Schedule of Values - An Overview

The Schedule of Values (SOV) is a list of all billable work items covered by the project's WBS work plan. Each item is specified with its total cost, the percentage of the work completed at successive stages along the project's timeline, and the amounts to be paid on each stage as agreed upon in the contract agreement. SOV is a comprehensive cost breakdown of the scope that the general contractor or owners use to verify the work performed and to release payments. 

Linarc automatically generates periodical SOVs for the SCs and the GC depending on the completion percentages of their contracted work items and the project budget/estimates. This helps them to review the SOVs and submit them to their superiors for approval.

• The subcontractors submit their periodical SOV to the general contractor for approval before generating their invoices and payment applications for the work done during that period.
• The general contractor submits their SOVs to the owner or developer for periodical payments depending on the project completion percentages.

Workflow

Setting up the SOV

The general contractor sets up the SOV terms for each subcontractor and gets consent from them. There are two main factors in the terms.

• Frequency – Governs the time interval at which the successive SOVs are generated, for example, monthly. Also, the GC specifies the date/day to trigger the SOV auto-generation, for example, the 5th of every month.
• Retainage – The percentage of money to be deducted from the total money value of the current SOV by the payer. The retainage money is accumulated with the payer and released on project completion. The retainage is for the GC/owner to have a hold on the paid party to ensure that they complete their work on time and correctly.

Once the contractor accepts the terms, Linarc starts generating the SOV for each cycle on their behalf.

SOV Generation

Linarc auto-generates the SOV for each contractor at the specified date/day for each cycle and presents them for review and submission.

• For each contractor, the SOV module fetches the progress/completion percentage of the work items executed on that SOV period from their schedule and the field progress reports. 
• The module fetches the amounts allotted to the work items from the budget or the estimate and the cost incurred under various cost types for the billing period.
• Using these values, the module calculates the amounts to be paid for the work done in the current SOV period.
• The module also fetches the work done for change orders during the period and calculates the amounts to pay for the work for the current cycle from the approved change order estimates. 
• The SOV also indicates the amount to be withheld for the current cycle as the retainage.

The generated SOV is presented for review by the contractor. The contractor can manually edit or update the SOV, for example, the value of unused materials stocked at the site, select the work items for which they wish to solicit payments for the current cycle, etc. Once done, the contractor submits the SOV to the payment authority for approval. 

The invoices or the payment applications can follow the approved SOVs for seamless payment processes. 

See the following sections to know more:

• Set up the SOV terms - General Contractor
• Review and Accept SOV Terms - Subcontractor
• View your SOV for the current period - Subcontractor
• Submit your SOV for approval - Subcontractor
• View your SOV Logs - Subcontractor
• View Submitted SOVs - General Contractor
• Approve Submitted SOVs - General Contractor
• View Submitted and Approved SOVs - General Contractor