Schedule of Values Template for Construction: Build It Right, Bill It Right (2026)

What a Schedule of Values Actually Is

The Schedule of Values (SOV) is a line-item breakdown of every dollar in a construction contract. Each line represents a scope of work — demolition, rough framing, plumbing rough-in, electrical rough-in, drywall, tile, cabinetry, and so on — with a dollar value assigned that represents what that scope of work is worth within the total contract.

The SOV becomes the control document for every draw request on the job. When you submit a progress billing (a “draw invoice” or AIA G702/G703 payment application), you’re telling the owner: “Here are the line items, here’s the percentage I’ve completed on each since the last draw, here’s what that completion is worth, and here’s what I’m billing you for it.”

Without an SOV, progress billing devolves into: “I think I’m about 40% done, so I’d like 40% of the contract.” That approach fails inspection by any sophisticated owner, GC, or lender — and it fails you, because it doesn’t connect payment to actual work completed.

An SOV is required for:

• AIA G702/G703 payment applications
• Draw requests on construction loans (where a bank inspector must verify percentage complete against the SOV)
• Most commercial and semi-commercial residential contracts
• Any project where an owner’s representative (architect, PM, or project manager) reviews payment applications

Even on projects where it’s not contractually required, the SOV protects you. It creates a shared, agreed-upon definition of what “complete” means for each phase — eliminating subjective disputes about how much you’ve earned.

The Relationship Between SOV, Draw Requests, and AIA Billing

These three concepts are tightly linked:

The SOV is the master document — created at or before project kickoff, agreed to by both owner and contractor, listing every scope item and its scheduled value. It doesn’t change during the project except to incorporate approved change orders (which add new line items or modify existing ones).

Draw requests (or payment applications) are periodic billings — typically monthly — that reference the SOV. For each draw, you report the percentage complete on each line item and invoice for the amount earned since the last draw.

AIA G702/G703 is the standardized format for payment applications widely used in commercial and residential construction. The G702 is the cover page (total contract sum, total billed to date, retainage held, amount due this period). The G703 is the continuation sheet — the SOV itself with current-period billing and retainage columns filled in.

If you’re billing on AIA forms, you must have an SOV. If you’re doing draw-based billing for a construction lender, you must have an SOV. If your general contractor requires monthly applications, you need an SOV. In practice, any project over $50,000 is better managed with one.

How to Build a Schedule of Values From Scratch

Here’s the step-by-step process:

Step 1: Start with your detailed cost estimate. Your SOV line items should map closely to your cost codes. Each line item in the SOV should represent a distinct, observable scope of work that a third party can inspect and verify as a percentage complete.

Step 2: Assign a scheduled value to each line item. The scheduled value is not just your cost — it’s your cost plus a pro-rata share of overhead and profit. If your total markup is 20%, every line item’s scheduled value should include 20% overhead and profit embedded.

Here’s why this matters: if you list line items at cost only and your markup as a separate overhead line, you collect no profit until the final draw — and you’ve front-loaded cash flow problems in reverse. Distribute overhead and profit across all line items proportionally.

Step 3: Verify the sum equals the contract sum. Add up all scheduled values. The total must equal the total contract sum exactly. If you have a $185,000 contract, your SOV line items must sum to $185,000.

Step 4: Incorporate general conditions. Don’t forget: project management, site supervision, temporary facilities, permits, and dumpsters are real costs. They belong in the SOV as separate line items, not buried inside other work scope items.

Step 5: Get owner sign-off before the first draw. The SOV becomes the billing bible. Get the owner (and their lender, architect, or representative) to approve the SOV before you submit the first payment application. Disputes are far easier to resolve before billing starts than after.

Step 6: Add change orders as they’re approved. Each approved change order adds a new line item (or modifies an existing value) in the SOV. Your running contract sum updates accordingly, and future draws use the revised SOV.

Sample Schedule of Values — Kitchen Remodel

Here’s a sample SOV structure for a $165,000 residential kitchen remodel:

Reading this SOV:

• Draw 1 was submitted previously; items 2–7 are fully billed (100%)
• This is Draw 2: billing for drywall progress, tile start, and stored countertop materials
• Countertops (line 11) are stored materials — delivered to site but not installed. The SOV allows billing for stored materials with proper documentation (lien waiver + proof of delivery)
• 10% retainage held on all current-period billing
• Net draw this period: $17,805

What Line Items to Include in a Construction SOV

Every SOV is different by project type, but here’s the standard framework:

1. General Conditions / Supervision Project management, field supervision, site setup, temporary facilities. Spread across the project duration.

2. Demolition Selective or full demo. Separate from rough work — it’s an observable, completable phase.

3. Structural / Rough Framing Walls, floors, roof framing. Clearly inspectable by the owner or building inspector.

4. Mechanical Rough-Ins (Plumbing, Electrical, HVAC) Each should be a separate line item if the contract value is significant. Easier to verify percentage complete independently.

