By Sara M. Bour, Esq., Manager and Counsel, AIA Contract Documents
March 15, 2022
After a contractor is awarded work on a project, its contract with the owner may require the submission of a schedule of values in the early stages of the job. But what exactly is a schedule of values, and why is it frequently required on projects?
A schedule of values is a document submitted as part of the payment process on projects, and it assists with project management. It allocates the entire Contract Sum to various portions of the contractor’s work that are detailed in the construction schedule. A schedule of values can vary in appearance and data, but it typically takes the form of a table with rows itemizing portions of the contractor’s work. This itemization may be by sections of the contractor’s work or by subcontractors. Opposite each itemized portion of the work can be a short description, such as demolition, drywall, doors, or electrical, and the corresponding scheduled value (i.e. the allocated Contract Sum assigned to this segment of work). It may also include columns detailing the amounts of completed work covered by the previous and instant payment applications; value of stored materials; authorized adjustments or Modifications; percentage of completion; balance to finish; and retainage. AIA Document G703®-1992, Continuation Sheet is often used to record the submitted schedule of values.
Under §9.2 of AIA Document A201®-2017 General Conditions of the Contract for Construction the contractor is required to submit a schedule of values where the construction contract is based on a stipulated sum or Guaranteed Maximum Price. Before the contractor’s first application for payment, the contractor must submit to the architect the schedule of values allocating the entire Contract Sum to portions of the contractor’s work. The contractor must prepare the schedule of values in the form, and supported by the data to substantiate its accuracy, required by the architect.
A schedule of values is used as a basis for reviewing the Contractor’s monthly payment applications. It shows the percentage of completion for each of the Contractor’s activities. Under the A201, contractors must submit to the architect an application for payment prepared in accordance with the schedule of values. This means that the Contractor should complete this by breaking down the portions of the Work completed for the given payment period, and submit this data as part of its payment application. As the contractor progresses on the project, there may be changes to the schedule of values. Any changes to the schedule of values must be submitted to the architect and supported by data to substantiate its accuracy, as the architect may require.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.