How do you prepare a schedule of values for a pay application?
Schedule of values preparation starts from the priced estimate and the subcontract list, not from a blank template. Each line gets a cost code, a unit of measure, a quantity and a value that reconciles to the contract sum, so the G703 detail and the G702 totals agree before the first billing period closes.
Our Professional Schedule of Values Preparation
A schedule of values is a billing document, not an estimate. Its line items must tie back to the contract sum and to a quantity takeoff that supports every dollar. We build it that way: each line carries a unit of measure, a measured quantity, a rate, and a cost code that matches the estimate it came from.
We prepare the SOV from the plans, the specifications and the contractor's own cost breakdown, so the owner, architect and lender can trace any line back to a measured quantity. A schedule of values template is only the starting grid; the work is in the quantities and the cost code structure behind it. Because every line is measured rather than allocated, the finished document resists the front loading that reviewers flag during payment certification, and the same construction cost estimates support the percent complete figures you bill against each period. When the SOV has to reconcile line for line with a submitted bid, our bid estimates support that cross-check before the first pay application goes out.
Measured quantities by line item
We measure the permanent materials in each line item — concrete in cubic yards, masonry in square feet of wall area, rebar in tons, drywall in square feet of board, roofing in squares — and carry the waste allowance as a separate visible line rather than burying it in the rate. Each quantity is traceable to a drawing sheet and a measurement rule, so a reviewer can re-measure the line. The output is a line-item quantity column that survives an architect's audit.
Labor priced by trade and crew
Labor is priced by trade and crew, using published wage data for the trade and a stated productivity rate in the unit of measure — linear feet of pipe per hour, square feet of formwork per hour. We separate straight-time labor, supervision and burden so the SOV line shows what is actually being billed. Use our labor cost estimating services when the SOV must stand up to a lender's review of payroll.
Bid-ready pricing that reconciles
When the SOV is required at bid or at contract execution, we build it from the same quantities used in the bid so the two documents reconcile. Mobilization, general conditions, overhead and profit, bonding and contingency appear as their own lines, never as a percentage hidden inside a trade. The deliverable is an Excel workbook and PDF summary with marked-up drawing pages; the fee is quoted per project after we review the plans.
What Is Included in Our Schedule of Values Preparation Estimates?
The core question in how to prepare a schedule of values is allocation: which line gets which dollar. We answer it with measured quantities and cost codes rather than percentages of the contract sum, the same method we apply across our construction estimating services. Every line on the pay application traces to a quantity takeoff, which is what keeps billing balanced from the first draw to closeout. The arithmetic on each line follows the same pattern shown in our construction estimate example, so an owner or lender can recheck any scheduled value without asking for backup.
Cost codes, general conditions and trade line items
We set up the cost breakdown structure first: CSI MasterFormat divisions 00–49 for the work, then sub-codes for general conditions, mobilization, overhead and profit, bonding, allowances and alternates. Change orders get their own numbering sequence so the SOV can be amended without renumbering the base contract. Each line carries a description, a unit, a quantity, a scheduled value and the cost code that links it to the accounting ledger.
Measured quantities and percent complete rules
Each line carries a measured quantity and a stated rule for earning it — stored materials billed on delivery with a paid invoice and a stored-materials rider, installed work billed on measured in-place quantity. Percent complete is then a division of measured quantity by scheduled quantity, not an estimate of effort. Balanced billing follows from that: no line runs ahead of its measured installation.
Materials, labor, equipment and cost breakdowns
Every scheduled value splits into its parts so the owner and lender can see what is being paid for:
- Material: quantity × unit price, with the waste allowance shown separately.
- Labor: hours × published wage rate, plus burden and supervision.
- Equipment: rental or ownership rate × duration, on lines where equipment drives the cost.
- Subcontract: the subcontract value, broken to the same cost codes.
- Indirect: general conditions, mobilization, overhead and profit, bonding and contingency as distinct lines.
AIA G703 line items are then populated from this breakdown, and the G702 cover sheet totals are checked against the contract sum before the package goes to the architect for payment certification.
Who Needs Our Schedule of Values Preparation?
Anyone who bills monthly against a contract sum needs a defensible SOV, and anyone who certifies payment needs to be able to check one. We prepare schedule of values for pay applications at the trade level and at the general contract level, with the quantities and cost codes that support each line. Bidders who need the pricing behind those lines before the award can pair this with our professional hard bid and bid day support.
