Quantifying and costing is particularly important when projects are put out to tender, and is formalized in a bill of quantities (BOQ) which enables contractors to quote on equal terms. Then, when the tender has been awarded, it is used together with the project schedule as a tracking tool for cost planning and cost control.
Whatever the scale of a construction project, quantifying and costing the materials, labor, and equipment required is a vital procedure that is pivotal for budgeting and cost control.
Quantifying and costing is particularly important when projects are put out to tender, and is formalized in a bill of quantities (BOQ) which enables contractors to quote on equal terms. Then, when the tender has been awarded, it is used together with the project schedule as a tracking tool for cost planning and cost control.
Ultimately, a BOQ coupled with an accurate cost estimation will help with accurate project planning and will contribute to a reduction in the time and costs of any construction project. It is also an excellent tool for evaluating and comparing different products required for projects.
New York Engineers that is leading the design team will handle the BOQ and provide cost estimation services.
Elements of a Bill of Quantities
Everything that is required to build or fabricate items for a project need to be included in the BOQ. It literally breaks down requirements item by item and provides quantities based on the agreed specifications. Costing and quoting (or more formally, tendering) can then be done on an equal basis.
Generally, the project will be categorized into different areas of design and construction that require the services of different professionals and tradesmen. Typically these are:
Architectural
Structural
Mechanical
Electrical
Plumbing
Communications
Security
Fire protection systems
In each of these, the list of work and materials required will need to be specified in infinite detail.
Advantages of a BOQ in Construction Projects
A BOQ is part of the standard procedure for construction projects because of its many advantages. The BOQ:
Simplifies tenders because everybody is dealing with exactly the same items.
Is a fair process because a neutral party, the cost consultant or engineering firm, determines what is required and all contractors bid under equal conditions.
Speeds up the tender process because the basic requirements are spelled out for all competing contractors.
Improves accuracy because the quantities and measurements involved in the project are all determined beforehand and included in the BOQ.
Even though several contractors compete during tender processes, the lowest bid doesn’t always win and it can help to avoid lowballing, which is when contractors tender at prices that are unnecessarily low.
Some companies like to divide BOQ documents into a series of smaller documents so that, for example, plumbing and or electrical jobs are considered separately.
A Bill of Quantities may also be generated with building information modeling (BIM) software allowing the BOQ to be updated automatically if design changes or additions are made.
