Introduction

The bill of quantities (sometimes referred to as ‘BOQ’ or ‘BQ’) is a document prepared by the cost consultant (often a quantity surveyor) that provides project-specific measured quantities of the items of work identified by the drawings and specifications in the tender documentation. The quantities may be measured in number, length, area, volume, weight, or time.

Preparing a bill of quantities requires that the design is complete and a specification has been prepared. The bill of quantities is issued to tenderers for them to prepare a price for carrying out the works. The bill of quantities assists tenderers in the calculation of construction costs for their tender, and, as it means all tendering contractors will be pricing the same quantities (rather than taking off quantities from the drawings and specifications themselves), it also provides a fair and accurate system for tendering.

The contractor tenders against the bill of quantities, stating their price for each item. This priced bill of quantities constitutes the tenderer’s offer. As the offer is built up of prescribed items, it is possible to compare both the overall price and individual items directly with other tenderers’ offers, allowing a detailed assessment of which aspects of a tender may offer good or poor value. This information can assist with tender negotiations.

The Major Parts of BOQ

Parts of BOQ can be varied according to the project size as well as the practices. Generally, it has measured works, Preliminaries & Provisional sums. The contract sum would be the addition of these three items.

Preliminaries

In the construction industry, preliminaries are known as the indirect cost for the execution of the project but these are the costs which is very much vital for the construction activities. The reason for these costs mentioned separately is it is very difficult to distribute these costs amongst measured works. The examples for preliminaries are listed below.

1- Charges for a performance bond, advance payment guarantee & Workmen compensation

2- Maintenance of the site clean

3- Requirement of site office, site stores & staff accommodation.

4- Cost towards the project management staff (QS, Project Manager, Engineering professionals)

5- Charges for drawings & safety

From the above-mentioned examples, it can be understood these costs cannot be distributed to work items but without these expenses, there will be no project.

Measured works

It is the actual or estimated work that will be carried out to complete the project. The works have been measured in different units. They are liner meter, square meter, cubic meter, number, item &, etc. The value of measured works will be calculated by multiplication of quantities and rate.

Provisional sums

It is the sum that is allocated for the undersigned works at the tender time. It will be adjusted after the execution of the project.
In summary, BOQ is very much important for commercial management purposes. It should be understood by every construction professional to deliver a quality and expected product to the client. In other words to provide value for money.

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