Action Guide: Classify for Schedule of Values

A Schedule of Values (SOV) is a detailed statement of project costs, breaking down labor, materials, subcontracting, and other expenses. For brokers, funders, and underwriters, these documents are critical to assessing project structure and financial soundness.

But SOVs come in a variety of formats, from PDFs and Excel sheets to scanned copies, and without automation, teams spend hours sorting, labeling, and manually deciding where each file belongs.

Heron automates classification for the Schedule of Values, recognizing the document type upon intake and tagging it correctly within the deal record.

This makes sure that every incoming SOV is instantly identified, routed, and ready for further actions such as scrubbing, validation, or compliance checks.

By classifying these documents automatically, Heron removes friction from the intake process and eliminates one of the most tedious, error-prone tasks in financial document management.

Use Cases

• Instant document recognition: Heron scans each incoming file and identifies it as a Schedule of Values, distinguishing it from other project or underwriting documents.
• Smart folder routing: Once recognized, SOVs are automatically placed in the correct deal or merchant record folder within the CRM.
• Handle mixed submissions: When brokers send multiple files, such as contracts, balance sheets, and SOVs together, Heron classifies each correctly, reducing sorting confusion.
• Identify variants: Heron differentiates between initial, revised, and final SOV versions, applying version tags for accurate record keeping.
• Multi-format compatibility: Works with PDFs, Excel spreadsheets, and scanned images, ensuring consistent results regardless of format.
• Auto-tag with metadata: Every classified SOV receives tags for merchant name, submission source, and date, ensuring downstream traceability.

This classification layer provides order, structure, and traceability from the very first step of document processing.

Operational Impact

Automated classification simplifies intake, reduces errors, and accelerates deal readiness.

• Speed: SOVs are identified and routed instantly upon receipt.
• Accuracy: Eliminates manual guesswork and inconsistent naming.
• Efficiency: Reduces human sorting time to zero, allowing staff to focus on underwriting.
• Data integrity: Ensures the right file types move through the correct workflow stages.
• Visibility: Every document has a clear tag, owner, and timestamp, improving reporting accuracy.

By introducing automatic document classification, Heron transforms the messy intake stage into a clean, structured workflow.

Document Intelligence in Action

Heron’s classification process blends machine learning with rule-based logic to correctly identify every SOV, regardless of format or naming convention.

• Keyword detection: Heron detects terms like “Schedule of Values,” “Contract Amount,” and “Line Item Breakdown.”
• Layout recognition: Identifies structured columns typical of SOVs, such as “Description of Work,” “Scheduled Value,” and “Completed to Date.”
• Data structure analysis: Recognizes numeric tabular layouts and key totals at the end of the sheet.
• Cross-document comparison: Distinguishes SOVs from invoices, balance sheets, and project budgets based on contextual markers.
• Version differentiation: Uses metadata to detect if the document is an updated version and links it to the existing record.

This deep analysis guarantees that no matter how SOVs arrive (scanned, typed, or formatted), Heron knows exactly where they belong.

Workflow Integration

Classification happens seamlessly within Heron’s intake pipeline.

1. Document arrival: Brokers or contractors send files via shared inbox, portal, or API.
2. Initial scan: Heron reads the document header, metadata, and layout.
3. Document type identification: The system labels the file as a Schedule of Values.
4. Metadata tagging: Merchant name, sender address, and submission date are added.
5. Routing: The classified SOV is sent to the correct deal record in the CRM.
6. Next steps: The document proceeds automatically to scrubbing or completeness checks.

This structured flow makes classification invisible yet essential; every file goes to the right place instantly.

Governance and Quality Controls

Heron’s classification workflow is built for enterprise-grade traceability.

• Audit trail creation: Every classified SOV includes a record of who submitted it, when it arrived, and where it was stored.
• Confidence scoring: Each classification includes a confidence percentage, showing how likely the identification is correct.
• Exception routing: Low-confidence files are flagged for human review to maintain accuracy.
• Access control: Permissions restrict who can move or edit classified files.
• Compliance-ready structure: Ensures that all SOVs are stored in predictable folders for audits.

This design prevents document loss, misfiling, or compliance lapses across hundreds of daily submissions.

Collaboration and Audit Benefits

Classified SOVs become instantly usable across teams.

• Underwriters: Access verified SOVs directly from deal records without searching.
• Operations teams: Gain real-time insight into submission status and file readiness.
• Compliance officers: View full document lineage from intake to decision.
• Brokers: Receive faster feedback when submissions are properly categorized.

These capabilities strengthen team alignment and ensure a clean, auditable submission process.

Business Outcomes

The automation of classification creates measurable operational and financial benefits.

• Reduced turnaround time: Files reach underwriting faster.
• Lower rework rate: Fewer misrouted or lost documents.
• Improved data quality: Consistent classification improves downstream analytics.
• Higher throughput: Teams process more deals without hiring additional staff.
• Better broker experience: Submissions are acknowledged and categorized instantly.

Automated classification improves both daily efficiency and long-term data reliability.

Benefits of Using Heron for Classifying the Schedule of Values

• Speed: Instantly identifies and routes every SOV to the right place.
• Accuracy: Consistent document labeling across multiple formats.
• Compliance: Creates audit-ready metadata automatically.
• Scalability: Handles high submission volumes seamlessly.
• Transparency: Keeps every stakeholder aligned with complete visibility.

Heron turns document chaos into structured intelligence, allowing brokers and funders to move faster with greater confidence.

FAQs About Classify for Schedule of Values

How does Heron recognize Schedule of Values documents?

Heron uses a mix of keyword detection, table recognition, and document layout analysis to identify SOVs accurately, regardless of file format.

What happens if a document is misclassified?

If confidence levels fall below a threshold, the document is flagged for human review. Once corrected, the system learns from the adjustment to improve future accuracy.

Can Heron distinguish between different versions of an SOV?

Yes. Heron detects changes in totals, version labels, and timestamps to associate new submissions with prior versions in the CRM.

Does classification work with Excel or scanned SOVs?

Absolutely. Heron reads structured Excel sheets, scanned PDFs, and even image-based submissions through OCR to classify them correctly.

How does automated classification help underwriting teams?

It saves hours of manual file handling, allowing underwriters to start review immediately with full visibility into the latest SOV version.