What Does SOV Stand For in Construction?

February 14, 2024

Construction projects are complex, interconnected webs of documentation, communication, and coordination. This includes a variety of contract documents such as invoices, change orders, and progress payments. One crucial document, though, is the schedule of values. While some contractors may be hesitant to share their SOV with project owners, an accurate and up-to-date SOV will help ensure that projects are being managed effectively from the start.

A schedule of values, or SOV, is a breakdown of every billable task on a construction project and the costs associated with those tasks. SOVs are used for progress tracking, cost allocation, and payment application management. SOVs vary in format depending on the specific requirements of a project and the terms of a contract, but generally they consist of tabular layouts that provide an itemized list of work items with corresponding estimated budget amounts called scheduled values. The sum of scheduled values for all work items provides the total contract value of the project.

In addition to the SOV itself, a well-structured SOV should also include sections that detail how work is being completed and the percentage of work that has been completed. This will allow project owners to accurately monitor and time payments. It will also help to mitigate claims and disputes by providing a clear record of work completed and amounts owed. It is also a useful tool for smaller projects that utilize fixed budgeting or a guaranteed maximum price contract since it will allow them to track and maintain costs throughout the entire project.

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