Cost-loaded schedule of values, and why it isn't a statement of values.
A schedule of values splits the contract sum into lines the owner pays against each month. A cost-loaded schedule goes further and assigns those dollars to schedule activities, so progress payments follow the schedule. Built well from the estimate, it gets you paid on time. Built carelessly, it gets pay applications rejected.
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- SOV basics
- Cost loading
- SOV vs. statement of values
SOV, cost-loaded SOV and cost-loaded schedule
Three things often get called the same name:
| Term | What it is | Used where |
|---|---|---|
| Schedule of values (SOV) | Contract sum broken into billable lines, used on AIA G702/G703 pay applications | Most private and many public jobs |
| Cost-loaded SOV | SOV whose lines are built from, and reconcile to, the estimate's cost structure (labor, material, equipment) | Jobs where the owner or GC wants line-level cost visibility |
| Cost-loaded schedule | Contract value assigned to CPM schedule activities, so earned value and payment follow schedule progress | Federal (USACE/NAVFAC), large public and some private work |
On a cost-loaded schedule job, the schedule is the pay application basis. USACE's UFGS 01 32 01.00 10 says the schedule determines contract earnings each period, and the activities coded to each contract line item (CLIN) must add up exactly to the CLIN value.
Start from the estimate, not from a blank sheet
The SOV should be a re-cut of the estimate, organized the way the work will be installed and inspected:
- Pick a structure that matches billing reality. By building or area, then floor, then system. For an electrical contractor: site, underground, gear, feeders, rough-in by floor, fixtures by floor, low voltage, fire alarm, closeout.
- Split labor and material where it helps you get paid. Material for long-lead equipment gets its own line so it can be billed as stored.
- Distribute general conditions, overhead and profit. Most SOVs spread markup proportionally across lines. Some owners want general conditions as a separate line billed monthly over the duration.
- Keep closeout real. Owners often require closeout lines: as-builts, O&M manuals, training, punch list.
- Reconcile to the penny. The SOV total must equal the contract sum, and your internal mapping should show how each estimate line rolls into each SOV line.
Worked example: an electrical subcontract SOV
A $1,850,000 electrical subcontract on a three-story office building (illustrative):
| Item | Description | Scheduled value |
|---|---|---|
| 1 | Mobilization, submittals, permits | $37,000 |
| 2 | Underground and slab conduit | $96,000 |
| 3 | Switchgear and distribution, material | $310,000 |
| 4 | Switchgear and distribution, labor | $88,000 |
| 5 | Feeders | $142,000 |
| 6 | Rough-in, Level 1 | $151,000 |
| 7 | Rough-in, Level 2 | $151,000 |
| 8 | Rough-in, Level 3 | $151,000 |
| 9 | Lighting fixtures, material | $264,000 |
| 10 | Trim and fixture install, all levels | $198,000 |
| 11 | Fire alarm | $122,000 |
| 12 | Low voltage pathways | $58,000 |
| 13 | Testing, commissioning | $37,000 |
| 14 | Closeout: as-builts, O&M, training | $27,750 |
| 15 | Punch list | $17,250 |
| Total | $1,850,000 |
Separate gear and fixture material lines let you bill stored materials once they're delivered and documented. Mobilization at 2% is easy to defend; 10% would look like front-loading.
Front-loading: the line owners watch
Front-loading means overvaluing early work to get paid ahead of earned value. Architects and owners review SOVs for it, and federal specs prohibit it. UFGS 01 32 01.00 10 requires cost loading to be reasonable and without front-end loading, prohibits negative cost loading, and sets minimum values for closeout activities: punch list correction at least 1% of contract value, as-builts at least the greater of $35,000 or 1% (up to $200,000) when there's no separate CLIN, and O&M manuals at least $20,000.
Even on private work, the safest SOV is one you can defend line by line from the estimate. A rejected SOV delays the first pay application, which is the one cash flow depends on.
How the pay application uses it
On an AIA G703 continuation sheet, each SOV line carries:
- C: scheduled value
- D: work completed from previous applications
- E: work completed this period
- F: materials presently stored (not in D or E)
- G: total completed and stored to date (D + E + F), with percent complete (G ÷ C)
- H: balance to finish (C − G)
- I: retainage, if it varies by line
The G702 application summarizes it, applies retainage and subtracts previous certificates. Approved change orders are added as their own lines, not blended into the original scheduled values.
Cost-loaded schedule specifics
On a cost-loaded CPM schedule:
- Every cost-loaded activity needs a measurable completion basis. "Rough-in Level 2" is fine; "electrical work" isn't.
- Activities should be small enough that percent complete is believable, but not so small the schedule becomes unmanageable.
- The schedule data date must match the pay period.
