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Importance of Schedule Of Values in construction Form: What You Should Know

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Instructions and Help about Importance of Schedule Of Values in construction

Good day and welcome to HVAC 350. My name is Jill Patel, associate professor at Ferris State University. This lecture is going to be on Schedule Values. It is a relatively short lecture. Schedule of Values is a document put together once the project has been received by the mechanical contractor. It is used to validate billing. It will take the estimate that we use and break it down by division. If you recall from earlier in the semester, we had a 16-division format and a 40 plus division format. Inside each one of those division numbers, things are broken down by category. What this Schedule Values does is it breaks the entire project down by individual categories so that the superintendent, general contractor, or construction manager on the project can validate that we have a certain amount of work done that we say we have done. This is to protect the owner's interest so they don't overpay for completed items on the project. A lot of work is just sent there, but it's really a straightforward document. It outlines the sum of all the projects and individual items to come up with a total contract amount. It's a basis for submitting and reviewing progress payments for the owner. It really isn't time-related like the schedule, but quite often you'll see a schedule of values built around a schedule. As the project progresses, you may see some items in there that mirror the schedule. When we talk about the schedule of values, once we have our original project schedule created, somebody has to break out the estimate itself. We add labor and materials for each line item in there. Then, we compile the different line items and put them in the division numbers to create this document. When we look...