What is a Notice of Commencement (NOC)?

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.

Unit Price Billing is a method used in the construction industry where costs are determined based on agreed-upon rates for specific types of work. This method means you pay for materials and labor based on the quantity used or amount of time expended. For instance, if you're building a skyscraper, payment might be determined by a set price for every square foot of construction rather than a lump sum for the entire project. Unit Price Billing allows for more flexibility as changes occur during construction, with pricing adjustments made according to altered quantities. It provides transparency and can potentially lead to cost savings if actual quantities are less than projected.

Double-entry accounting is a system used extensively in the construction industry, where every financial transaction has equal and opposite effects in at least two different accounts. The objective is to ensure the sum of all debits always equals the sum of all credits, thereby maintaining balance in the books. For example, if a construction company purchases building materials, it records the transaction as a debit in the inventory account but a credit in the cash account. This system allows for easier financial analysis, error tracing, and fair representation of a company’s financial position. This method also manages the complexity of financial transactions in the construction industry, increasing financial reliability and providing valuable insights on company performance.