Front-end loading is the practice of inflating the dollar value assigned to early-phase line items in a schedule of values (mobilization, demolition, site prep) so that early progress payments cover a larger portion of the total contract value. The contractor receives more cash early and finances less of the project from working capital.
Owners and architects watch for front-end loading during SOV review because it shifts financial risk to the owner. If the contractor abandons the project after early phases, more contract value has already been disbursed than the work-completed-to-date justifies. Most commercial owners will negotiate down inflated early line items during SOV approval. Modest front-end weighting is common; aggressive front-end loading creates trust issues and can lead to SOV rejection.