How a Schedule of Values Affects Cash Flow
The SoV plays a critical role in managing a project’s cash flow. It allows contractors to request interim payments based on completed work milestones. By breaking down the contract into individual components, it also provides transparency for both contractors and clients, ensuring that payments are linked directly to work progress.Best Practices for Managing a Schedule of Values
A well-prepared SoV should be detailed, clearly outlining each phase of work. Regularly updating the SoV as the project progresses will ensure accurate billing. Contractors should also ensure that each value assigned to the work items is reasonable and reflective of the actual cost.Related Terms: Interim Payment, Progress Payment