CATEGORY | Lump Sum

When it comes time to pay our cable bill or buy groceries, the process is fairly straightforward. We look at the bill or cash register, get out our wallets and cough up the money. Then we’re on our way. In the construction industry, the billing process is a bit more complicated. Projects that are in full swing have workers onsite from several different trades, materials getting delivered, equipment in use and other costs like that. The Owners of these projects release progress payments as the project continues (often monthly). The amount paid is supposed to represent the amount of work done since the last time they paid a bill. What determines how much any particular task of work is worth in comparison to the entire project? That’s where the Schedule of Values (SOV) comes in! So what should be included in a schedule of values? Here are 7 tips for contractors!