What is BOQ? – Purpose, Importance, Advantages, Disadvantages

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.

Purpose of BOQ

  • Standardizing the Tendering Process: It ensures that all contractors have the same information to base their pricing on.
  • Precise Project Valuation: It offers a clear and accurate method for valuing the project.
  • Analyzing Prices: Consultants use BOQ to evaluate prices for individual items and overall project costs.
  • Verification: Quantity surveyors rely on BOQ to ensure that contractors’ tenders comply with the provided information.

Importance of BOQ

  • Uniform Pricing: All contractors bid based on the same information, promoting fairness.
  • Project Overview: Provides a basic understanding of the project by offering quantities to tenderers.
  • Defining Scope: Describes the extent of work to be completed.
  • Estimating Contract Sum: Essential for the client to gauge project costs.
  • Valuation and Comparison: Forms the basis for valuation, tender comparison, and contract evaluation.

The Major Components of BOQ

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:

  • Charges for advance payment, performance bond, guarantee, and workmen compensation.
  • Site cleaning and maintenance.
  • Necessity of site office, stores, and staff accommodation.
  • Costs related to project management staff, including Quantity Surveyors and Project Managers.
  • Safety and drawing expenses.

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.


Process of BOQ Preparation

  • Taking off Quantities: Detailed drawings and specifications are thoroughly examined to identify the elements needed for BOQ preparation.
  • Description: A precise description of the work is presented to define and explain the task at hand.
  • Working Up: Measurements are recorded in a TDS sheet, noting dimensions like length, width, and depth. This culminates in calculating the total quantity of work.

Advantages of BOQ

  • Detailed Work Information: BOQ provides a comprehensive list of items and their quantities required for the project, offering a clear idea of the work scope.
  • Facilitates Evaluation and Comparison: Enables thorough evaluation of tenders and comparison of contractors based on each item, ensuring the best deal is secured.
  • Problem Identification: Helps in identifying potential problems that may impact the project in the future, allowing for proactive solutions.
  • Aids in Project Planning: Simplifies the planning process by listing items and their quantities, streamlining resource allocation.

Disadvantages of BOQ

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.