Front-loading can create trust issues and cash problems later.
In this article
Risks
Owner pushback.
Overbilling
WIP impact.
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Alternatives
Mobilization line.
Ethics
Honest values.
Late cash
Problems.
A closer look
Owners and lenders review schedules of values closely. Aggressive front-loading can cause rejected pay applications and leave the end of the job underfunded.
Where to start
Review your SOV for reasonable values per activity.
An example
A GC used a fair mobilization line instead of inflating early items. Pay applications were approved without disputes.
Common mistakes
Inflated values, hiding costs and late-job cash shortages.
What to track
Track over and under billings.
Questions to ask
Are values reasonable? Do we have a mobilization line? What does the lender expect?
Who owns it
PM prepares; controller reviews.
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Frequently asked questions
What is front-loading in construction?
Assigning higher values to early activities in the schedule of values to bill more money early in the project.