Commercial roofing projects often involve large contracts completed over several weeks or months. Because the entire project cost is not usually paid upfront, contractors submit progress payment requests based on the amount of work completed.
A key document used to manage these payments is the Schedule of Values (SOV).
A properly prepared Schedule of Values helps property owners, contractors, and project managers track progress, verify invoices, manage cash flow, and reduce payment disputes.
What Is a Schedule of Values?
A Schedule of Values is a detailed breakdown of the total roofing contract price into specific categories of work and their assigned values.
Instead of showing only one total contract amount, the SOV divides the project into measurable components.
For example, a commercial roofing contract valued at $1,000,000 may be broken down into:
| Work Item | Contract Value |
|---|---|
| Mobilization | $25,000 |
| Roof removal | $150,000 |
| Insulation installation | $200,000 |
| Roofing membrane installation | $400,000 |
| Flashing and sheet metal | $100,000 |
| Cleanup and closeout | $25,000 |
| Warranty and inspections | $100,000 |
The total of all values equals the complete contract amount.
Why Does a Schedule of Values Matter?
The Schedule of Values is important because it creates a transparent method for determining progress payments.
It helps answer:
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How much work has been completed?
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What percentage of the project is finished?
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How much should the contractor be paid?
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What amount should be withheld as retainage?
Without a detailed SOV, progress payments may become difficult to verify.
How Is a Schedule of Values Used for Roofing Payments?
During construction, the roofing contractor submits payment applications based on completed work.
The owner reviews:
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Completed quantities
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Percentage of completion
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Supporting documentation
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Approved change orders
The SOV provides the reference point for calculating payment.
Example:
Roof membrane installation is assigned:
$400,000
If 50% of the membrane work is complete:
$400,000 × 50% = $200,000 earned value
The owner can verify whether the requested payment matches actual progress.
Benefits of a Good Schedule of Values
1. Improves Payment Transparency
Both parties understand how contract payments are calculated.
The owner can see:
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What work has been completed
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What remains
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How costs are allocated
The contractor has a clear payment structure.
2. Helps Prevent Overbilling
A detailed SOV helps prevent situations where a contractor requests payment ahead of actual progress.
For example:
A contractor should not receive 90% payment for a roofing system if only 60% of the installation is complete.
3. Supports Retainage Calculations
Retainage is often calculated from progress payments.
A clear SOV helps track:
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Earned contract value
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Amount withheld
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Remaining balance
4. Helps Manage Change Orders
Commercial roofing projects often encounter changes, such as:
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Additional deck replacement
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Extra flashing repairs
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Added insulation
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Unforeseen conditions
A detailed SOV helps determine where added costs belong.
5. Improves Project Accounting
Owners and contractors can better track:
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Budget performance
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Remaining costs
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Forecasted expenses
This is especially important for large commercial properties.
What Should Be Included in a Roofing Schedule of Values?
A roofing SOV should include detailed categories such as:
Mobilization
Includes:
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Equipment delivery
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Site setup
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Safety preparation
Roof Removal
Includes:
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Tear-off
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Disposal
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Surface preparation
Roofing System Installation
Includes:
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Insulation
-
Membrane
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Adhesives
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Fasteners
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Cover boards
Flashing and Sheet Metal
Includes:
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Edge metal
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Coping
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Penetration flashing
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Drain details
Testing and Inspections
Includes:
-
Manufacturer inspections
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Testing requirements
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Quality control
Closeout
Includes:
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Warranty documents
-
Final cleanup
-
Project documentation
How Should a Schedule of Values Be Structured?
A good SOV should:
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Match the contract scope
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Use measurable work categories
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Avoid overly broad categories
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Reflect actual construction sequence
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Include approved change orders separately
A poor SOV may combine too much work into one category, making progress verification difficult.
Common Schedule of Values Mistakes
1. Using One Large Line Item
Example:
“Roof replacement – $1,000,000”
This provides little payment transparency.
2. Front-Loading Costs
Front-loading occurs when early activities are assigned excessive value to allow the contractor to receive more payment before completing the majority of work.
3. Ignoring Material Procurement
Some projects include stored materials in payment calculations, but this should be clearly documented.
4. Not Updating After Change Orders
The SOV should be revised when the contract value changes.
Schedule of Values and Stored Materials
Some roofing contracts allow payment for materials purchased and stored before installation.
Examples:
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Roofing membrane
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Insulation
-
Sheet metal
Owners should require documentation such as:
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Supplier invoices
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Proof of ownership
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Storage information
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Insurance confirmation
How Owners Should Review an SOV
Before approving the Schedule of Values, owners should confirm:
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Values are reasonable
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Major work categories are separated
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Costs match the contract
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Payment timing matches construction progress
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Change orders are properly incorporated
For large projects, a roofing consultant or construction manager may assist with review.
Frequently Asked Question
What is a schedule of values and why does it matter?
A Schedule of Values is a detailed breakdown of a roofing contract price into specific work categories used to calculate progress payments. It matters because it provides transparency, helps verify completed work, prevents overbilling, supports retainage calculations, and improves project financial management. A properly prepared SOV allows commercial property owners to track roofing project costs and ensure payments match actual construction progress.
For commercial roofing projects, a well-structured Schedule of Values creates accountability, improves communication, and helps keep the project financially controlled from start to finish.
Related Questions
- How do payment terms typically work for commercial roofing?
- What should I do if my contractor asks for a large upfront payment?
- Are verbal change orders enforceable in Florida?
- Who owns leftover materials at project completion?
- How can I ensure transparency with my roofing contractor regarding costs?
