Getting Paid

What is a Schedule of Values (SOV)?

The SOV is the foundation of every pay app. Learn what it is, why it matters, and how to build one that gets approved.

5 min read

A Schedule of Values (SOV) is a document that breaks your total contract amount into line items — one for each major piece of work you're going to perform. Think of it as a budget your GC and owner can see, organized by trade or phase. Every time you submit a pay application, you're saying 'here's how much of each line item I've completed this month.'

Why it matters

Without an SOV, there's no agreed-upon framework for how you get paid. The GC has no way to verify your progress, and you have no documentation to back up your request. A well-built SOV protects both sides — it sets expectations upfront and makes the payment process smoother from start to finish.

How to build one

Start with your contract amount. Break it into logical phases or work categories — for example: mobilization, rough framing, windows and doors, insulation, drywall, paint, punch list. Assign a dollar value to each line item. Those values must add up exactly to your contract total. Keep line items broad enough to be manageable but specific enough to reflect real milestones. Avoid front-loading — putting too much value in early line items to get paid faster. GCs and owners watch for this and it can damage trust.

Front-loading: what it is and why to avoid it

Front-loading means assigning inflated values to early-phase work items so you collect more cash early in the project. For example, listing mobilization as 15% of your contract when it realistically represents 3% of the work. This is a red flag for experienced GCs and owners. Beyond damaging relationships, it can expose you to disputes and clawbacks later in the project when your remaining contract balance doesn't match the work left to complete.

Tips for getting your SOV approved quickly

Submit your SOV before or at the project kickoff meeting, not at your first pay app. Use the same line item names your GC uses in their own budget if possible — it makes review easier. Keep the number of line items reasonable — 8 to 15 is usually right for most subcontracts. More than 20 creates unnecessary back-and-forth.

This is general educational information, not legal or financial advice. Consult a construction attorney or your GC for requirements specific to your contract and project.

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