It is too common for subcontractor schedules of values to the general contractor to be too loosely correlated with the general schedule of values to the owner. This may be in large part because the general schedule of values is one of the first project documents to be expedited to the owner. Therefore it is prepared and submitted before every subcontractor’s schedule of values is received or approved, possibly even before major bid packages are finalized.
If this is allowed to happen, an inordinate amount of subjectivity will be introduced into the process that will make correlating the amount due subcontractors with those amounts actually received on their behalf from the owner quite a challenge.
Avoid the arguments. Establish a procedure in the general schedule of values submission to the owner in which the values of major bid packages that have not yet been resolved are left as single lump sums in the first submission. When the respective schedules of values are received and finalized for the subcontractors, the lump sums on the general requisitions will be supplemented with this detail that will remain in that form for the duration of the project. Done in this way, early billings for the first items of work in process will not be delayed because of a late submission of the general schedule of values that was waiting for subcontractor breakdowns, and all eventual billings for each subcontractor will correlate on a one-to-one line-item basis with the general schedule of payments to the GC.
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