Specialty trade subcontractors
Electrical, mechanical, concrete, drywall and roofing subcontractors use the SOV to bill their own scope without waiting on the general contractor's breakdown. Lines are built from your subcontract value and your own cost codes, so stored materials, retainage and percent complete reconcile with your job cost report. If you are pricing the work as well as billing it, start with our construction estimating services.
General contractors and home builders
A general contractor's SOV must aggregate every subcontract without double-counting general conditions or contingency. We build the cost breakdown structure at the division level, then populate each line from the subcontract schedules, and we reconcile the total to the contract sum before the first pay application. Builders billing draws on residential work get the same treatment at the trade level.
Developers, architects and suppliers
Owners and developers use the SOV to control draw requests and to compare billing against the budget. Architects and lenders use it to certify payment, which is why stored materials and front loading get scrutinized first. Suppliers and material vendors can see how their delivered product is billed once it is on site but not yet installed.
Types of Schedule of Values Preparation Projects We Estimate
The SOV format changes with the delivery method and the payer, not just the building type. We adapt the line structure to the contract form and the review process behind it, and the cost breakdown structure we build traces back to the same quantities priced during preliminary and conceptual estimating. Where the contract is awarded on a hard bid, the division lines should reconcile to the bid form, which is why we keep professional hard bid and bid day support in view when the SOV is built from bid documents.
Residential projects
Custom homes and multifamily work bill against draw schedules, so the SOV follows the lender's draw line items rather than CSI divisions alone. Percent complete is often tied to completed stages — foundation, framing, dry-in, rough-in, finishes — and each stage must hold measured quantities behind it. Review a construction estimate example to see how those quantities are laid out before they reach the SOV.
Commercial buildings
Commercial work uses the AIA G702/G703 format with CSI division line items, retainage, stored materials and a formal payment certification cycle. Tenant improvements add allowances and alternates that must appear as separate lines so the owner can see what was authorized. Subcontractor billing rolls up into the general contractor's SOV at the division level.
Industrial and infrastructure projects
Process and heavy civil work bills against unit price schedules and bid items, so the SOV mirrors the schedule of bid items rather than a division breakdown. Equipment, mobilization and bonding carry larger shares, and percent complete is measured in linear feet, cubic yards or tons installed. Our bid estimating services cover the pricing side of the same bid items.
Our Schedule of Values Preparation Estimating Process
Schedule of values preparation starts from the same documents the pay application will be judged against: the full drawing set, the project manual, the general conditions, and the executed subcontract or prime contract. We read the payment terms first, because retainage percentages, stored-materials rules and the lien waiver form required at each billing period shape how the line items must be structured. A worked construction estimate sample shows how the same quantities and cost codes carry through to billing, and our construction cost estimates apply the same cost code structure the SOV will use. The result is a cost breakdown that a general contractor, owner or lender can audit line by line.
Submit drawings and specifications
Send the complete set: architectural, structural, civil, mechanical, electrical and plumbing sheets, plus the specification book, addenda, alternates and any unit-price schedule. Include the contract or subcontract with its payment article, the schedule of allowances, and the AIA G703 schedule of values format if the project uses it. Missing sheets are the most common cause of a rejected submittal, so we list what arrived before takeoff begins.
Plan review and digital takeoff
An estimator reviews the set for scope gaps, then measures quantities on screen against a stated measurement rule: square feet of wall area net of openings, linear feet of pipe by diameter, cubic yards of concrete by mix and placement. Each quantity is tagged to a CSI MasterFormat division (00–49) and a cost code so the billing line items match the accounting ledger. Drawing revisions are logged so the takeoff reflects the latest issued set.
Cost calculation, quality checks and delivery
Quantities are priced with labor, material and equipment rates, then checked by a second estimator who re-measures a sample of line items and tests the arithmetic of every extension and subtotal. We confirm that the line items sum to the contract sum, that mobilization and general conditions are spread the way the contract requires, and that no division is front loaded. You receive an Excel workbook and PDF summary with marked-up drawings through our construction estimating services, and the fee is quoted per project after we review the plans.
