Direct Answer
A Schedule of Values (SOV) is an itemized breakdown of the total construction contract price into specific portions of work, each assigned a dollar value. It provides the financial structure used to track how much of the contracted work has been completed and how much can appropriately be included in progress payment applications.
For a commercial roofing project, the SOV might break the roofing contract into items such as mobilization, tear-off, insulation, membrane installation, flashing, sheet metal, equipment curbs, warranty work, and closeout. The individual values should add up to the applicable contract sum.
The SOV matters because it creates a common financial reference point for the owner, general contractor, architect, construction manager, and subcontractors. Under AIA contract provisions, the schedule of values is used as the basis for reviewing applications for payment and allocating the contract sum among portions of the work.
Who This Applies To
- Commercial property owners
- General contractors
- Commercial roofing contractors
- Construction managers
- Architects and design professionals
- Developers and owner’s representatives
- Property and facility managers involved in capital projects
Not for: An SOV is not itself a construction schedule, project specification, or guarantee of the amount actually earned. It is primarily a cost allocation and payment-tracking tool, subject to the project’s contract documents.
1. What Does a Schedule of Values Contain?
A typical SOV divides the contract into identifiable work items and assigns a value to each.
For example, a commercial roofing project might look like:
| Work Item | Scheduled Value |
|---|---|
| Mobilization and setup | $25,000 |
| Roof tear-off and disposal | $75,000 |
| Insulation | $110,000 |
| Roof membrane | $250,000 |
| Flashing and sheet metal | $85,000 |
| Roof accessories and penetrations | $40,000 |
| Testing, inspection and closeout | $15,000 |
| Total | $600,000 |
The actual categories and level of detail should be established according to the project’s contract requirements. AIA guidance notes that the schedule should allocate the entire Contract Sum among the various portions of the Work and be supported by enough information to substantiate its accuracy.
2. Why Does the SOV Matter for Progress Payments?
The primary reason an SOV matters is that it provides the basis for determining the value of completed work in a progress payment application.
For example, if the membrane installation line is worth $250,000 and the contractor has legitimately completed 40% of that scope, approximately $100,000 of that line may be reflected as completed work, subject to the contract’s payment provisions and actual verification.
AIA’s A102 payment provisions specifically state that each Application for Payment is based on the most recent Schedule of Values and that the percentage of completion of each portion of the work is used in calculating progress payments.
3. Why Should an Owner Care About the SOV?
The SOV helps an owner understand where the project’s money is going and whether the requested payment corresponds reasonably with actual progress.
A well-structured SOV can help an owner:
- Review monthly payment applications
- Compare claimed progress with physical progress
- Identify unusually large early payment allocations
- Track major work categories
- Monitor remaining contract value
- Evaluate change orders
- Reduce the risk of paying disproportionately for incomplete work
AIA guidance specifically notes that a good SOV helps the architect evaluate whether the percentage of completion claimed in a payment application is reasonable and warns that overpayment early in a project can create problems later.
4. What Is Front-Loading?
Front-loading occurs when a contractor assigns disproportionately high values to work that will be completed early in the project and relatively low values to work that will occur later.
For example, if a roofing subcontractor assigns an unusually large percentage of the contract to mobilization, material procurement, or early preparation while assigning comparatively little value to later installation and closeout, the SOV may cause the contractor to receive a larger portion of the contract value earlier than the physical progress would suggest.
This is why owners, architects, and construction managers should review whether the SOV reasonably reflects the actual cost and sequence of the work. AIA’s construction-administration guidance specifically identifies front-loading as an issue that should be considered when reviewing schedules of values.
5. How Does the SOV Apply to Commercial Roofing?
Roofing projects often contain several distinct scopes that should be separately identifiable in the payment breakdown.
Depending on the project, these may include:
- Mobilization
- Temporary protection
- Existing roof removal
- Deck preparation
- Insulation
- Cover board
- Membrane installation
- Flashings
- Edge metal
- Roof drains and accessories
- Equipment curbs
- Sheet-metal work
- Testing
- Manufacturer inspection
- Final repairs
- Warranty and closeout documentation
Breaking these items out makes it easier for the project team to compare the contractor’s payment request with what is actually visible or documented in the field.
6. Why Is the SOV Important for a General Contractor?
For a GC, the SOV provides a structured way to manage payment applications and subcontractor progress.
It can help the GC:
- Track subcontractor progress
- Prepare owner payment applications
- Coordinate stored materials
- Track retainage
- Incorporate approved change orders
- Monitor remaining contract value
- Support payment documentation
ConsensusDocs similarly describes the Schedule of Values as the allocation of the various divisions or phases of the work, with the total equaling the Contract Price, and connects it directly with progress-payment procedures.
7. How Should an SOV Be Reviewed?
The project team should review whether the SOV is sufficiently detailed and whether the values reasonably correspond to the actual work.
Important questions include:
- Does the SOV total equal the contract amount?
- Are the major scopes of work separately identified?
- Are subcontracted scopes appropriately broken out?
- Are material and labor values reasonably allocated?
- Are unusually large early-value items justified?
- Can field progress be measured against each line item?
- Are stored materials addressed according to the contract?
