CSI describes the schedule of values as the breakdown of the contract sum allocated to portions of the work (often by specification section, building system, or major components). It is used as the basis for reviewing progress payments.

In CSI-aligned practice:

Before the first application for payment, the contractor submits a schedule of values to the A/E for review.

Each line item represents a portion of the work with an assigned dollar amount.

Every application for payment is itemized against that schedule—showing the percentage complete and corresponding dollar amount for each item.

Thus, the contractor’s application is organized and itemized in accordance with the schedule of values, enabling the A/E and owner to evaluate progress in a consistent, transparent way. That matches Option C.

Why the others are incomplete or incorrect in this context:

A. The construction schedule – The construction schedule shows time and sequencing, not the cost breakdown used to itemize payment requests.

B. The subcontractor’s invoices – These may support the contractor’s internal accounting but do not define how the application for payment must be structured for the owner.

D. The percentage of completion – Percentage of completion is important, but it is applied to each line item in the schedule of values. The question asks what the application must be itemized in accordance with, which is the schedule of values, not just percentages.

CSI-aligned references (no URLs):

CSI Project Delivery Practice Guide – sections on construction phase payment procedures.

CSI CDT Body of Knowledge – payment applications and use of schedule of values.

Standard conditions of the contract as discussed in CSI materials – provisions on progress payments.