J.7 SOV Checklist attachment.pdf

Schedule of Values (SOV) Checklist – Version 1.0 10/04/2019

Purpose This checklist is intended to:

1. Assist the contractor to build a Schedule of Values (SOV) to be submitted to the Department of

Labor (DOL) Contracting Office (CO) for approval through the Contracting Officer’s Representative (COR).

2. Present the minimum expectations from the owner’s perspective, for a schedule of values submittal. It is imperative that the contractor’s estimator has a thorough knowledge of project specifications, prior to commencing the development of the SOV. The following are only a few guidelines selected from industry guides (i.e. AACE, AIA, etc.), to focus on.

Estimated Values The initial SOV shall allocate the entire contract sum to the various portions of the work described in the Statement of Work (SOW). The following items should be considered in the estimate. The following items should be considered:

❑ Use the entire contract time in the schedule, starting from the NTP to contractual completion date.

❑ The SOV should contain a breakdown of the project value into work items planned to be executed on site.

❑ The breakdown in the SOV should be driven from the work items described in the SOW, Contract of the project, and/or from the work activities created in the contractor’s own construction schedule.

❑ The use of categories (by building, by location, by floor, by trade, etc.) in the SOV is acceptable and recommended. However, as a recommendation, every category must be broken down into increments of less than $20,000 as separate line items unless such breakdown is not applicable for a relevant work item in the project (i.e. a design package of inseparable construction elements, a bulk purchase order of same merchandises, a bond or an insurance return, etc.).

❑ No vague line items that can have a different interpretations of work included in them should be used in the SOV (i.e. labor in building x, equipment in building y, etc.). The items need to contain tangible construction elements in the project that can be measurable to be used as a reference when evaluating the construction progress and completion of work along the whole project lifecycle afterwards (i.e. utilities relocation for building x, MCCP installation in building y, fire alarm testing in building z, etc.).

❑ Bonds and Insurance cost shall be identified as a separate line item cost within the SOV ❑ General Conditions cost shall be appropriately distributed across the life of the project.

❑ General Conditions cost shall be identified as two separate line item costs within the SOV:

❑ General Conditions – NTP through Substantial Completion ❑ General Conditions – Substantial Completion through Contract Closeout ❑ Preparation and delivery of the required closeout documents (O&M Manuals, as‐built drawings, Warranties/Guarantees, etc. as identified in Section G.9 PAYMENTS TO CONTRACTOR and G.19

Schedule of Values (SOV) Checklist – Version 1.0 10/04/2019

CONTRACT CLOSEOUT of the contract) shall be identified as a separate line item costs within the SOV.

❑ Profit shall be evenly distributed across all line item costs. A separate line item cost for profit is not permitted.

Coordination with Schedule Updates Unless stated differently in the contract, the SOV should be submitted with the construction schedule, and must be approved prior to 1st payment. The construction schedule and SOV delivery date requirement is specified in the contract, which is normally within 14 calendar days of receipt of Notice to Proceed (NTP) of the project. The following items should be considered in the submittal:

❑ Correlate cost line items in the SOV to corresponding activities in the construction schedule.

This can be done by adding a column in the SOV table which list the corresponding activity IDs in the construction schedule associated with each line item in the SOV, or adding an activity code in the construction schedule in which list the corresponding line item(s) in the SOV. Both methodologies are acceptable, and at minimum, one of them is required to start reviewing a

SOV submittal.

❑ At the end of each month corresponding with the approved billing cycle, the SOV will be used as the main tool in monthly pay application processing, and as a valuable tool in evaluating progress of work on site as a completion percentage for each line item. The construction schedule update should be concurrently prepared and reflect the same agreed‐upon values in the SOV for the corresponding month. Both of those two documents/submittals will be used to evaluate finished work at the end each month for the review and approval of all payment applications.

❑ For contracts where the A/E is providing Contract Administration Services, the draft monthly invoice, schedule update and schedule narrative are to be submitted to the DOL COR, A/E and ESC PM within three business days of the monthly walkthrough. All three will be reviewed and discussed during the monthly walkthroughs which will be scheduled to take place within seven

(7) business days after receiving all documents. The intent is to finalize all the progress documentation of a relevant month within one week of the next month in order to not delay payments approval or fall behind in the next month’s updates.

❑ For Design‐Build or Construction contracts without A/E Contract Administration Services the draft monthly invoice, schedule update and schedule narrative are to be submitted to the DOL COR and the ESC PM within three business days of the monthly walkthrough. All three will be reviewed and discussed during the monthly walkthroughs which will be scheduled to take place within seven (7) business days after receiving all documents. The intent is to finalize all the progress documentation of a relevant month within one week of the next month in order to not delay payments approval or fall behind in the next month’s updates.