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Business SOV Document

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BUSINESS SCHEDULE OF VALUES (SOV)

THIS SCHEDULE OF VALUES ("Schedule") is made effective as of by and between:

Client Name:

Contractor Name:

WHEREAS

WHEREAS, Client has engaged Contractor to perform work described in the Contract for the project known as Project Name: ; and

WHEREAS, the parties desire to establish an itemized Schedule of Values allocating the Contract Sum among the elements of the Work, to be used as the basis for progress payments; and

WHEREAS, this Schedule is incorporated into and governs payment applications and progress payment calculations under the underlying Contract Agreement identified as Contract Number: .

SCOPE OF WORK

The Contractor shall perform the scope of work described below in accordance with the Contract Documents. The following description summarizes the work categories and allocations for progress billing purposes.

SCHEDULE OF VALUES

The Schedule of Values allocates the total Contract Sum among the work categories below. Amounts represent original contract value, amounts previously billed, current payment requested, and remaining balance.

Line
Description
Original Value
Previously Billed
Current Request

PAYMENT TERMS

Contractor shall submit monthly payment applications based on the Schedule of Values. Payments shall be made in accordance with the following terms.

Invoices are due and payable within days from receipt. Retainage percentage, if any, shall be .

Late payments shall accrue interest at the rate of on unpaid balances, and Contractor may suspend work after providing a written notice of nonpayment and a five (5) business day opportunity to cure.

TERM AND TERMINATION

Term Commencement Date: . Term Expiration Date: .

Either party may terminate this Schedule for cause if the other party materially breaches any obligation and fails to cure such breach within days after receipt of written notice. Termination for convenience by Client requires days' prior written notice and payment for Work performed to date plus demobilization costs reasonably incurred.

CONFIDENTIALITY

Each party shall maintain as confidential all proprietary or non-public information disclosed by the other party in connection with this Schedule ("Confidential Information"). Confidential Information shall not include information that is or becomes publicly available other than by breach of this obligation, or that is independently developed by the receiving party without use of the disclosing party's Confidential Information. The receiving party shall use Confidential Information solely for purposes of performing obligations under this Schedule. The obligations set forth in this paragraph shall survive termination of this Schedule for a period of three (3) years.

GOVERNING LAW

This Schedule shall be governed by and construed in accordance with the laws of the State selected by the parties. The parties submit to the exclusive jurisdiction of the courts located in that State for any dispute arising under this Schedule.

ENTIRE AGREEMENT

This Schedule, together with the Contract Documents incorporated by reference, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings, whether written or oral. Any amendment to this Schedule must be in writing and signed by authorized representatives of both parties.

CERTIFICATION

The undersigned certifies that the values and allocations set forth in this Schedule of Values are accurate to the best of the signatory's knowledge and represent a true allocation of the Contract Sum for purposes of periodic payment requests.

Client Printed Name:

By:

Date:

Contractor Printed Name:

By:

Date:

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What the Business SOV Document Is and when it’s used

A Business SOV Document (commonly a Schedule of Values) is a structured statement that allocates the total contract price across discrete work items, phases, or deliverables to support progress billing and payment requests. It breaks a project into line items with assigned values and percentages, creating a baseline for payment applications, retainage calculations, change order accounting, and certified pay requests. Owners, contractors, and lenders use an SOV to reconcile completed work with invoices, to verify holdbacks, and to create an auditable trail for financial reporting and contract compliance during project execution.

Why a clear Business SOV Document matters

A well-prepared SOV reduces payment disputes, enables accurate progress invoicing, and provides a clear audit trail for contract administrators, accountants, and lenders. It also supports transparency in change management and protects parties when enforcing payment terms.

Why a clear Business SOV Document matters

Typical users and roles involved

Understanding each role’s review and approval responsibilities reduces processing delays and strengthens financial controls.

  • General Contractors and Project Managers who prepare and certify progress billings and track earned value.
  • Owners and Owners’ Representatives who review line-item progress to approve payments and retainage releases.
  • Lenders, Bonding Companies, and Accountants who require a verifiable allocation of costs for draws and audits.

Who signs and certifies the SOV

Project Executive

A senior officer or authorized representative who certifies that the SOV and associated payment application fairly represent work performed. Their signature ties corporate responsibility to the payment claim and supports enforceability in disputes or lender reviews.

Contract Administrator

The individual responsible for day-to-day contract compliance: they verify quantities, confirm change order inclusion, and attest that line-item values reflect agreed work before routing for final approval.

Core elements to include in a professional SOV

A complete SOV combines financial detail, contract references, and approval metadata so reviewers can reconcile work with payment requests and change orders.

Line Item Detail

Itemized description of each scope element tied to contract drawings, specifications, or change orders to ensure consistent interpretation across parties.

Original Value

Contract-authorized value for each line, used as the baseline for percent-complete calculations and for tracking cumulative changes.

Change Order Adjustments

Separate column for approved change order increases or decreases with references to CO numbers and approval dates to maintain auditability.

Work Completed to Date

Cumulative percent or quantity completed per line, supporting the current payment request and reconciliation with prior applications.

