What Is a Schedule of Values? How It Drives Every Payment on a Construction Job
A schedule of values is an itemized list that splits the whole contract price into the parts of the work: demolition, framing, electrical, plumbing, finishes and so on, with a dollar value on each line that adds up to the contract sum. Those lines are hard costs; design, permits and fees are the soft costs. The contractor prepares it at the start of the job, and every month afterward it is the yardstick for payment: the contractor bills the percent of each line that is done, minus retainage. On AIA contracts it lives on the G703 continuation sheet that goes with each G702 payment application.
| Column on the G703 | What it shows |
|---|---|
| Description of work | The line item: a trade or part of the job |
| Scheduled value | That line's share of the contract sum |
| Work completed: previous and this period | What was billed before, and what is billed now |
| Materials presently stored | Materials on site or stored but not yet installed, where the contract allows billing for them |
| Total completed and stored, percent | Progress to date on that line |
| Balance to finish | What is left to bill on that line |
| Retainage | The amount held back until later in the job |
How the AIA G703 continuation sheet lays out a schedule of values. Other contract forms use the same idea with different columns.
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What a schedule of values looks like on a build-out
Most schedules of values follow the trades, because that is how the work is bought and how progress is easy to see. The trades on our 5,618 square foot Orenco Family Medicine clinic in Hillsboro make a good example of the lines you would find:
- Demolition
- Metal stud framing
- Drywall and acoustical ceilings
- Plumbing
- Fire sprinklers
- Electrical and lighting
- HVAC and fire alarm
- Flooring, painting, finish carpentry, casework and countertops
- Window treatments and a final clean
Most schedules also carry lines for general conditions, like supervision and temporary facilities, and for the contractor's fee. A retail build-out like the 3,790 square foot Thirsty Caterpillar in Lake Oswego adds lines like the storefront and the grid ceiling. Large jobs split lines further, by floor, area or phase, so progress can be measured more precisely.
How it drives each payment
Each pay period, usually monthly, the contractor fills in how much of each line is complete, plus any stored materials the contract allows. The total, minus retainage and what was already paid, is the amount due. Under the standard AIA general conditions, the schedule of values, unless the architect objects to it, is the basis for reviewing every payment application. The architect, or the owner on a job without one, checks the claimed progress against the work in the field before certifying payment.
When the contract changes, the schedule changes with it. An approved change order becomes a new line or adjusts an existing one, so the schedule of values always adds up to the current contract sum. Retainage carries through to the end, and is usually released around substantial completion and final completion.
What an owner should check
- Does it add up to the contract sum? Every line, including general conditions and fee, should total the contract price exactly.
- Are the lines detailed enough to measure? "Electrical, 40 percent" is easy to check against the work. A single line for "interior" is not.
- Is any early line priced high? Values weighted toward early work mean more money billed early and less left to finish. That is called front-loading.
- Does claimed progress match the site? Walk the job. A line billed at 75 percent should look about three-quarters done.
- Are stored materials allowed and documented? If the contract allows billing for them, ask where they are stored and how they are insured.
On a guaranteed maximum price contract, the schedule of values is also how you see contingency and allowances being used. Related terms are in our commercial construction glossary.
Frequently asked questions
What is a schedule of values in construction?
An itemized list that splits the whole contract price into parts of the work, like demolition, framing, electrical and finishes. Each month the contractor bills against it by the percent of each line that is done.
Who prepares the schedule of values?
The contractor, at the start of the job. On architect-led contracts the architect reviews it, and once accepted it becomes the basis for reviewing every payment application.
What is the difference between the G702 and G703?
The G703 continuation sheet lists every line of the schedule of values with its value, progress and retainage. The G702 is the cover sheet that totals it and certifies the amount due. Together they make up an AIA payment application.
How do change orders show up on a schedule of values?
As new lines, or as adjustments to existing ones, so the total always matches the current contract sum. Our change order guide covers how those changes are approved.
What is front-loading a schedule of values?
Putting more value on the early lines than the work is worth, so more money is billed early in the job. Owners and architects watch for it because it leaves less money in the later lines to finish the work.
The bottom line
The schedule of values turns a contract price into lines of work you can measure, and every payment is billed against it. Make sure it adds up, is detailed enough to check, is not weighted toward early work, and matches what you see on site.
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