5. Waterproofing / Insulation Distinct phases that inspectors and owners can verify on walkthrough.

6. Drywall, Taping, and Finishing Often split: hang/tape as one line, finish coats and texturing as another.

7. Flooring and Tile By room or type if differentiated. Tile and luxury vinyl plank have different unit costs.

8. Cabinetry and Millwork High-value, highly visible. Owners track this line closely.

9. Countertops Often a stored materials line — installed after cabinets and sometimes billed when delivered.

10. Finish Trades (Plumbing, Electrical, HVAC finish) Trim-out and fixture installation. Bill when complete, not when rough is done.

11. Paint and Interior Finish Carpentry Baseboards, door casings, paint — often late-stage and tied to punch list.

12. Punch List and Final Completion A line item held until substantial completion. Keeps the owner engaged in completing the project and gives you leverage for retainage release.

13. Permits and Inspections If not carried by the owner. Separate line item — verifiable by permit record.

Common SOV Mistakes That Trigger Payment Disputes

Mistake 1: Front-loading early phases. Assigning $30,000 to demolition that actually cost $8,000 — to collect cash early — is the most common SOV dispute trigger. Owners and their architects recognize front-loaded SOVs immediately. It damages the relationship and can delay or suspend draws.

Mistake 2: Lumping everything into “Labor and Materials.” An SOV with five line items for a $300,000 project gives the owner no visibility into what you’re completing. It also makes the percentage-complete verification nearly impossible for a lender or inspector. More line items = clearer billing = faster approvals.

Mistake 3: Not including general conditions. If supervision and project management aren’t line items in the SOV, you’re giving them away — or burying them inside work items where the owner may dispute them as inflated.

Mistake 4: Ignoring stored materials. Materials delivered to the site but not yet installed can be billed as stored materials if the SOV and contract allow it. Not building this into the SOV leaves legitimate cash flow on the table.

Mistake 5: Failing to update the SOV for change orders. Every approved change order must update the SOV before the next draw. If you submit a draw that includes change order work but the SOV hasn’t been updated, the owner has grounds to reject the application.

Mistake 6: No owner sign-off on the initial SOV. If the owner hasn’t formally approved the SOV, every draw is a negotiation. Get written approval before the first draw — email confirmation is sufficient for most residential contracts.

Stored Materials: What They Are and How to Bill Them

Stored materials are construction materials that have been purchased and delivered to the project site (or an approved off-site storage location) but haven’t yet been incorporated into the work. Common examples:

• Custom cabinets delivered and stored in the garage
• Countertop slabs delivered but not yet cut or installed
• Tile ordered in full and staged on site
• Pre-fabricated structural elements awaiting installation

Standard AIA contract language (AIA A201) allows billing for stored materials when:

1. The materials are properly stored and protected
2. The contractor provides evidence of payment (invoices or lien waivers)
3. The owner and architect approve the stored materials application

To bill stored materials, add them to the relevant SOV line item in the “Materials Presently Stored” column of the G703. They count toward the completion percentage for that line item.

How RemodelFin Automates SOV-Based Draw Invoices

Building an SOV in a spreadsheet, calculating percentage complete manually, applying retainage, and formatting the AIA G703 is a 2–3 hour task per draw cycle — and the math is error-prone.

RemodelFin’s progress billing feature does this from live job cost data:

1. Enter your SOV when you create the job. Line items map directly to cost codes. Scheduled values are entered once.

2. As work is completed, job cost actuals update the percentage complete. Material receipts posted to tile → tile is X% complete. Labor hours posted to framing → framing is Y% complete. The completion percentages are driven by actual cost data, not by guessing.

3. Generate the draw invoice with one click. RemodelFin calculates the current-period billing for each line item, applies retainage, computes the net amount due, and produces a formatted draw invoice ready for the owner or GC.

4. Change orders update the SOV automatically. Approved change orders add line items and adjust the contract sum. The next draw includes the updated SOV automatically.

5. Outstanding retainage is tracked in real time. You always know how much retainage you’re owed per job — and when to request release.

Note: RemodelFin works alongside QuickBooks — when the draw invoice is paid, the payment syncs to QuickBooks for accounting. RemodelFin handles the billing and job cost layer; QuickBooks handles the books.

Building Your SOV Around Your Job Cost Estimate

The smartest approach: build your SOV and your job cost estimate simultaneously from the same line item structure. When your SOV line items match your cost codes, you get a direct comparison between billed value (SOV) and actual cost (job cost) for each phase.

This tells you the phase-level gross margin — not just the total job margin. You can see that you’re earning 28% on framing but only 12% on tile because your tile sub is running over. That’s decision-grade information you can act on.

For a complete walkthrough of AIA G702/G703 forms and how to fill them out, see our AIA billing for contractors guide. For retainage tracking, see the construction retainage guide.

Get Your First SOV-Based Draw Invoice Out the Door

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Stop rebuilding the G703 spreadsheet every draw cycle. Build your SOV once in RemodelFin and generate every draw invoice from actual job cost data going forward.

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Related guides:

• AIA billing for contractors — complete G702/G703 walkthrough
• Construction retainage guide — track and collect what you’re owed
• Change order management — update your SOV correctly with every change
• Job costing for remodeling contractors
• Progress billing features — see RemodelFin’s draw invoice tool