Sample Schedule of Values Preparation Estimate and Deliverables
The illustrative example below shows how schedule of values line items are built for a single-story commercial tenant fit-out, assuming 4,200 square feet of floor area, a 12 percent combined overhead and profit markup, and a 5 percent contingency carried as its own line. Quantities are rounded to the measurement rule stated in each row, and each row traces back to a measured quantity from our quantity takeoff services before it becomes a billing line. The table is illustrative only; your project quantities and pricing will differ.
| Line item | Quantity | Unit | Unit cost range | Extended range |
|---|---|---|---|---|
| Division 09 – Gypsum board partitions | 3,150 | sf | $4.20 – $5.60 | $13,230 – $17,640 |
| Division 09 – Acoustical ceiling tile | 4,200 | sf | $2.80 – $3.40 | $11,760 – $14,280 |
| Division 23 – Rooftop unit and ductwork | 1 | ls | $38,000 – $46,000 | $38,000 – $46,000 |
| Division 26 – Lighting and branch power | 4,200 | sf | $6.50 – $8.00 | $27,300 – $33,600 |
| Division 27 – Data cabling drops | 24 | ea | $210 – $260 | $5,040 – $6,240 |
| General conditions and mobilization | 1 | ls | $18,000 – $22,000 | $18,000 – $22,000 |
| Subtotal | — | — | — | $113,330 – $139,760 |
| Overhead and profit (12%) | — | — | — | $13,600 – $16,771 |
| Contingency (5%) | — | — | — | $5,667 – $6,988 |
| Total | — | — | — | $132,597 – $163,519 |
Excel quantity takeoff sheet
The workbook carries one row per measured quantity with the drawing reference, unit of measure, measurement rule and waste factor, so any reviewer can trace a line item back to a sheet. Columns for cost code, CSI division and billing period let you paste the rows directly into a pay application. Formulas stay live, so a corrected quantity flows through the extensions and the total.
Marked-up drawings
Each takeoff quantity is highlighted on the drawing page where it was measured, with a tag matching the workbook row number. When the architect issues a change order or a revised sheet, the affected tags are re-measured and the delta is documented for the next billing period. This is the record that supports stored materials and percentage complete claims.
Itemized cost estimate
The itemized cost estimate groups the takeoff into billing line items by trade, then adds general conditions, overhead and profit, contingency and allowances as separate rows. That structure keeps the schedule of values distinct from the estimate itself, and it lets the owner compare the SOV to the original bid before approving the first application for payment.
Software and Pricing Data We Use
A schedule of values vs estimate comparison only holds up when both documents rest on the same measured quantities. We keep the takeoff, the estimate and the billing line item set in one linked workbook so a change in quantity or a priced change order updates all three. That shared structure is what lets budget estimates carry forward into the SOV without re-keying quantities. The chart below tracks producer price movement for the materials that drive this scope, and the wage table below shows the trade rates behind the labor portion.
Takeoff and estimating software
Estimators work in PDF and on-screen takeoff tools that measure directly on the drawing, then export quantities into a spreadsheet estimating model with a cost database behind it. Every line item keeps its unit of measure, measurement rule and source sheet reference. The contingency and markup rows sit at the bottom of the sheet, separate from measured work, so the owner and architect can see exactly what is measured and what is allowance.
Regional material and labor pricing method
We start from national average unit costs, adjust them with published U.S. Bureau of Labor Statistics wage data and Producer Price Index series, then apply location, prevailing wage and project-condition factors. The calculator below and the chart below show how those published inputs have moved; the wage table below lists the trade rates we adjust from. An estimator reviews every adjusted rate before the workbook is released.
Material price movement, Oct 2023 to Sep 2026
| Occupation | 25th percentile | Median | 75th percentile |
|---|---|---|---|
| Construction laborers | $18.57 | $22.66 | $28.72 |
| Carpenters | $23.32 | $29.12 | $36.94 |
| Electricians | $23.76 | $30.38 | $40.36 |
| Plumbers, pipefitters and steamfitters | $24.13 | $30.67 | $40.92 |
| Cement masons and concrete finishers | $22.60 | $27.41 | $32.15 |
| First-line supervisors, construction trades | $30.48 | $38.42 | $48.78 |
| Cost estimators | $29.40 | $37.86 | $48.97 |
Base wages before payroll taxes, insurance and benefits. Source: BLS Occupational Employment and Wage Statistics, national, all industries.
