Schedule of values: a worked G703 example (with the math checked)

The short answer: a schedule of values breaks a construction contract into line items whose dollar values sum to the contract total. On an AIA G702/G703 pay application it is the G703 continuation sheet, columns A through I, and three formulas govern every line: G = D + E + F (total completed and stored to date), H = G ÷ C (percent complete), and I = C - G (balance to finish). Two totals tie the sheet to the certificate: the sum of Column C must equal Line 3, the contract sum to date, and the sum of Column G must equal Line 4. On a $200,000 site-work contract with $50,000 of previous work, $35,000 completed this period, and $10,000 in stored materials, Column G totals $95,000, and that exact figure must appear on the G702 as Line 4. A correct schedule of values is one you can prove ties, line by line and in total.

The columns, briefly

A item number, B description, C scheduled value (this line’s share of the contract), D work completed in previous applications, E work completed this period,F materials presently stored, G total completed and stored to date (G = D + E + F), H percent complete (H = G ÷ C), and I balance to finish (I = C - G). That’s the whole grid. The rest is filling it in without breaking those three identities.

A worked example

A $200,000 site-work contract broken into four lines, at an application where the job is partway along. Every G is D + E + F; every I is C - G; the column totals are the figures that must carry up to the G702.

Read line 3: 0 + 15,000 + 10,000 = 25,000 (that’s G), 25,000 ÷ 60,000 = 41.7% (H), 60,000 - 25,000 = 35,000 (I). Every other row checks the same way, and the totals row is each column added down. Column C sums to the $200,000 contract; Column G sums to $95,000, which is what must appear on the G702 as total completed and stored (Line 4).

The next three sections follow this same project through the three situations that break schedules of values in practice: a change order, stored material getting installed, and a line billed past its value.

What happens when a change order arrives?

Midway through the job the owner approves a change order: relocate a storm drain, $15,000. On the schedule of values that is a new line, not an edit to an existing one: line 5, Storm drain relocation, C = 15,000, every other column zero until the work starts, I = 15,000. Column C now sums to $215,000, and the certificate has to move with it. Line 1, the original contract sum, stays at $200,000. Line 2, net change orders, becomes $15,000. Line 3 = Line 1 + Line 2 = $215,000. A change order never edits Line 1; it lands in Line 2, and after every change order the sum of Column C must still equal Line 3.

The failure mode a receiver sees: the new line appears on the G703 while Line 2 on the G702 still reads zero, so Column C sums to $215,000 against a Line 3 of $200,000 and the application cannot be certified. The reverse is worse: an existing line’s C quietly raised with no approved change order behind it. Either way the tie between the sum of Column C and Line 3 is the check that catches it.

What happens to stored material the next period?

On line 3, Utilities, $10,000 of pipe sits in Column F: delivered to the site, billed as stored, not yet installed. Stored material is value the sub has already been paid for once. When the pipe goes in the ground the next period, the amount has to move out of F and into E. Here is the same row across two applications, assuming installing that pipe is the only utilities work next period:

Next period’s D is this period’s D + E (0 + 15,000 = 15,000). The installed pipe shows up as E = 10,000, F drops to zero, and G stays exactly $25,000, because installation converts stored value into completed value; it does not create new value. The third row is the error: E takes the $10,000 while F keeps it too, G jumps to $35,000, and the sub is paid twice for the same pipe. A line whose F never falls while its E rises is double-counting stored material, and the overstatement equals the stored amount.

What does a line billed over 100 percent mean?

Suppose Earthwork hits rock and the sub, instead of pricing the extra work, keeps billing against the line until G reaches $88,000 on a C of $80,000. Then H = 88,000 ÷ 80,000 = 110% and I = 80,000 - 88,000 = -8,000. A negative balance to finish is the sheet telling you the line has billed more than the contract ever allocated to it. H over 100 percent means billing beyond scheduled value, and the fix is a change order that raises Column C, not a bigger number in Column G.

Priced correctly, the rock work becomes a change order: Line 2 rises by the agreed amount, Line 3 moves with it, and either the Earthwork line’s C grows or a new line carries the extra scope, which brings H back under 100. As the receiver, do not certify a line with a negative I. Send the application back for the change order first, because certifying it means paying for scope the contract does not contain.

Where a schedule of values goes wrong

Every failure above is a broken identity: a Column C that no longer sums to Line 3, a G that stopped equaling D + E + F after a manual edit, an F that never falls while E rises, a D that does not match what last month’s application reported as D + E. That makes each one catchable rather than a matter of opinion, and it is what a reviewer’s checklist works through in order. When the sheet and the certificate disagree and you need to trace the gap to the exact cell, see what to do when the totals stop tying.

Checking a real one fast

On a four-line example you can verify the math by eye. On a real continuation sheet of 40, 80, or 150 lines across several pages, doing it by hand is where errors slip through. PayAppCheck reads the whole schedule, recomputes G, H, and I on every line, sums each column, and confirms the totals carry up to the G702. Any cell that does not tie is flagged. If you need the numbers in a spreadsheet, see how to convert a G703 to Excel without retyping it. If you are building the schedule of values rather than checking one, start from the free AIA-style G702/G703 Excel template, where the columns above are already wired up as formulas.

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