A list of basic contract segments, in both labor and material, where each line item has a description of work and a cost, used to determine progress payments, is known as what?

A list of basic contract segments, in both labor and material, where each line item has a description of work and a cost, used to determine progress payments, is known as what?

• A. Schedule of Variance
• B. Schedule of Materials
• C. Schedule of Values
• D. Schedule of Loans

Answer: (C)

The concept being tested is Schedule of Values. It’s a detailed breakdown of the entire contract price into individual line items that describe pieces of work and assign a specific cost to each item, covering both labor and materials. This itemized plan serves as the basis for progress payments, because as work is completed and approved, the corresponding value in the schedule can be billed to the owner. The Schedule of Values is typically prepared at the start of the project, reviewed and approved, and updated as changes occur, so payments can be made proportionally to the value of work actually finished. It stays aligned with the contract total and helps manage cash flow and track progress. The other terms don’t fit this specific function: a Schedule of Variance relates to schedule performance versus plan, a Schedule of Materials lists materials but isn’t the standard basis for progress payments, and a Schedule of Loans isn’t relevant to construction billing.

The concept being tested is Schedule of Values. It’s a detailed breakdown of the entire contract price into individual line items that describe pieces of work and assign a specific cost to each item, covering both labor and materials. This itemized plan serves as the basis for progress payments, because as work is completed and approved, the corresponding value in the schedule can be billed to the owner. The Schedule of Values is typically prepared at the start of the project, reviewed and approved, and updated as changes occur, so payments can be made proportionally to the value of work actually finished. It stays aligned with the contract total and helps manage cash flow and track progress. The other terms don’t fit this specific function: a Schedule of Variance relates to schedule performance versus plan, a Schedule of Materials lists materials but isn’t the standard basis for progress payments, and a Schedule of Loans isn’t relevant to construction billing.