What is BOQ?
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.”
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.