- Are approved change orders incorporated correctly?
- Does the payment application use the current SOV?
AIA guidance recommends that the SOV contain enough detail to make evaluation of payment applications accurate and efficient.
8. SOV vs. Construction Schedule
These documents are related but serve different purposes.
| Document | Primary Purpose |
|---|---|
| Schedule of Values | Breaks the contract price into financially trackable work items |
| Construction Schedule | Shows when activities are expected to occur |
| Application for Payment | Requests payment based on completed work and applicable contract provisions |
| Change Order | Documents an authorized change to contract scope, price, or time |
The SOV answers primarily “How much of the contract value is associated with each portion of the work?” The construction schedule answers “When is that work expected to happen?”
9. Why Does It Matter During Roofing Quality Control?
An SOV can also help connect payment review with physical roofing progress.
For example, a project team may compare payment requests against:
- Daily observation reports
- Roof-area completion maps
- Material delivery records
- Photographs
- Inspection reports
- Manufacturer inspection documentation
- Punch-list items
- Roofing progress reports
This makes it easier to determine whether the percentage claimed for a roofing scope reasonably corresponds with work actually completed.
10. How Should Stored Materials Be Handled?
Some contracts permit payment for materials or equipment that have been suitably stored, subject to specific contract requirements and documentation.
AIA payment provisions expressly address materials and equipment delivered and suitably stored at the site and, when approved in writing, suitably stored off site.
For roofing projects, this can become important when large quantities of membrane, insulation, cover board, sheet metal, or other materials are delivered before installation.
The owner should verify that the contract permits payment for stored materials and that the required documentation, ownership, storage, insurance, and verification requirements have been satisfied.
11. What Happens When the SOV Is Poorly Structured?
A poorly structured SOV can make payment review unnecessarily difficult and can create opportunities for disputes.
Problems may include:
- Large lump-sum categories that are difficult to measure
- Disproportionate early values
- Insufficient separation of major scopes
- Payment requests that cannot be easily verified in the field
- Difficulty tracking change orders
- Confusion over remaining contract value
- Disputes about percentage complete
AIA’s construction-administration guidance emphasizes that the SOV should provide enough information for the architect to accurately and efficiently evaluate applications for payment.
12. What Should a Roofing Subcontractor Include?
A roofing subcontractor should follow the requirements established by the prime contract, subcontract, specifications, and project administration requirements.
A useful roofing breakdown may distinguish major scopes rather than placing the entire roofing contract under one line called “Roofing.”
For example:
- Mobilization
- Demolition
- Insulation
- Membrane
- Flashing
- Metal accessories
- Roof penetrations
- Testing and inspection
- Final corrections
- Closeout and warranty
AIA guidance notes that a frequent requirement is for each major item of work and subcontracted item to be shown in sufficient detail for payment administration.
13. How Does the SOV Help Prevent Payment Disputes?
A clearly structured SOV establishes a shared framework for discussing progress.
If the contractor claims that 70% of the roofing work is complete while the owner or architect believes only 55% is complete, the team can examine individual line items instead of arguing only about one overall percentage.
They can ask:
- How much insulation is actually installed?
- How much membrane is complete?
- How much flashing is complete?
- What materials are legitimately eligible as stored materials?
- What corrective work remains?
- What percentage of the applicable line item is actually complete?
This makes payment discussions more objective and documentable.
14. What Should Owners Watch for Before Approving an SOV?
Before accepting an SOV as the basis for payment applications, the owner or owner’s representative should pay particular attention to unusually large values assigned to early activities.
For example, question:
- Large mobilization amounts
- Unusually high material procurement values
- Large deposits presented as completed work
- Lump-sum scopes that cannot be objectively measured
- Very small values assigned to substantial late-stage work
The objective is not to force every project into the same format. The objective is to ensure that the allocation is reasonable and useful for evaluating actual progress.
Bottom Line
A Schedule of Values is the financial roadmap for tracking construction progress and progress payments. It divides the contract amount among identifiable portions of the work so the project team can evaluate how much work has been completed and how much payment is reasonably due.
For commercial roofing, a well-built SOV can make payment applications easier to verify, reduce ambiguity around percentage completion, expose potential front-loading, and connect financial progress with actual field progress. AIA and ConsensusDocs both recognize the SOV as an important part of progress-payment administration.
Related Questions
- What should a GC expect from daily RRO observation reports during roof installation?
- What roofing closeout documents should a GC collect before turnover?
- How can a GC reduce roofing quality-control risk on a commercial project?
Sources
- AIA A201 — General Conditions: Schedule of Values and Applications for Payment
- AIA A102 — GMP Contract: Progress Payments and Schedule of Values
- AIA A503 — Guide to Supplementary Conditions
- ConsensusDocs Guidebook — Schedule of Values and Progress Payments
Last reviewed: October 2026
Related Resources
What Does a GC Need to Know About Manufacturer Warranty Inspections on a New Commercial Roof?
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Disclaimer: This information is provided for general educational purposes and is not legal, contractual, financial, engineering, or construction-administration advice. Project-specific payment procedures and Schedule of Values requirements are governed by the applicable contract documents.
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