The Schedule of Values is the financial backbone of your draw package. Every dollar you request must trace back to a line item on the SOV. Every change order must be incorporated before the G702/G703 is completed. Every inspector on every draw will compare the percentage-complete column against what they can actually see on site. Discrepancies get flagged. Flagged packages get delayed or rejected.
This guide walks through how to set up an SOV correctly at the start of a project and how to reconcile it before each draw.
Setting Up the SOV at Project Start#
A good SOV is balanced, auditable, and granular enough to support field inspection without being so detailed it becomes unmanageable. The wrong SOV structure causes problems throughout the entire project life cycle.
Use CSI divisions as your organizing framework. The Construction Specifications Institute 16-division or 48-division MasterFormat gives inspectors and lenders a familiar structure they can quickly navigate. Even if your lender does not require CSI divisions, using them makes your SOV easier to cross-reference against inspection reports.
The front-loading problem. A front-loaded SOV assigns higher scheduled values to early-completing work items so the GC gets paid faster early in the project. Lenders and their inspectors know this pattern and scrutinize it. Obvious front-loading can damage the lender relationship and trigger additional inspections. Build your SOV to reflect actual cost distribution.
Separate stored materials as a line item. Some contractors embed stored materials into work-in-place values on each line. This hides them from easy inspection. Separate stored materials as their own column — this is what the G703 Column F is designed for — and attach supporting documentation per item.
Contingency lines. Include contingency as a separate SOV line if your contract allows contingency draws. Define the conditions under which contingency can be drawn and document each draw from contingency separately. Lenders watch contingency usage closely as a signal of project health.
SOV Reconciliation Before Each Draw#
Run these checks before completing the G702/G703 for each draw period.
Check 1 — Column C total equals current contract sum#
The sum of all scheduled values in Column C must equal the original contract sum plus all approved change orders incorporated to date. If it does not match, a change order has been approved but not posted to the SOV. Find it and post it before you complete the G702.
Check 2 — Column D matches the prior application's Column G#
Column D on the current G703 must exactly equal Column G from the prior G703. This is a mathematical check that only fails if someone edits prior-period numbers, which is never acceptable. If Column D does not match prior Column G, investigate before proceeding.
Check 3 — Column E is supported by invoices#
Every dollar in Column E for the current period should have a corresponding invoice in your invoice backup. Run a line-by-line comparison: for each SOV line with a Column E amount, confirm there is an invoice from the relevant subcontractor or supplier that covers that amount. A Column E amount with no supporting invoice is an unsupported billing — it will get flagged by the inspector or lender reviewer.
Check 4 — Column G never exceeds Column C#
Total completed and stored to date cannot exceed the scheduled value for that line item. A line billed beyond its scheduled value means either a change order was missed or work was overbilled. Neither is acceptable in a draw package without an explanation and the appropriate change order documentation.
Check 5 — Column H percentage-complete is field-verifiable#
The percentage complete in Column H will be compared against what a third-party inspector observes on site. If your percentage-complete claims are materially higher than what can be observed, the inspector will reduce them, which reduces the approved draw amount and creates a credibility problem for future draws.
A practical rule: be conservative on in-progress work and accurate on completed work. If a line item is 100% complete, bill it at 100%. If it is approximately 60% complete, bill it at 55% to 60% rather than 65% to 70%. Inspectors who see conservative SOVs approve them faster than those who see optimistic ones.
Check 6 — Column G total equals G702 Line 4#
The sum of all Column G values on G703 must exactly equal Line 4 on G702. This is a mathematical requirement. If it does not balance, do not submit the package. Find the discrepancy — it is almost always a line item that was updated in one document but not the other.
Common SOV Discrepancies and How to Resolve Them#
Invoice exceeds SOV line balance: The subcontractor invoiced more than remains in their SOV line. Either a change order is missing or the invoice is incorrect. Do not post the over-billed amount. Request a corrected invoice or process a change order before including the amount in the draw.
SOV line shows 100% but work is clearly incomplete: This happens when scheduled values are underestimated or when a line was billed to 100% prematurely. It creates problems for retainage release and final inspection. Correct it by adding a new SOV line for the remaining work via change order, or by amending the prior application through a credit/debit adjustment agreed to with the architect.
Stored materials billed but never incorporated: Materials that were stored but then damaged, returned, or substituted remain on the SOV as stored materials indefinitely unless corrected. Review the stored materials column each draw and remove or reallocate any item that is no longer on site or no longer applicable.
For the full context of how the SOV fits into the draw package, see the construction draw package template and the AIA G702/G703 guide.
The River construction draw workflow reconciles invoices against SOV line items automatically and flags every over-billed line, missing invoice, and change-order gap before you complete the G702/G703.