- Update percent complete honestly. Overstated progress triggers payment disputes and erodes trust in the schedule.
- If the owner directs schedule revisions and they aren't incorporated, UFGS allows the contracting officer to withhold 10% of pay requests until they are.
Retainage and stored materials
- Retainage is set by the contract and often limited by state statute, especially on public work. Five to ten percent is common, and some contracts reduce it at 50% completion. Read the contract and the state prompt-payment law.
- Stored materials usually require invoices, proof of insurance, and storage on site or in an approved bonded warehouse. Some owners won't pay for off-site storage at all. Ask before you build the SOV around it.
Schedule of values vs. statement of values
| Schedule of values | Statement of values | |
|---|---|---|
| Field | Construction billing | Property insurance |
| Purpose | Break the contract sum into billable lines | List insured values by location |
| Prepared by | Contractor | Property owner or insured, for the insurer or broker |
| Contents | Work items, scheduled values, percent complete | Addresses, building, contents and business income values, construction class |
If an owner or broker asks for a "statement of values" for builder's risk or property coverage, that's an insurance exercise. Your pay application uses a schedule of values.
Common mistakes
- An SOV that doesn't reconcile to the estimate, so nobody can tell whether a line is over- or under-billed.
- One big "material" line that can't be billed until everything is installed.
- Closeout lines so small that nobody bothers finishing closeout.
- Change orders blended into original lines.
- A GC's SOV template with lines that don't match how the trade installs work. Ask to adjust it early.
Where RenderDraw fits
An SOV is easier to build when the estimate is already organized by area, floor and system with quantities tied to their source. RenderDraw keeps each takeoff row linked to its sheet and location and structured for review, so rolling the approved estimate into SOV lines takes less rework.
Where RenderDraw fits: the counting, with your review.
Speed is easy to promise. Defensible numbers are the job, so RenderDraw keeps the estimator in control of every quantity that gets priced.
- Source on every row. Each quantity keeps its source sheet, location and reviewer decision.
- Lowest confidence first. The review queue shows the drawing tile with the detection highlighted and the extracted value.
- Uncertain items flagged, not hidden. Anything the AI can't confirm goes to the estimator rather than being guessed.
- Nothing priced before approval. Rows move on to pricing only after they are accepted.
Questions estimators ask
What is a cost-loaded schedule of values?
A schedule of values whose line items carry costs that tie to the estimate and, in a cost-loaded schedule, to individual CPM schedule activities. Progress payments are then calculated from the activities' percent complete rather than from a separate spreadsheet.
How is a schedule of values different from an estimate?
The estimate is your internal cost build-up with labor, material, equipment, overhead and profit. The SOV is the owner-facing breakdown of the contract sum into billable lines, usually with markup distributed into the lines. The two should reconcile exactly.
What is front-loading and why does it matter?
Front-loading is putting more value on early lines (mobilization, rough-in) than the work is worth to get paid sooner. Owners and architects review SOVs for it and can reject them. USACE's UFGS 01 32 01.00 10 explicitly requires cost loading to be reasonable and without front-end loading.
How do stored materials get paid?
On AIA G703 continuation sheets, materials presently stored go in their own column. Most contracts require proof of ownership, insurance and storage on site or in a bonded warehouse. Expensive long-lead items like switchgear or structural steel are worth separate SOV lines so they can be billed as stored.
How much retainage is typical?
It depends on the contract and state law. Five to ten percent is common, many states cap retainage on public work, and some contracts reduce it after 50% completion. Read the contract and the state's prompt-payment statute.
Is a schedule of values the same as a statement of values?
No. A schedule of values is a construction billing document. A statement of values is an insurance document listing property values by location, such as building, contents and business income, used to set coverage. They share the acronym SOV and get confused.
Can RenderDraw help build an SOV?
RenderDraw keeps quantities tied to their source sheets and structured by area and system, which makes it easier to roll an estimate into SOV lines that match how the work will be installed and billed.
See what the AI reads on your own drawings.
Send one representative trade plan set. RenderDraw reviews it and follows up with what the AI extracted and what it flagged for review. Your files remain private while the request is assessed, and there is no obligation.
- Upload the plan set, legends and schedules, the spec sections for your scope and any addenda.
- RenderDraw reviews the set and the scope you want tested.
- We follow up with extracted quantities, flagged items and next steps.
Related tools and guides
Keep reading on renderdraw.com
Sources and further reading
- AIA Contract Documents: Instructions for G703–1992, Continuation Sheet
- UFGS 01 32 01.00 10 Project Schedule (WBDG, PDF)
- USACE master guide specification 01 32 01 (PDF)
Figures marked as rules of thumb are starting points, not standards. Check the current edition of any code or standard your project specifies, and use your own historical production rates where you have them. Sources checked 2026-11-01.