Build Ahead

A New Payment Instrument for Offsite Construction: Introducing the CTO Schedule of Values

Apr 28, 2026

The Center for Offsite Construction has posted a new April 2026 revision of From Handshake to Hardware: Questions & Pathways to Provide North American Offsite Construction with Uniform Law & Commerce. This revision advances the paper’s central argument that offsite construction needs legal and commercial tools built for products, interfaces, custody, title, risk, and acceptance.

The most important addition is Appendix F — Toward a CTO Schedule of Values.

Traditional schedules of value were built for Engineer-to-Order construction. They organize payment around site-based work categories and progress toward “work in place.” Offsite construction behaves differently. A bathroom pod, kitchen pod, panel, cartridge, or roof assembly gains value before it reaches the jobsite: when it is ordered, fabricated, assembled, shipped, staged, rigged, hoisted, installed, commissioned, and accepted.

The proposed CTO Schedule of Values gives project teams a way to record that sequence. The first worksheet tracks each CTO product instance, including make, model, catalog reference, applicable interface standard, interface coupler, custody holder, title holder, risk-of-loss holder, insurance mechanism, deposit trigger, conformance evidence, and staged acceptance record. The second worksheet aggregates all CTO products into an executive project summary.

This is an early prototype, not a finished contract form. Its purpose is to help owners, manufacturers, contractors, lenders, insurers, lawyers, and AHJs see what a product-based payment and custody instrument might need to capture.

The next step is to connect this work more directly to CfOC-ICC-1220, CfOC-ICC-1230, CIS files, and the broader CTO file type, so that future standard forms of agreement can reference products, interfaces, and lifecycle events with greater precision.

Learn more at the Center's website, or contact us directly.