also known as payment applications) on construction projects. Each billing period (often monthly), the contractor will indicate how much of each listed item has been completed and how much money is being requested for that portion. This way, the schedule of values ties completed work to payments due, step by step.
Where Does the Schedule of Values Fit in the Payment Process?
The schedule of values plays a central role in the construction payment process. It is usually prepared at the very beginning of a project – often right after the contract is signed – and must be agreed upon by all parties before any invoices are submitted. In fact, on many jobs the SOV is a required contract document that the owner or architect must approve prior to the first payment application. This makes sense: everyone needs to agree on the breakdown of costs at the outset so that there’s a clear plan for how payments will be calculated as work progresses.
Once approved, the schedule of values becomes the framework for every progress payment on the project. When a contractor submits a payment request (for example, an invoice or an AIA-style pay application), it references the SOV line items. The contractor will show, line by line, the percentage of each item that has been completed to date, the amount previously billed, and the amount currently being billed for that item. The owner or project manager uses this to verify the work in place and the corresponding payment due. Because the SOV was agreed upon early, there is a shared reference point that makes reviewing and approving pay applications much smoother and less prone to disputes. In short, the schedule of values acts as a financial roadmap for the project, guiding payments in an orderly, transparent way from start to finish.
What Is Included in a Schedule of Values Template?
Since a schedule of values is usually presented as a table or spreadsheet, a good template will have a structured format with several key columns. Most SOV templates include the following information for each work item or task :
- Item Description: A brief description of the work or cost item. This could be a trade (e.g. Concrete, Framing, Plumbing) or a project phase or any definable part of the job. Each line of the SOV focuses on one specific portion of the work . Often, items are listed in the order they will be completed or in logical groupings (mirroring the construction schedule).
- Scheduled Value (Cost): The total agreed cost for that item of work. This is the portion of the overall contract price assigned to this specific task. For example, if the foundation work is $20,000 and framing is $50,000, those amounts would be the scheduled values for those line items. The sum of all the scheduled values in the SOV should equal the total contract amount.
- Previous Billings (Paid to Date): A column showing how much money has already been billed and paid for that item in prior payment periods. Initially, this is $0 for all items. As the project progresses and invoices are submitted, this column accumulates the amounts that have been paid for each scope of work up to the last billing cycle.
- Work Completed (This Period): The amount being billed for the work performed during the current payment period (e.g. the current month) for that line item. This, in effect, is the new charge the contractor is asking for in the latest invoice for that particular item. It might be entered as a dollar amount for the work put in place during the period.
- Percentage Complete: Often, the template will also show the percentage of that item that is finished so far . This can either be calculated from the dollars (for example, if $5,000 out of a $10,000 item is billed to date, it’s 50% complete) or entered based on reported progress. This column gives a quick visual sense of how far along each component is.
- Remaining Balance: Based on the scheduled value minus what’s been billed to date, the template may display the balance to finish for each item. This tells everyone how much cost is left on that line item before it’s fully paid (and presumably fully complete). It’s essentially the future work value remaining for that task.
- Retainage: Many construction contracts withhold a small percentage of each payment as retainage until the end of the job (to ensure work is completed properly). A robust schedule of values form will have a column noting any retainage withheld for each line item. For instance, if the standard retainage is 10%, and $5,000 is being billed this period for an item, $500 might be held back as retainage. The SOV will track these holdbacks so that they can be released later, typically at project completion or as otherwise agreed.
All these columns together make the schedule of values a comprehensive financial snapshot of the project at any point in time. A good SOV template will usually come in a spreadsheet (Excel) or form format and have formulas built in to calculate things like percentages and remaining balances automatically. Typically, the template will also have a place for general project information at the top (project name, address, contractor, etc.) and maybe signature lines if it’s intended to be signed with each payment application. By including all the standard fields in a clear layout, the template ensures that you don’t overlook any important details when preparing your schedule of values.
EXAMPLE
Project name: XYZ Towers
Contractor: EFG Limited
Client name: John K. Lemon
Start date: 19/3/2025
Completion date: 23/12/2025
| Item no | Work description | Estimated cost ($) | Actual cost ($) | Completion (%) | Payment due ($) | Payment date | Approved by |
|---|---|---|---|---|---|---|---|
| 1 | Site preparation | 60,000 | 50,000 | 100% | 50,000 | 19/3/2025 | Client |
| 2 | Foundation | 100, 00 | 80,000 | 70% | 80,000 | 1/4/2025 | Client |
| 3 | Framing | 120,000 | 100,000 | 50% | 100,000 | 20/4/2025 | Client |
| 4 | Roofing | 60,000 | 50,000 | 60% | 50,000 | 10/5/2025 | Client |
| 5 | Electrical and plumbing | 120,000 | 80,000 | 50% | 80,000 | 15/6/2025 | Client |
| Total | 460,000 | 360,000 | 360,000 |
Approval Section
Contractor signature: __________________ Date: ____________________
Client signature: ______________________ Date: _____________________
Free Templates
Related: 40 Free Employee Schedule Templates [Excel – Word]
Using a free template (like the ones provided on our site) also means you don’t have to purchase specialized forms or software just to create a schedule of values. Standard contract forms (such as those from professional organizations) can be expensive or require subscriptions, and designing a custom form can take a lot of trial and error. A free downloadable template gives you a ready-to-use solution at no cost. You can customize it as needed for your project, but the core structure is already in place. In short, starting with a template lets you focus on the important content – the actual numbers and tasks – rather than on formatting. It’s a smart way to ensure accuracy and save time.
Conclusion
A schedule of values is more than just a paperwork formality – it’s a vital tool for managing project finances and building trust through transparency. It spells out the entire job in black and white, linking each dollar amount to a defined piece of work. This helps everyone involved know what to expect and reduces the likelihood of payment disputes or budget overruns . For contractors, an accurate SOV means smoother billing and better cash flow. For owners, it means clear insight into where their money is going and assurance that they’re paying for real, measurable progress.
If you’re preparing a schedule of values, using a free template can simplify the process and give you confidence that nothing is overlooked. Rather than reinvent the wheel, you can download a ready-made SOV template (in Excel or similar format) and tailor it to your project’s needs. The template will provide the logical structure – you just fill in the blanks with your project’s specific items and costs. The result is a professional, organized schedule of values that you can use to keep your project’s financials on track from day one.
By taking advantage of the free schedule of values templates available here, you’ll be setting up your project for success – ensuring clarity, fairness, and efficiency in the payment process. With a solid SOV in hand, you and your stakeholders can move forward with confidence, knowing everyone is on the same page regarding the work to be done and the value of each part. It’s one small step that yields big benefits in managing any construction project’s budget and payments. Enjoy the templates, and happy building!
About This Article
