Cash Flow Tip 7 - Schedule-of-Values

Having a good Schedule-of-Values (SOV) and billing format will set you up for cash flow success throughout the project.

D. Brown Management Profile Picture
Share

Even the best project teams will have a difficult time overcoming a poorly set up SOV, so make sure that you invest the right amount of time in this process up front.  

Cash Flow: Tip 7 Schedule of Values (SOV) and Billing Formats
  • Develop a billing format that is easy to reconcile internally with changes and progress billings.  
  • Ensure that the billing format is easy to understand for the customer and easily integrates with their systems.  
  • Have the project schedule in-hand or at least know the basic flow of the project before developing your SOV.
  • Develop your SOV after you develop your budget and make sure they are integrated so your cash flow looks good based on the project schedule.  
  • Have a structured internal review process to ensure both good cash flow AND that you are not introducing other risks based on how the SOV is loaded.  
  • Looking at the map of your cash flow process in the project, sell the SOV to the appropriate people to ensure smooth progress billings. Use this as an opportunity to build relationships. 

Cash Flow Tip 7 - Schedule-of-Values
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow Tip 7 - Schedule-of-Values
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Two Critical Things Every Business Must Do
The business of construction is both challenging and exciting, with days full of risks and rewards. Jack Stack calls it “The Great Game of Business,” where he describes how to create a culture of ownership.
Selecting and Managing People for a Job Role
A job role is a collection of related tasks and decisions to achieve a set of outcomes. A person brings a wide range of desires, skills, and experience to that job role. Aligning these is the discipline of management.
Organizational Change and Sustainable Growth
Improving the rate that change is adopted across the whole company becomes increasingly more important and more challenging as a contractor grows. We will cover the basics of change, including how it is linked to strategic choices and management.