Understanding "Schedule of Values" Billing
Breaking job processes down into meaningful parts helps support invoicing in commercial work. February 8, 2008
Question
I have a contract that is requiring me to provide a schedule of values. I think I understand the basics but was hoping to get some feedback from those of you that are more familiar with doing these. Mainly ideas on the general layout and on getting paid in a reasonable manner, if there is such a thing. Any help would be appreciated.
Forum Responses
(Laminate and Solid Surface Forum)
From contributor R:
A schedule of values can be a tool to help you get paid, especially on a commercial project with multiple billings. The AIA has a form that is commonly used but a lot of contractors have their own. I've made a spreadsheet copy of my own which I use most of the time. The idea is to break the job down in the way you'd like to get paid. So for instance, my first line is Shop Mobilization, to which I assign a value of about 5% of the contract. My next line is Submittals, which has a value of about 10% of the contract. Then I might have a line for Solid Surface Materials at whatever the value of these materials is, then Casework Materials, then Paneling, followed by lines for fabrication of each of these items, followed by a sum for installation and 5% for project closeout. Each month I bill for a reasonable percentage of each line, depending on how much work is actually done, projecting a few weeks past the invoice date. You will find your billing gets accepted very readily with this kind of schedule, and if not, they can give you a reason.
From contributor J:
Glad this subject was brought up. I am in the process of bidding three commercial jobs, and was wondering how to go about working out a payment schedule to keep the cash flow moving, and my bills paid. This was a really big help. Looks like I have a couple of spread sheets to work out.
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