BILL OF QUANTITIES, Part 2

Before construction begins and even before signing a contract, the BoQ can form a reliable basis for the project budget, that could only have been a rough estimate without the BoQ. Furthermore it allows the client to modify any elements of the design that may be prohibitively expensive. The more detailed the work described and precisely measured in the BoQ, the closer the actual cost will be to the tender price/budget allocated for the project.

Generally, the priced bill of quantities also includes terms and conditions, and is an integral part of the contract with the contractor(s) and will even take precedent over the plans.

Clear delineation of specs and quantities early in the project will allow the time necessary to identify appropriate suppliers and secure a fair price without pressure, so the correct materials can be ordered in advance of the works starting.

Thus the BoQ can minimize risk and increase efficiencies, while reducing costs significantly in the tender and pre-construction phases. Further substantial savings during the financial administration of the project will accrue as the BoQ provides the basis for:

§ preparation of cash flow forecasts;

§ budget control and accurate cost reporting;

§ accurate measurement of the work completed to determine interim or milestone-based payments, in addition to preparation of the final account;

§ calculation of consultants' fees.

Last but not least, the Bill of Quantities forms the basis for the valuation of any changes to the original works, whether adding or removing elements. The more highly defined the BoQ, the less margin for error and the lower the chances of paying for unexpected extras—the black hole of all construction projects.