What is BOQ?
BoQ full form Bill of Quantities. A bill of quantities is a document used in tendering in the construction industry in which materials, parts, and labour (and their costs) are itemized
Until the advent of activity schedules in the previous two decades, bills of quantities were probably the most used pricing/payment mechanism in construction contracts.
They are still used extensively in building contracts, whereas civil engineering contracts tender to favor target price contracts of one form or another.
The bill of quantities is often abbreviated to BoQ or ‘the bill.’ Bills of quantities were touched and are explained in more detail here.
A bill of quantities is a list of items taken from a standard method of measurement. Against each item, the total quantity is abstracted from the tender drawings (usually by the design organization).
The bill of quantities is rather like a shopping list, which the tenderer then completes by inserting the prices that will be charged against each item. Most of these items will be measured as either “rates” or “prices per unit.”
So we might have rates against meters of pipes, square meters of formwork, and cubic meters of concrete, but valves and pipe fittings would be measured as prices per unit against ‘number’ (nr).
The total of all the items is the tender price; this is the use of the BoQ as a pricing mechanism. During the course of construction, regular payments are made by measuring the actual quantities used on-site and multiplying them by the rate in the BoQ; this is their use as a payment mechanism.
In traditional contracts, such as ICE7 and JCT SBCO5, the bill of quantities is a pricing mechanism and a payment mechanism. It is used in NEC3 ECC option B in a similar way. Option D also uses bills of quantities, but here only as a pricing mechanism.
In JCT contracts, the bill of quantities is usually called the contract bill and is combined with the specification items relevant to each item in the BoQ.
The normal assumption of contracts using a bill of quantities is that it will be prepared by the design organization or a quantity surveyor and issued in the same format to all companies that are tendering.
The major advantages of a bill of quantities are consistency and a straightforward process for checking and comparing tenders.
Another advantage for the industry as a whole is that the bill of quantities is only prepared once, rather than by each tenderer, who must, of course, price it. So there is no abortive work effort by unsuccessful tenderers.
The profession that concentrates on the billing and measurement function is the quantity surveyor, or ‘QS.’
Quantity surveyors are usually employed in the building industry to take-off quantities, whereas those civil engineers who still have the skill base generally take off their own quantities.
‘Taking off’ is the term used for abstracting quantities and inserting them against the relevant item in the bill of quantities. Tender documents, including the bill of quantities, are sent out to the contractors who will be bidding for the contract.
The contractor’s tendering department normally includes people called ‘estimators‘ who ‘price up the bill’ by inserting an appropriate rate (or price) against each of the items.
The bill of quantities can also be used by the design organization to estimate quite accurately the likely cost of the project.
This is done by inserting rates against the BoQ items. These rates may be obtained from previous similar con-tracts, published databases, or the designer’s own experience.
An experienced designer should be able to estimate the likely tender price within five or ten percent using these methods.
Tender comparison is much easier with contracts using a BoQ, because each BoQ contains the same items; only the tenderers’ prices differ, and these can be compared, examined in detail, and compared with prices for previous projects.
Finally, BoQs are often used in traditional contracts for determining the cost of changes (variations), where BoQ items are reasonably applicable to the varied work.
What is BoQ Meaning?
“Bill of Quantities”(BoQ) meaning a document called therein as a Bill of Quantities issued to tenderer by or on behalf from the Principal, stating estimated quantities of work to be performed. (as per AS214 Australian Standard, General conditions of contract)
BoQ Format Sheet
Advantages of a BoQ(Bill of Quantities).
- A BoQ is prepared a cost constantly. This detail to measured quantities of identified by specification and drawing n the tender documentation for construction works.
- A BoQ is issued to tenderers for them to prepare a price for carrying out the works. BoQ assists tender in the calculation of construction costs for their tender because all tendering contractors will price the same quantities. BoQ provides a fair and accurate system for tendering
- Before construction begins, the BoQ may notify the project budget along with also the modification of any elements of this design, which might be prohibitively expensive.
Additionally, it may help clarify quantities so the correct materials could be secured ahead of their works starting. - A BoQ is also as a reliable base for budget control and accurate cost reporting.
- BoQ enables the preparation of cash flow forecast and provide a basis for the valuation of variation, the preparation of interim payments, and the final account.
- BoQ helps create a low cost and low risk for tendering environment, which encourages the submission of competitive bids since the risk is better understood and defined.
What is BoM?
- BoM full form Bill of Material.
- When a product is designed, a key part of the design documentation is a bill of material.
- A bill of material or parts list, which is an itemized listing of the parts with quantities of each specified, is usually included in or with the initial detailed design drawings of an item and is updated as the design changes. This bill of material is a valuable source of material quantity information for the estimator.
- If it is not available, the estimator must be able to read and interpret drawings with sufficient skill to be able to envision and interpret the size, type, and quantity of material required based on measuring dimensions and interpreting notes from the drawing itself.
- Since there may be a number of different ways that materials can be applied to a design, it is always desirable for the designer or draftsman to specify the bill of materials rather than to rely on the estimator or the machinist to develop this information directly from the drawing.
- Material quantities are developed directly from a bill of material by adding scrap and waste allowances and by combining identical materials into a lot or quantity purchase.
Frequently Asked Questions about BoQ and BoM
What is a Bill of Quantities (BoQ), and why is it important in construction?
A BoQ is a detailed document that lists all materials, parts, and labor required for a construction project, along with their corresponding costs. It serves as a pricing and payment mechanism, aiding in accurate tendering, budget control, and cost reporting throughout the project lifecycle.
How is a BoQ prepared, and who typically handles its creation?
Quantity surveyors or the design organization usually prepare the BoQ. It involves abstracting quantities from tender drawings and inserting them against relevant items in a standardized format.
What are the advantages of using a BoQ in construction projects?
A BoQ ensures consistency, facilitates easy tender comparison, and minimizes abortive work effort by standardizing the pricing process. It also provides a fair and accurate system for tendering, aids in budget control, and serves as a reliable basis for cost reporting and valuation of variations.
How does a BoQ assist in budgeting and cost estimation before construction begins?
By detailing quantities and estimated costs upfront, a BoQ helps in forecasting project budgets and identifying potential design modifications that could impact costs. It also assists in securing the correct materials ahead of construction commencement.
What role does a BoQ play during the construction phase of a project?
During construction, a BoQ serves as a reference for measuring actual quantities used onsite and calculating payments to contractors based on the agreed rates. It helps in preparing cash flow forecasts, valuing variations, and facilitating interim payments and final account settlements.
What is a Bill of Material (BoM), and how does it differ from a BoQ?
A BoM is an itemized listing of parts with quantities specified, typically included in design documentation. It aids in material quantity estimation and is crucial for ensuring accurate fabrication and assembly of products. While a BoQ focuses on construction projects, a BoM is commonly used in manufacturing and engineering contexts.
Who is responsible for developing a Bill of Material, and why is it essential in product design?
Designers or draftsmen typically develop a BoM as part of the design documentation. It provides crucial information for estimating material quantities, ensuring consistency in product fabrication, and minimizing errors or omissions during manufacturing processes.
