How to create an effective value table for projects

[jrineakter]

Imagine overseeing the construction of a new hospital wing, a $5 million project lasting 18 months, with multiple subcontractors, intricate medical systems, and strict regulatory requirements.

When taking on this complex construction project, you realize that you need a comprehensive document to keep track of all the work that needs to be completed. This includes labor, expenses, inventory, permits, and any other details related to this multi-million dollar project, which spans multiple contractors and hundreds of tasks.

That's where a SoV (Social Values) program comes in.

In this blog we will discuss the table of values, why it is important for construction project managers, when to use it, and the benefits of creating one.

What is a table of values?
A table of values ​​is a comprehensive document that breaks down the total contract value of a construction project into smaller, manageable items to indicate which element or albania number data task of the project costs how much.

It is used by contractors, project managers and construction managers to track and manage finances and the number of tasks required to complete a construction project.

Each item in the value table represents a specific component of the project, such as site preparation, foundation work or electrical installations, along with its associated cost. This detailed cost breakdown is a key reference point for a project owner throughout its entire duration.

For example, in the case of a residential project, the table of values ​​might look like this:


The value table plays an important role in construction project management because:

A value schedule helps predict and manage cash flow throughout the project lifecycle. By breaking down costs, project managers can forecast expenses and plan finances accordingly to ensure consistent cash flow.
As work is completed, it is easy to compare actual progress to the scheduled value for each item.
The value schedule helps to have a smoother payment process . Progress payments are usually based on the percentage of work completed on each item, making it easier to prepare and verify payment requests.
By providing a detailed breakdown of project costs, the table of values ​​helps to better control costs and identify any deviations from the project budget early. This helps everyone stay on track and avoid going over budget or on schedule.
When to use a construction value table
Although a table of values ​​is beneficial for most projects in the construction industry, it is particularly crucial for:

Use Case 1: Large-scale commercial projects with complex phases and multiple subcontractors
These projects can involve intricate workflows and numerous interdependencies. A value schedule helps manage complexity by breaking the project into manageable components.

It also facilitates better coordination of subcontractors, ensuring that each party's work and associated costs are clearly defined and tracked.

Case Study 2: Projects where close monitoring of cash flow and project progress is essential
For projects with tight budgets or strict deadlines, a schedule of values ​​becomes an invaluable tool for a project manager.

Allows real-time tracking of expenses against budgeted amounts, which helps to identify potential cost overruns early. It also promotes accurate progress reporting, allowing construction managers to calculate the earned value of a project .

Use Case 3: Projects with Progress Billing or Milestone-Based Payments
In this type of payment structure, the table of values ​​serves as the basis for determining payment amounts . It allows accurate calculation of percentages of work completed.

This approach helps maintain a healthy cash flow for the contractor, ensuring fair and timely payments. It also gives the project owner a clear idea of ​​how their funds are allocated throughout the project lifecycle.

Case Study 4: Construction work where project owners or lenders require detailed cost breakdowns
Some project owners or financial institutions require the use of a value table for the sake of transparency and risk management.

It provides them with a complete view of project costs , helping them assess financial risks, make informed decisions and ensure funds are used as intended.

Note: Even for smaller projects, a simplified table of values ​​can help provide valuable information, improve project management, and serve as a guide to predicting the finances and time required for similar projects in the future.