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Schedule of Values (SOV)
What is a Schedule of Values (SOV)?
A Schedule of Values (SOV) is a detailed breakdown of a construction contract that itemizes the total contract amount into specific work categories, phases, or deliverables. It shows the dollar value assigned to each component of work that’ll be completed during a construction project. As such, the SOV is a critical component of successful project and cash flow management. It also lays the groundwork for progress billing and payment applications (like AIA® G702/G703® forms).
Here’s how it works:
- Contractors create initial SOVs that allocate contract value across work phases.
- They maintain the SOVs to align with actual work schedules and ensure billing requests match project progress.
- SOVs get updated when changes occur on the job, altering the original scope and budget.
As you can imagine, managing multiple SOVs across projects while tracking actual costs against line items becomes complex and time-consuming.
Siteline streamlines this entire process by integrating with major construction ERPs and accounting software. Subs import project data from their ERP into Siteline, compile and send pay apps directly in the system (accounting for any change orders), and then rest easy knowing that Siteline automatically syncs approved invoices back to the ERP.
The result? Faster billing cycles and quicker payments. Want to see how it works? Book some time with us.
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Other construction terms
What is a Partial Lien Waiver?
A Partial Lien Waiver, in the construction industry, refers to a legal document drafted to provide assurance to a payer that a contractor, subcontractor or materials supplier has received specified payments and waives its right to place a lien on the construction project to the extent of received payments. This document, typically used to maintain a clear title, only relates to the amount that has been paid up to a certain point. Subsequent payments would need additional waivers. It is advised to closely monitor Partial Lien Waivers as they help in avoiding disputes about the amount due, ensuring smoother construction operation.
What is a Notice of Intent to Lien (NOI)?
A notice of intent to lien (NOI)—sometimes called an intent notice or notice of non-payment—is a legal document that serves as a final warning from a subcontractor or supplier to the property owner, developer, or general contractor (GC) indicating their intent to file a mechanic’s lien against the property in the event of non-payment.
The purpose of an NOI is two-fold: First, it protects the subcontractor’s or supplier's rights to establish a legal claim against the property, allowing them to file a lien—or pursue legal action—if the outstanding payment is not made within a specific time frame. Second, it motivates the responsible party (i.e., property owner, developer, or GC) to settle the outstanding payment(s). This is because once a mechanic’s lien is filed, the property owner can’t sell or refinance the property until the debt is settled.
Currently, NOIs are only legally required in nine states:
- Arkansas (10 days before filing lien)
- Colorado (10 days before filing lien)
- Connecticut (Within 90 day lien period)
- Louisiana (material suppliers on residential projects 10 days before filing lien)
- Missouri (10 days before filing lien)
- North Dakota (15 days before filing lien)
- Pennsylvania (30 days before filing lien)
- Wisconsin (30 days before filing lien)
- Wyoming (10 days before filing lien)
However, regardless of state requirements, sending NOIs can be a beneficial and inexpensive step that increases subcontractors’ chances of getting paid (ideally without actually having to file a lien). Note that subcontractors must first submit a pre-lien (or preliminary) notice before submitting an NOI. Making both of these a standard part of accounting processes for past-due payments can improve A/R collection processes—and get payments in the door faster.
Along this vein, Siteline empowers subcontractors by providing visibility into outstanding payments across all projects, alerting them when it's time to pursue overdue balances—or issue an NOI for the most persistent cases.
To experience how Siteline can help your subcontracting business proactively manage payment processes, leverage NOIs when necessary, and accelerate cash flow, book a personalized demo today.
What is a Zero-Balance Account?
A zero-balance account (ZBA) is a financial tool commonly used in construction accounting where the account balance is maintained at or near zero. Funds are transferred to the ZBA as needed to cover expenses or payments, typically from a parent account. Once a transaction has been made from the ZBA, that amount spent is automatically transferred from the parent account, so the ZBA balance returns to zero.
In the complex world of construction projects—where multiple subcontractors are involved—ZBAs allow the general contractor (GC) to closely monitor and manage cash flow for each subcontractor on the project. This system prevents excess funds from sitting idle in numerous accounts—and potentially forgotten as the project progresses. It also provides a clear audit trail for each subcontractor’s expenses, making it easier to track costs against budgets to identify any discrepancies or unusual spending patterns. Additionally, ZBAs can help reduce the risk of fraud or unauthorized spending, as funds are only transferred on an as-needed basis.
ZBAs provide a level of control and visibility that is crucial for maintaining liquidity and profitability—much like Siteline. Siteline allows subcontractors to easily track their inflows and outflows, providing a clear financial picture of each project and the company overall. Interested in learning more? Schedule your personalized Siteline demo here.
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