Contract documents

March 27, 2024

Table of Contents

Introduction

Benefits of a schedule of values

The Details

Conclusion

 Introduction

 A schedule of values summarizes every function on a construction project. It’s an amazing tool that provides a detailed account of the budget, maintains timeline integrity, and monitors the percentage of the contracted work that is complete. From inception to completion, the schedule of values plays a major role in a project’s success or failure. Suffice it to say that those who use this tool are more successful, while those who don’t often find themselves in a quandary.

Benefits of a schedule of values

 There are several benefits to using a schedule of values including the following:

1. Brings stability, order, and structure: No matter the size of a project, order on a construction site makes things better. Inefficiency, frustration, and missed deadlines are all byproducts of confusion. But with a schedule of values, there’s no second-guessing, as structure and stability rule the day.
2. Role clarity: A schedule of values brings structure to any project and gives clear directions on what moves to make, when to make them, and who needs to make them. The end result is a more orderly operation, yielding favorable results for all parties.
3. Fosters an environment of trust: A schedule of values is part of an open, transparent job site where trust is the guiding principle. The presence of trust means the environment is free from assumptions, and everyone is in a position to do their best work and deliver a successful project.
4. Seamless financials: Pay lags are a part of the construction mix. In many cases, they happen because it’s not clear where the project stands in terms of completion and payments due. These challenges are no longer present when a schedule of values is part of the mix. With a schedule of values, the contractor and stakeholder agree on the costs, due dates, and payment dates before the project commences, removing potential pay bottlenecks before they occur and allowing the job to run smoothly.

The Details

 A schedule of values is rooted in detail, and before it can become a working part of a jobsite, some basic information must be secured including:

• Name of the project and client: Be clear on the name and check for misspellings, as the smallest mistake can derail an entire project.
• Project number: Project numbers are more than random choices. They are an alphanumeric descriptor that a contractor assigns to a project. The project number identifies tasks and tracks work stages while keeping track of vitally important records.
• Contractor name: The contractor’s name is a must in all schedules of value documentation.
• Point of Contact: A reliable point of contact who is abreast of the project and understands the scope must be included.
• Addresses: Correct addresses for the client, including their billing address and the address where services are being provided.
• Architect information: Proper architect information is important and must be part of any properly constructed schedule of values. Architect information should include name, application date, and the architect application number.

Conclusion

Construction site can be chaotic and anything a contractor or professional has at their disposal to lessen the chaos should be applied. Construction sites can be chaotic. A schedule of values can lessen the chaos and set the path for a smooth project. If you’re a contractor, remember your success starts at the beginning by getting the buy-in of stakeholders. From there, be as detailed as possible, as attention to detail will make life easier as the project progresses. AIA Document A201-2017 General Conditions of the Contract for Construction is a powerful tool for contractors who are required to submit a schedule of values. When coupled with AIA Document G703-1992 Continuation Sheet, professionals have two of the most trusted resources in the industry.

In closing, remember a construction site can be challenging to manage, with noise, materials, people, and machines moving around. But with the proper tools in place, including a schedule of values, those challenges are lessened and, in many cases, removed entirely.

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.