The Bill of Quantity | Billing of Quantities

Bill of Quantity or Billing of Quantities 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.

Definition of the bill of quantity | billing of quantities

1. Bill of quantity is a list of various competents of a Building in a logical order.
2. The list give's a detailed descriptions of each competent and the quantity of it.
3. Quantitys are measured in meter's tone's and number as required from the drawings'

The Bill of Quantity | Billing of Quantities

The survival of any business is heavily depend on the success of commercial management. When it comes to commercial management in construction industry, Bill of Quantities (BOQ) is the term which brings attention of every construction professionals and stakeholders.

It is one of the communication tool which connects the parties (Client, consultant & contractor) of construction project. Keith defines, BOQ is a schedule which categories, details and quantifies the materials and other cost items to be used in construction project. It is important to know that, direct costs & indirect costs are to be considered for complete cost of the project which are covered in different parts of the BOQ.

Generally BOQ is in tabular form which contents description, unit, quantity, rate & amount in different columns.

Description column provides a brief explanation of what to be done. For example, in the first item, the 32 mm diameter CPVC pipes should be laid for cold water services in 20 bar operating pressure. Specification & drawings are other two important items to be analyzed in detail for clear understanding. Here the term engineer means the consultant for the project.

bill of quantity | billing of quantities

Function's of a Bill of Quantity

• Tendering.
• Valuetion's of interim certiftcate.
• Valuetion's of variation.
• Ordering of materials.
• Cost analyze for future use.
• Reference during the consruction quality and cost.
• Construction planing and monitoring.
• Sub contractor quotation.
• Final account.

The Importance of Bill of Quantity

BOQ shall be used in every phase (pre-contract & post-contract) of the project but need of BOQ differs based on different contract agreements & project. The major usages are listed below.

• It provides basic idea of the project by giving the quantities to tenderers.
• It defines the extent of the work. (But it should be identified in line with drawings & specification as well).
• It gives estimated or anticipated contract sum. (very important to client)
• It provides a basis for valuation of variation. (Variation is to be discussed in detail).

The major Parts of Bill of Quantity (Elements of The Billing of Quantities)

Parts of BOQ can be varied according to the project size as well the practices. Generally it has measured works, Preliminaries & Provisional sums.

Preliminaries

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

1. Charges for 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 item but without these expenses there will be no project.

Measured Work Sections

The measured work sections contain the quantities of various elements and trades of construction.

Provisional Sums

The term "provisional sum" is defined as a sum provided for work or for costs which cannot be entirely foreseens defined or detailed at the time the tender documents are issued.

Prime Cost Sums

The term "prime cost sum" is defind as a sum provided for work or services to be executed by a nominated sub-contractor, a statutory authority, or a public under-taking or for materials or goods to be obtained from a nominated supplies.


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