Contracts and schedule of values
Create a customer contract on a job, break it into a schedule of values, set retainage terms, and keep the contract value current through change orders.
- Plans
- Advanced and above
- Availability
- Available
- For
- Owners, Accountants, Bookkeepers
- In KontoCore
Projects → Contracts
What this does
A contract states what the customer agreed to pay. Its schedule of values lists billable lines that add up to the contract value; progress invoices bill against these lines.
Billed to date per line is derived from posted invoices. Change orders add or adjust lines and update the contract value with history.
Before you start
- Create the customer and job.
How to
Set up a contract
- 1Open the job → Contracts → New.
- 2Enter contract value, dates, and retainage rate.
- 3Add schedule-of-values lines that sum to the value.
- 4Activate the contract.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Draft | Editable. |
| Active | Billable. |
| Complete / Closed | Fully billed or closed. |
Corrections, voids, and reversals
- After billing starts, change scope with change orders, not by editing lines.
Permissions
- Owners, administrators, and users with bookkeeping permission can create and post. View-only users can read but not change records.
What happens in your books
Contracts post nothing. Revenue is recorded when progress invoices post.
Common mistakes
- SOV lines that don’t sum to the contract value.
Troubleshooting
Can’t activate
The SOV total doesn’t equal the contract value.
Related articles
Job billing, progress applications, and retainageBill jobs by progress against the schedule of values or by time-and-materials from billable costs, with retainage held per line and billed-to-date always derived.Change ordersRecord customer and commitment change orders that adjust contract value, schedule of values, budgets, and subcontracts, with approval status and history.WIP and over/under billingReview work-in-progress by job — percent complete, earned revenue, billings to date — to see which jobs are over- or under-billed and post an adjusting entry when appropriate.Contracts, schedule of values, and WIPProgress billing from a schedule of values, change orders, commitments, retainage, and work-in-progress reporting.
Was this helpful?
Last reviewed October 6, 2026