Why Contractors Choose Our Estimating Services
A contractor billing schedule of values fails for structural reasons, not cosmetic ones: line items that do not match the cost code in the accounting system, general conditions spread unevenly, or a single lump-sum row that the lender cannot certify. We build the SOV from the measured takeoff so each row has a quantity, a unit and a cost code behind it. That traceability is the reason the same workbook survives payment certification, change order pricing and closeout, and it is the same discipline behind our professional budget estimating services. To start, get a quote after sending the drawings and the cost code list you bill against.
Trade-specific expertise
Each division is measured by an estimator who works in that trade, so concrete is taken off by mix and placement, electrical by device and circuit, and mechanical by system and diameter. Trade-specific measurement rules prevent the rounding and double counting that show up later as disputed percentages complete. Where a subcontractor's own billing format differs, we map their cost codes to the prime schedule of values.
Quality control and clear assumptions
A second estimator re-measures a sample of quantities and checks every extension, subtotal and markup before delivery. Assumptions are written on the face of the sheet: what was excluded, which drawing revision was used, and how allowances and alternates were handled. If a scope item is unclear, we flag it as an open question rather than burying it in a lump sum.
Turnaround, communication and revisions
Delivery dates are agreed in writing when the project is accepted, based on set size and scope, and we confirm the date after reviewing the drawings. Revisions from addenda or a revised sheet are handled as tracked changes to the workbook, with the delta noted for the current billing period. Questions go to a named estimator, not a queue, so clarifications arrive before the pay application deadline.
Schedule of Values Preparation Pricing
The fee is quoted per project after we review the drawings, specifications and bid form, so there is no rate card to publish here. What drives the number is the work behind the schedule of values preparation: how many pay items the contract needs, how many trades and subcontractors sit behind them, and how cleanly the cost breakdown ties to the estimate and to the CSI MasterFormat divisions in the specifications. A general contractor billing a single package of work needs far fewer line items than one carrying twenty trades, stored materials and a dozen alternates.
We build the schedule of values cost breakdown from the same quantities and unit prices used for the estimate, so each billing line traces to a measured quantity and a unit of measure rather than a round percentage. The labor component of each line comes from the same labor cost estimates used in the bid, so a framing or electrical line carries a wage basis rather than a lump figure. Overhead and profit, general conditions, mobilization and any contingency allowed by the contract are shown as separate lines, which is what an owner's reviewer or a lender's draw request reviewer looks for first. Send the plans, the bid form and any existing billing format through our quote request page and we will confirm scope and fee before work starts.
How quotes are calculated
We price the effort, not the contract value. The estimator counts the pay items and cost codes the schedule must carry, checks how many divisions the scope touches, and reviews the alternates, allowances and unit-price items the bid documents require. Each of those adds a line, a quantity source and a cross-check against the estimate.
If you already have a schedule of values template from the owner or a prior project, we work inside it and map our cost codes to your numbering rather than forcing a new structure. Where the contract specifies an AIA G703 continuation sheet behind a G702 application, the quote covers the G703 line-item build, the retainage and stored-materials columns, and the reconciliation to the G702 totals. The fee is confirmed in writing with the scope.
What affects price and delivery time
Sheet count and trade count move the fee most, followed by the number of alternates and unit-price items, the volume of addenda, and whether the documents are a full set or a partial package. A single-trade package with thirty pay items is a different job from a multi-building project with several hundred. The date is confirmed with the quote; we do not publish an hours-per-sheet figure because the mix of trades changes it.
Delivery time shortens when we receive a complete set, a bid form or draft schedule, and the estimate the schedule must reconcile to. It lengthens with late addenda, incomplete specifications, or a request to rebuild a schedule mid-billing period after a change order. Tell us the first billing date when you send the documents so the sequence is planned around it. The calculator below works from your own inputs for the overall project budget; it does not price the schedule itself.
Square-foot budget calculator
- Hard cost
- $444,000
- Soft costs
- $53,280
- Contingency
- $49,728
- Escalation
- $21,880
- Budget total
- $568,888
- All-in per sq ft
- $237
Enter your own base rate from a recent bid, cost book or estimator. The default values are placeholders for the math, not market prices.
Schedule of Values Preparation Across the US
Wage levels are the largest regional variable behind the line items a schedule of values preparation carries. Crew rates for electricians, plumbers and carpenters differ by metro, so the labor portion of each cost code differs too, and a schedule built on national averages will not balance against a local contract. Public work adds prevailing wage requirements, which change the labor rate on every affected line and must be reflected before the first pay application.
