Value of work to date (VOWD), also widely known as value of work done, is the value of the work actually completed on a project or contract at a given point in time, whether or not it has yet been applied for, certified or paid.
VOWD is widely used by clients, particularly utilities and infrastructure owners, for monthly financial reporting. Because applications, certificates and invoices lag behind progress on site, VOWD gives a truer picture of the cost incurred to date. The difference between VOWD and the amount invoiced or paid is usually posted as an accrual at month end. VOWD is also used to measure progress against budget and to forecast cash flow and outturn cost. When assessing VOWD, a QS should:
- include work completed but not yet applied for
- take account of agreed and pending changes
- avoid double counting when comparing VOWD with amounts already invoiced to calculate the accrual
Related terms: valuation, accrual, Price for Work Done to Date, outturn cost.
