The schedule should be broken down into at least a sufficient amount of detail that will allow clear demonstration of the actual completed work. Many individuals resist providing great amounts of detail in the schedule of values. The fact, however, is simply that the greater the level of detail in the schedule, the easier it will be to consistently substantiate your billings.
Prior approval of the detailed schedule of values removes to that degree an amount of subjectivity inversely correlated with that level of detail. If, for example, a detailed schedule is approved at the beginning of the project, simply having the percent complete of the individual line items approved in the regular payment procedure gets their values approved automatically.
In contrast, an oversimplified schedule will have fewer, but larger, values for each general item. The larger the respective value, the more difficult it will be to justify in terms of percent complete in a given period. The final irony is that in order to actually justify billings on a large lump sum item, you’ll have to make up a detailed breakdown anyway. This will be an unofficial, unapproved breakdown that will then be subjected to intense scrutiny and debate.
Avoid the problem. Have your schedule of values in proper level of detail approved at the project’s onset, and thereby keep your billing reviews smooth and without major incident.
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