What is a bill of quantities?

It can be difficult for project owners to compare proposals from contractors on large, complicated projects. Because they must first ensure that the contractors are bidding on the same scope of work before comparing prices. A bill of quantities in construction allows owners to control the bidding process. By clearly stating the work and quantities for contractors to price before the project is put out to bid. It eliminates the guesswork involved in bidding and analyzing bids. 

What is a bill of quantities? 

A bill of quantities (BOQ or BQ) is a list of materials and services needed to complete a project that is typically used on larger construction projects. The list, which includes materials, labor, and quantities of each, is frequently prepared by the engineer or architect after the project design is completed. 

The BOQ is then distributed to contractors to provide project pricing. Because the materials and quantities are already specified, they can concentrate on pricing rather than takeoffs. The pricing is then returned to the owner for review and contractor selection. 

After deciding on a contractor, the bill of quantities can be used to invoice the project. The same form is frequently used, and calculating progress based on the amount of material on the job site and the work completed is simple. 

If the project design is incomplete or it is unclear what exact quantities are required, teams can use an approximate or notional bill of quantities. Pricing is estimated in this case based on approximate quantities and can be revised once the amounts are quantified. 

What does a bill of quantities serve? 

Construction bills of quantities enable quick and easy comparison of contractor proposals. Because everyone is quoting the same amount of work, pricing differences are obvious. This gives the owner confidence that the proposal includes all of the work depicted on the documents and that they are receiving the best possible price. 

A bill of quantities is also used to clearly define a project’s scope of work. There is no room for misinterpretation and there is less chance of mathematical errors because quantities and amounts are provided. This contributes to the accuracy of contractor pricing. 

It also assists project managers with cost control and forecasting. The owner can forecast the amount of work that will be completed in each billing cycle based on the project schedule and the breakdown provided on the BOQ. This allows them to plan for their cash flow requirements as the project progresses. 

How to prepare a bill of quantities

Begin preparing a bill of quantities by breaking the work down into quantifiable or measurable items. This division is frequently based on standard work breakdown structures, such as CSI codes. The breakdown is most effective when organized by subcontractor packages, making it easier for general contractors to bid the work. 

The work items are listed with a brief description, quantity, and unit of measurement. The contractor then prices the work listed on the bill of quantities based on the drawings and specifications provided. If an item is shown on the drawings but not included in the bill of quantities, the contractor should notify the owner. A updated bill of quantities may be required. 

The general contractor sends pricing back to the owner for review, where their proposal is contrasted to other bidders. 

Following the signing of a contract, the bill of quantities can be utilized to create payment service as the work progresses. The contractor records the quantities completed on the form each month and multiplies them by the price of each item to calculate the invoice amount. 

Although architects and engineers typically create a project’s bill of quantities, more businesses are using BIM software to start preparing their list of quantities. The list is easily created by the software, and it can be quickly revised if the model is updated. 

The bill of quantities contributes to an even playing field. 

When estimating a project in construction, using a bill of quantities enhances the precision of the proposals. It guarantees that all contractors are making a bid the same work. This simplifies the process for project owners to choose a contractor because they no longer have to compare the scope of work. 

The type can also be used as an advancement payment application. Allowing the owner to track project progress and anticipate future cash flow requirements. 

Contact us  

If you have any questions about the content of this guide, or for help with your project in general, please contact us by email.  We will be happy to assist. 

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