Generate Contract Based Planned SOV

Modified on Wed, 17 Sep at 1:04 AM

Linarc provides contractors with a comprehensive view of the Planned Schedule of Values (SOV) across the entire project life cycle. This allows contractors to anticipate monthly completion percentages, their corresponding monetary values, and projected cash flows. With these insights, they can forecast risks, plan financial commitments, and maintain tighter control over project finances.

The Planned SOV module:

Extracts budget allocations for tasks, deliverables, activities, and other WBS-based work items, along with their planned execution timelines, from the project’s schedule.
Calculates planned progress percentages for each month based on the duration of each task.
Factors in working days and site holidays to ensure realistic projections.
Compiles the data into a detailed Planned SOV Report, breaking down cost values and projected payments for each contract line item across successive months, spanning the full project timeline.

The Planned SOV can be shared with the paying party (typically the general contractor or the project owner) to serve as a financial baseline. It provides them with visibility into the anticipated payment requests for each contract line item across successive months, enabling better cash flow forecasting and financial planning.

For contractors, the Planned SOV is equally valuable. It allows them to compare actual expenditures against the planned values, monitor overall project health, anticipate potential risks, and make informed budgetary decisions to stay in control of project finances.

Within the Planned SOV screen under the Contract menu, contractors can:

Initiate a system-calculated Planned SOV that dynamically updates whenever funds are allocated from contract line items to scheduled tasks.
Manually adjust the anticipated payment percentages for each month at the contract line-item level, where needed, overriding the system-calculated values.
Lock the Planned SOV once finalized to establish a baseline for performance tracking.

Any revisions arising from approved change orders are automatically incorporated, ensuring the SOV always reflects the most current project scope and funding.

Generate the Planned SOV

Ensure you are on the 'Planned SOV' screen. If not:
- Click the app launcher icon in the top-right, and select "Finance" from the drop-down
- Click 'Contract' at the top, then select 'Planned SOV' from the options on the left
Click the 'Generate' button on the top right

Linarc automatically generates the Planned SOV for the project. It displays the cumulative projected completion percentages of the work items linked to each contract line item, along with their corresponding monetary values for each month.

The table consists of the following columns:

Cost Code – The unique code assigned to the work item in the contract, typically the CSI MasterFormat code.
Task Name – The label or description of the work item.
Division Code – The standardized numerical code representing the discipline of work, as per CSI MasterFormat. Applicable only if your company’s cost codes are aligned with the CSI MasterFormat.
Division Name – The descriptive name of the discipline of work.
Total Contract– The overall contract value.
- Percentage (Contract) – The share of the work item’s cost value in relation to the total contract value.
- Amount (Contract) – The actual monetary value tied to the work item in the contract.
Total Allocation
- Percentage – The fraction of the contract line-item value allocated to scheduled tasks, represented as a percentage of the total line-item amount.
- Value – The cumulative monetary value allocated from the contract line item to scheduled tasks to date.
Total Monthly % – The sum of anticipated payments across the months during which the tasks linked to this contract line item are scheduled to take place.
Monthly Values
- Percentage – The portion of the contract line-item value anticipated as billable for the month. This is system-calculated from the aggregated planned completion percentages of the tasks linked to the contract line item. You can manually adjust this percentage if needed.
- Value – The corresponding monetary amount of the expected payment for the month, based on the applied percentage.

Search, filter and sort options:

Use the 'Search' box located at the top left to find an item using any value from the table as search criteria
Hover over a column header and use the sort icon to sort the table in ascending or descending order of the entries in that column
Right-click the column header and customize the display and order of the columns as you wish
The options at the top right allow you to filter the entries, and manage personalized and customized views of the table. Use the links below to learn more about these:

View Groups and Subtotals

You can get totals and subtotals of numerical data for any selected set of records by grouping and applying nested grouping. Use the icon at the top right to organize the data by column headers.
The system automatically aggregates relevant numerical values, giving a structured breakdown and a clear view of the grand total distribution. See Group and Organize Items in a List View for more details

Download as Excel Sheet

Click the button at the top right to save a local copy of the list in Excel format for sharing and record-keeping. See Download List Views and Logs in Excel Format for more details.

Adjust the Anticipated Payments

The Planned SOV calculates anticipated monthly payments based on task timelines and the projected completion percentages of the scheduled tasks linked to each contract line item. When needed, you can manually adjust the expected payment for any month by modifying the share percentage of the corresponding contract line item.

To change the planned monthly payments

Directly edit the value in the percentage (%) column for the required contract line-items for the required months
Ensure that the total of the distribution of the payments for a line-item across the spanning months is 100%, as indicated in the 'Total Monthly %' column

The Cost Code column shows an alert message until the total becomes 100%. You can change these values until the planned SOV is locked.

Lock planned SOV

The finalized Planned SOV can be locked and shared with the paying party as a notice of expected monthly payments.

To lock the Planned SOV

Click the 'Lock' button on the top right.

The Planned SOV is protected from any inadvertent changes. Any revisions to the contract effected by the approved change orders are reflected in the planned SOV seamlessly.