Owner - Build Your Project's Schedule of Values (SOV) from Scratch

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

Time: 20 min

Access: Web Only

 

Build a Project SOV from Scratch:

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.

Screen_Shot_2022-01-17_at_4.03.24_PM.png

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

Screen_Shot_2022-04-22_at_11.22.20_AM.png

  • 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)  No thanks, I'll start from scratch.

Action: Click "Create blank SOV"

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 Screen_Shot_2022-01-17_at_10.01.39_PM.png

 

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 findScreen_Shot_2022-01-17_at_9.57.59_PM.png
  • 2 Options with Existing Line Items:
    • Modify: Open and Change
    • Delete: Delete & Remove from SOV

Modify

Screen_Shot_2022-01-17_at_9.46.55_PM.png

Delete

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

Modifying the Line Item will look like this:

Screen_Shot_2022-01-17_at_6.10.04_PM.png

Each Line Item has the following options / inputs:

Type drop-down menu selection 6 Options - (determines where left-over money goes)
Name text input Owner/Contractor input
Details multi-line text input Owner/Contractor input
Quantity number input Owner/Contractor input
Unit drop-down menu selection multiple industry options 
Unit Cost x financial value input Owner/Contractor input
Budget auto calculated value auto calculated value

 

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.
Unit Name Definition Used For Subs/Material likely to use
each   single  Plumbing, Windows, Doors
lot   generic Cabinets, Framing, Roofing, OH&P
unit   generic HVAC
lin ft linear feet distance Trim, Baseboards, Gutters
sq ft square feet suface area Paint, Concrete, Flooring, Tile, Siding, Concrete
cu ft cubic feet volume  
lin yd linear yards distance  
sq yd square yards surface Carpet,
cu yd cubic yards volume Fill Dirt, Concrete, Mulch,
gallon   volume Paint, 
acre   surface area Clearing, Landscape, 
lb pound weight  
ton   weight Landscape, Hardscape, 
hours   duration Demolition, Day Labor, 
days   duration Demolition, Day Labor, 
weeks   duration  
months   duration Storage, Portable Toilets, 
heated sq ft heated square feet whole house volume Plans, HVAC, Electrical, Paint, 

 

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.     

 

 

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