Schedule of Values (SOV)
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A Schedule of Values (SOV) is a financial document that outlines the breakdown of the contract price into individual work elements and assigns a value to each item.
- Context:
- It can (typically) be used in Construction Projects (to manage and track progress payments).
- It can (often) be prepared by a Project Contractor (and approved by the owner representative).
- It can range from being a Simple SOV Table to being a Detailed Financial Report.
- It can help ensure that payments are made based on actual work completed, not just time elapsed.
- It can be revised during the project to reflect changes in scope or unforeseen circumstances.
- It can serve as a reference for resolving payment and project progress disputes.
- It can be used to ensure transparency and accountability in project financing.
- It can aid in budgeting and financial planning for large projects.
- ...
- Example(s):
- One in a Construction Project that lists all major work components.
- One in a Highway Construction Project, detailing the costs for different project phases.
- ...
- Counter-Example(s):
- Construction Project Change Order, which documents changes to the scope of work and associated costs, rather than a breakdown of the original contract price.
- Contractor Punch List, which is a document listing work that does not conform to contract specifications that the contractor must complete before final payment.
- Payment Retention Schedule, which outlines the portion of payments withheld until the project is satisfactorily completed, ensuring all work is done as agreed.
- Cost Breakdown Section with price in a lump-sum construction contract.
- See: Progress Payment, Contractor, Architect, Construction Project, Financial Report