Schedule of Values should be created when and reviewed to avoid under- or overpayments?

Schedule of Values should be created when and reviewed to avoid under- or overpayments?

• A. Shortly after contract award
• B. Prior to construction phase
• C. Shortly after project completion
• D. Shortly after procurement phase

Answer: (A)

The Schedule of Values is a detailed breakdown of the contract price into elements of work used to authorize and track progress payments. It should be created shortly after the contract award so there is a clear, agreed-upon basis for paying for portions of work as construction begins. Once in place, it’s reviewed and updated regularly during the construction phase to reflect actual progress, changes in scope, and costs. This ongoing review helps ensure payments align with work completed, preventing overpayments when less work is done or underpayments when more is completed than anticipated. Creating and validating the SOV early gives the project a reliable payment framework right from the start of construction.

The Schedule of Values is a detailed breakdown of the contract price into elements of work used to authorize and track progress payments. It should be created shortly after the contract award so there is a clear, agreed-upon basis for paying for portions of work as construction begins. Once in place, it’s reviewed and updated regularly during the construction phase to reflect actual progress, changes in scope, and costs. This ongoing review helps ensure payments align with work completed, preventing overpayments when less work is done or underpayments when more is completed than anticipated. Creating and validating the SOV early gives the project a reliable payment framework right from the start of construction.