A Schedule of Values is a detailed schedule apportioning the original contract sum and all change orders, among all cost code divisions or portions of the work. The Schedule of Values is based on the Guaranteed Maximum Price Contract. The Schedule of Values is the basis for all Contractor/Vendor invoices for hard and soft costs.
When using the Schedule of Values for pay applications the Contractor will bill on a fully substantiated basis. That is to say that the amount billed that month is actual project expenditures incurred. This value is then added to the total amount billed from previous pay requests. This total amount is the total work completed to date.
The balance to finish is then calculated by subtracting the total completed to date from the original line item total. The Architect and Owner’s Representative will then review and approve the amount due to the Contractor during that pay period.