BOQ stands for Bill of Quantities, which serves as a detailed list of various work items. It includes descriptions, quantities, and unit rates for each item. This document is presented in a tabular format, resembling a cost estimate summary, but with rate and amount columns left blank. The rates and amounts are filled in later to arrive at the estimated cost. Contractors use the BOQ to provide pricing for the project.
The components of a BOQ may vary depending on the project’s size and industry practices. Generally, it consists of Measured Works, Preliminaries, and Provisional Sums, which together determine the contract sum.
Preliminaries : In construction, preliminaries refer to indirect costs necessary for project execution. These costs are indispensable for project completion and cover various essential aspects such as:
Measured Works are the actual or estimated tasks required for project completion. They are quantified in different units like running meters, square meters, cubic meters, etc. The estimated amount of work is calculated by multiplying the quantities and rates.
Provisional Sums : Provisional sums represent an amount set aside for undefined work during the tender process. This amount is adjusted after the project’s execution.
Inexperience Can Lead to Misleading Estimates : When an estimator lacks experience, there is a risk of providing inaccurate estimates. This can result in miscalculations that may affect the project’s budget and timeline. It’s essential to have skilled professionals handling the estimation process.
Potential for Arithmetic Errors : BOQs must be prepared meticulously. Even minor arithmetic errors can have significant consequences, potentially leading to overestimation or underestimation of materials and costs. Therefore, attention to detail is paramount.
Suitability for Specific Procurement Systems : BOQs are best suited for traditional procurement systems. In situations where alternative procurement methods are used, such as design and build contracts, BOQs may not be the most suitable approach. Always consider the specific project requirements.
Lengthening Documentation Process : BOQ preparation can extend the documentation process, increasing the overall project cost. While it’s important to create accurate estimates, it’s also crucial to strike a balance between detailed documentation and project efficiency.
Risk of Neglecting Specifications : Tenderers, in their eagerness to win contracts, may focus solely on BOQ pricing. This can lead to overlooking critical aspects like workmanship specifications. Such oversight can result in underpricing and, consequently, the risk of subpar performance by contractors trying to cut corners to avoid financial losses.