Material delivery and climate shift the timing of billing. A project in a short construction season front-loads concrete and framing into fewer billing periods, while a mild climate spreads them out. Code differences between jurisdictions affect scope items such as fire-rated assemblies and seismic detailing, which appear as distinct lines within division 00-49 rather than inside a general conditions lump sum.
We serve all states from one team, so the same method applies everywhere: quantities measured from the drawings, unit prices adjusted with published wage and price data, then reviewed by an estimator. Mobilization, stored materials and schedule of values percentage complete are handled the way the contract and the architect's payment certification process require. If you want the measurement rules shown line by line, start with our construction estimating services and compare the format to a construction estimate example; where the schedule has to survive a competitive bid, our professional bid estimating services apply the same line-item discipline to the bid form.
Frequently Asked Questions
How much does a schedule of values preparation estimate cost?
The fee is quoted per project after we review the plans, specs and contract form. Scope drives it: number of cost codes, trades involved, alternates and allowances, and whether stored materials must be tracked separately. Send the drawings and the proposed billing format, and the quote states the fee and what the workbook contains before work begins.
How long does a schedule of values preparation takeoff take?
The delivery date is set when we quote, based on sheet count, trade count and how many cost codes your contract requires. It is confirmed in writing with the fee, so you can plan the first billing period around it. We do not publish a standard turnaround because the scope of each SOV differs.
Do you estimate labor and material costs?
Yes. Each line item carries a labor component built from trade hours, and a material component priced from quantity takeoff. Labor rates are national averages adjusted with published U.S. wage data, and material prices are reviewed against published producer price movement, then an estimator checks the result. The workbook shows the hours, unit and rate behind every line.
What drawings do you need?
Send the full architectural, structural, mechanical, electrical and plumbing drawing set, the specifications, and the contract or proposal form that lists the bid items. Add the schedule of values template or pay application form the owner requires. If you have a signed subcontractor list, include it so cost codes match how you actually buy the work.
Can you use my estimate template?
Send your template with the plans and we confirm whether the estimate can be delivered in it. We work in Excel workbooks and PDF summaries with marked-up drawing pages, so a spreadsheet-based schedule of values template usually maps directly. A locked or proprietary billing system may need the data exported instead.
Do you sign NDAs?
Clients can request an NDA before sending drawings, and the terms are agreed before plan review starts. Tell us the counterparty name and the required form when you first make contact, and we will confirm before any files are transferred. We do not publish a standard NDA policy because terms are handled per engagement.
What is the difference between a schedule of values and an estimate?
An estimate prices the work to establish cost or a bid. A schedule of values allocates the contract sum across billing line items so each pay application can be measured. The SOV must reconcile to the contract total, including general conditions, overhead and profit, and any contingency the owner allows, while the estimate explains how those numbers were built.
How do you prevent front loading in a schedule of values?
We distribute value by measured quantity in place, not by early cash need. Mobilization is limited to its actual cost, stored materials are billed only with evidence of delivery, and each line's percentage complete ties to installed quantity. That produces balanced billing that survives review by the owner, architect or lender.
Which CSI MasterFormat divisions do you break line items into?
Line items follow the current 50-division MasterFormat, 00 through 49, at whatever depth your contract requires. Most SOVs run at Division level with selected two-level breakdowns for large packages such as concrete, steel and electrical. Confirm with the owner's representative how deep the cost breakdown structure must go before the first pay application.
How do you handle stored materials and retainage in the SOV?
Stored materials get their own line items with the storage location and delivery documentation referenced, so the architect can certify them. Retainage is applied as a percentage per the contract and shown on the AIA G702 summary, not buried in line items. We keep both visible so the G703 column totals reconcile to the application.
Can you build line items from my subcontractor buyout?
Yes. Send the executed subcontracts or buyout schedule and we map each subcontractor's scope to a cost code, then check for gaps and overlaps against the drawing takeoff. That catches scope that was sold twice or not at all before it reaches a pay application. The result is a contractor billing schedule of values that matches how you actually pay your trades.
How do you track percentage complete for each line?
Each line carries a quantity, unit of measure and installed-to-date figure, so percent complete is calculated from measured work rather than estimated by feel. The workbook shows the arithmetic, and the same quantity basis feeds the next billing period. That keeps the SOV consistent from the first draw request through closeout and punch list.