Current Period Billing

Value being billed in the current payment application, including calculations for retainage and subtotal amounts.

Approval Metadata

Fields for preparer, certifier, signatures, dates, and any lender or owner endorsements required for disbursement.

Essential compliance and security details to record

Document Version: Track version ID
Signer Identity: Name and title
Signature Timestamp: Date/time recorded
Change Log: Amendment notes
Retention Tag: Retention policy
Security Controls: Access restrictions

Primary risks and consequences of incorrect SOVs

Payment Delays: Lost cash flow
Disputed Amounts: Contract claims
Lien Exposure: Unpaid subcontractor claims
Audit Findings: Reimbursement demands
Bond Call Risk: Surety intervention
Tax Reporting Errors: 1099 / withholding issues

Common preparation pitfalls to avoid

  • Combining multiple scopes into a single ambiguous line item that prevents accurate percentage completion and causes owner rejections.
  • Failing to reflect approved change orders or interim pricing adjustments, which leads to reconciliation differences and payment disputes.
  • Using inconsistent measurement units or baselines between the SOV and field records, making it impossible to verify quantities during review.
  • Missing or unsigned certification blocks and metadata that administrators require before approving disbursements, delaying payments.

Step-by-step: preparing and submitting a Business SOV Document

Follow a consistent, auditable sequence to prepare the SOV, confirm values, attach supporting change orders, and route for approval.

  • 01
    Prepare SOV: List contract items and baseline values.
  • 02
    Apply Changes: Record approved change orders and adjust totals.
  • 03
    Calculate Billing: Compute completed-to-date and current billing.
  • 04
    Route for Approval: Submit with certifications and attachments.

Typical digital workflow settings for SOV submission

Configure routing, approvals, and attachments to match contract requirements and lender conditions.

Field Configuration
Approval Sequence Owner → Lender → Contractor
Attachment Requirements COs, invoices, lien waivers
Signer Authentication Email plus SMS or KBA
Retention Policy Keep signed copy for 7+ years

How electronic SOV submission typically flows

A standard eSubmission streamlines review while preserving an audit trail for each approval step.

  • Upload: Attach the SOV and supporting documents.
  • Place Fields: Add signature, date, and numeric fields.
  • Send to Signers: Route in the contract-specified order.
  • Capture Audit Trail: Record timestamps, IPs, and actions.

Digital requirements and integrations to consider

Integration with project management and accounting systems reduces manual rekeying and preserves financial consistency.

  • Authentication Options: Email, SMS, or KBA
  • File Formats: PDF, DOCX supported
  • Integrations: Connect to ERPs and CRMs

Common timing rules and processing expectations

Payment applications and SOV submissions typically follow contract-specified cycles; adhere to those dates to preserve payment rights.

Monthly Billing Cycle:

Submit by the contract’s defined cutoff each month.

Owner Review Period:

Allow the contract-specified review window (commonly 14–30 days).

Retainage Release:

Triggered by substantial completion or final acceptance.

Change Order Approval:

Approved COs must be incorporated before billing increases.

Dispute Timelines:

Raise objections within the contract’s notice period.

Key milestones from submission to payment

Track each stage from SOV creation through approval to ensure timely funding and reduce dispute risk.

01

Pre-Billing Reconciliation

Confirm quantities and COs before creating the SOV.

02

Submit Payment Application

Send SOV and attachments to the owner and lender as required.

03

Approval and Certification

Owner or certifier reviews, requests adjustments, or certifies for payment.

04

Disbursement

Owner or lender processes payment per contract terms.

eSignature pricing and capability comparison relevant to SOV workflows

Evaluate platform cost, bulk-send support, audit trail, and HIPAA/BAA availability when selecting an eSignature provider for SOV processing.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes Yes No No

Practical tips for accurate and efficient SOV completion

Adopt consistent formats, centralize attachments, and use controlled templates to reduce review cycles and errors.

Use a Standard Template
Create a contract-specific SOV template with predefined columns to ensure consistency across billing periods and reduce reviewer confusion.
Attach Supporting Documents
Include approved change orders, invoices, and inspection reports to substantiate billed amounts and speed approvals.
Validate Math and Totals
Double-check percent calculations, retainage, and cumulative billed amounts before submission to avoid rejections.
Preserve an Audit Trail
Record preparer, reviewer, signer, and timestamps to support lender draws and defend against disputes.

Industry scenarios illustrating SOV usage

Real-world examples show how SOVs reduce friction across financing, construction draws, and owner approvals.

Construction Draws

A general contractor submits an SOV tied to monthly progress reports

  • lender requires certified SOV with CO attachments
  • the certified SOV enabled timely draw release and clear accounting for retainage and CO impacts.

Renovation Financing

A property owner uses an SOV to allocate loan proceeds across project phases

  • the escrow agent verifies line-item matching invoices
  • accurate SOVs prevented funding disputes and simplified closing reconciliations.

Frequently asked questions and troubleshooting

Answers to common questions about eSigning, notarization, and correcting Business SOV Documents during the project lifecycle.


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