Purpose: Learn how to build a SOV from a BuildWallet Template and what it means.

Time: 20 min

Access: Web Only

Building an SOV from a Template

Scope + Budget = Schedule of Values (SOV)

Building a Schedule of Values is the backbone and spine of your project.  It is from the Schedule of Values everything will be both contracted out and paid from, so it is important to put in the work so you have the most successful project. 

*Remember this is an ACTIONABLE Platform, so “garbage in, garbage out”.  Start with your Best SOV and know you can always make changes as you see fit.

Action: Click “Build schedule of values” on your new Project Details page

• Enter YOUR Name for this project.
  • It can be anything that easily connects the project in your mind

Would you Like to use a Template?

1)  Yes please

Action: Click “Create SOV from template”

Critical Note about building and working with a BuildWallet SOV:

**CRITICAL SOV NOTE**

1 Line Item = 1 Vendor (Sub/Material Provider)

We cannot combine Line Items - they must be 1-to-1 relationship.

1 Line Item = 1 Subcontractor (or 1 Material Provider)

This is VERY CRITICAL to understand as you build out your SOV.  Every Line Item needs to be directed to a single Subcontractor, Material Provider, or Contractor for payment distribution. 

DO NOT do this:            Kitchen (supply/install) 1 lot x $18,000 =           $18,000

Instead DO this:             Cabinets (supply/install)              62 boxes x $200 =          $12,400

                                         Countertops (supply/install)       75 sq ft x $55 =                  $4,125

                                         Backsplash tile (supply)              62 sq ft x $15.50 =               $961

                                         Backsplash (install)                      56 sq ft x $6 =                     $336

While in DRAFT form, the SOV lines can be moved and manipulated freely.  Once the Owner and the Contractor agree and approve, then the Change Order tool must be used to modify the SOV after the project is made active.

If a line item is missed, or desired to be split out among multiple Subcontractors, there must be a Change Order issued creating a new Line Item and moving money between the two.

Parts and Pieces of the Schedule of Values (SOV)

• Project 1
  • Phase 1
    
    • Line Item #1
    • Line Item #2
    • Line Item #3
  • Phase 2
    • Line Item #4
    • Line Item #5
    • Line Item #6

Phases:

A Phase is the layer of organization that lies between the individual line items, and the total project as a whole.  These phases are arbitrary and can be made to any sub-section of work that the Owner and Contractor agree to. 

Examples of Residential Project Typical Phases

• Prep & Pre-construction
• Phase 1 – Demo
• Phase 2 – Structure
• Phase 3 – MEP Rough-In
• Phase 4 – Envelope
• Phase 5 – Interior Finishes
• Phase 6 – Finals
• Phase 7 – Landscaping
• Close Out

Platform Impact:

• The Owner will be responsible for signing-off and accepting each Phase to ensure completion and acceptance of the work accomplished.
• Only after the Phase is signed off by the Owner is the Contractor able to receive either the Phase Overhead and/or any margin they were able to buy-down from the original contract value.

How to Add a Phase:

Action: At the Bottom Right of the form you will see 

Line Items:

The Line Item is the smallest division of work.  Line Items are the backbone of this project platform and create the framework for the execution.  This is the hardest part of creating a project, but also the most necessary.

**REMEMBER** - Each Line Item can only be contracted to One (1) Recipient – like an individual Subcontractor, Material Provider, or Contractor.**

• Platform Impact:
  • The Line Items are initiated by the Owner, then negotiated with the Contractor.
  • NOTE: Change Orders are used to modify the SOV after a project is Activated.

How to Create a Line Item:

Action: At the bottom of every Phase you will find

Deleting a Line Item will remove it permanently from your SOV and project.

Modifying the Line Item will look like this:

Each Line Item has the following options / inputs:

Type Explained:

• Labor
  • For the Subcontractor who is going to provide Labor Only.
  • Any Balance Remaining is remitted to the Contractor upon successful completion and approval of the Phase.

• Labor & Material
  • For the Subcontractor who is both providing the Material and Installing it.
  • Any Balance Remaining is remitted to the Contractor upon successful completion and approval of the Phase.

• Material (Contractor Supplied)
  • For the Material Provider who is only providing the Material.
  • Any Balance Remaining is remitted to the Contractor upon successful completion and approval of the Phase.

• Material (Owner Supplied)
  • For the Material Provider who is only providing the Material.
  • Any Balance Remaining is remitted to the Owner’s BuildWallet upon successful completion and approval of the Phase.

• Overhead Fee
  • This is purpose built to separate compensation for the Contractor. Either Overhead or Profit. 
  • This entire amount will be remitted directly to the Contractor’s Wallet upon Owner approval.

• Note/Reminder
  • This type of Line Item has No Financial Value and is more of a place holder & reminder for the Owner/Contractor
  • No value can be attached to the Note/Reminder and no balance is ever distributed.

Create your SOV:

Now that you have all the tools necessary to craft a killer SOV!  Here is where the fun begins and your project starts to takes shape.  Use the tools provided and craft away until you have a DRAFT SOV and you feel comfortable with and want to share with others.          

The Next Step is to make your project LIVE and invite the rest of Your Team to work with you on this project.