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Bill of Quantity – Everything you need to know about it.

photo5904293913089389638 - Bill of Quantity – Everything you need to know about it.

For any business to thrive, it is dependent on how well the commercial management is directed. So, when it concerns the construction industry’s commercial management, the Bill of Quantity is what defines the attributes and contribution of all stakeholders and professionals involved.

What is bill of quantity?

Often denoted as BOQ or BQ, the Bill of Quantities is a kind of prepared document from the cost consultant, usually a quantity surveyor, detailing the specifics of a construction project. In simpler terms, the BOQ provides clarification to precise quantities of the items of work identified by the components and blueprints contained in the tender documentation.

Doubtlessly, the measurement value for determining quantities differs. It could either be in numbers, area, length, time or weight. However, crafting a bill of quantity doesn’t just happen. It requires that the specification are fully prepared and the design duly completed. Nevertheless, there’s a need to understand the types of BOQ available as well as the required components to set it up. Let’s continue.

Types of Bill of Quantity

Interestingly, there are two available types of bill of quantity, namely; firm and approximate bill of quantity.

  • Firm Bill of Quantities

If you’re looking to get a detailed pricing for a fully prepared project, then the firm bill of quantities is what got need. This BOQ will enable you get a complete grasp of the everything you need to have about the project. From measurement, and description, to pricing. With this type of BOQ, you are sure to get an accurate financial record for the whatever project is involved as well as get the required control to help regulate your finances with ease. Even when there is a cause for alteration(s), this bill of quantity offers the major basis for dutifully assessing the reason behind the change(s).

  • Approximate Bill of Quantities

The second type of BOQ is the Approximate bill of quantities. Simply put, this type of BOQ is what a layman calls “rough sketch.” Usually, this type of BOQ is utilized to predetermined or re-determine whether the information provided is sufficient or not to finally formulate a “tender” firm bill of quantity.

Furthermore, this type of BOQ offers a complete description of the project in their appropriate quantity without having much effect on the pricing. Rather, the rates are provided by tenders which are influenced by quantified rates schedule, prompting that a re-measurement is done upon completing the project.

Considering the less cost and timeframe involved to prepare this bill, it might seem to be a more preferred and quite attractive option. But then, it is prone to more variations and need for re-measurement, hence promoting more expenses.

Functions of Bill of Quantity.

Now that we understand that bill of quantities is prepared to offer an accurate and fair system for tendering and accurate pricing for projects, let’s discuss some of its other functions.

  1. a) Dutifully analyzing the tendered price without including the status of the contract. Provides accurate info for proper selection form tenderers.
  2. b) Provides estimate for project measurement to determine a modified contract price after completed measurement.
  3. c) Scheduled rates for esteeming work variations.
  4. d) Determining value of work done for interim payments.

Bill of Quantities for House Renovation.

Interestingly, a common manifestation of measurement variation often arises between quantity surveying and bill of quantities. Hence, it is difficult for the construction dynamism to accurately predict every single factor affecting the size and scope of works.

However, if applicable probabilities are maintained, there is every tendency to reduce the dexterity of quantity calculations.

Meanwhile, an increment in the construction’s complexity will prompt an increase in the probability of estimation (including underestimation and underestimation) of the bill of quantity’s value and cost estimates.

However, the major issue is relatively general among the practices of utilizing share of investors and cost estimators as the standard for determining prepared offers.  Most times, this happens as a result of time limitations to properly access through the project specifications and analysis.

Explicit understanding of the entire documentation would greatly influence the identification of the potential loopholes in the pre-dimension, thereby offering a calculated offer that almost matches with the actual investment costs.

In the same vein, the level of verifying the deformities or specified quantities depends hugely on the investment nature. When it involves renovated structures, especially those with conventional facilities, both the cost estimator and person preparing the receipt should have definitive aptitude of the facility involved.

In this case, the offerer should always be considered as the precept of involved entity with respect to the investor.

That said, his pre-calculations made on the footing of the available documentation will only remain in the cycle of the study. In case of renovated buildings, the cost estimator corroborating these quantities to affirm accurate valuation must be able to broaden the spectrum of paraphernalia that determines his cost estimate. A major consideration would be inspection of sites by the estimator and an expert to help in the confirmation of documentation and ongoing validation on the site.

However, in the case whereby the contractor is unable to outline a specific offer,   the prerequisites of construction contract will be the determining element all through the course of investment. Meanwhile, properly adjustment to the form of settlements to the project degree probability might significantly affect the productiveness of work performances from the contractor’s outlook.

Components of Bill of Quantity

To compile a bill of quantity, contractors can integrate both the elementary or work packages by identifying the construction items responsible for the project processing, with measurements included.

Intricately, contractors can explore the benefits of a bill of quantity if accurate. work sections are integrated. This way, they can distribute sub-contact packages and receive prices which would enable them to craft an accurate pricing and measurement.  However, there are some elements that makes up the components of the bill of quantity to enable them function optimally. They include:

  • Calculation: This could either be areas, volumes, areas, or lengths or likes. This way, the contractor can accurately square the dimensions and enter matching results of the measurement while making estimates.
  • Abstracting the inscriptions and squared dimensions. The contractor transfers the squared proportions to the abstract, and orderly classify them.
  • Collecting and Presentation: This involves collecting items of work and orderly presenting them in a recognized bill. This client offers this bill of quantity with an empty rate and price column to the contractor who in turn includes his estimated rates and pricing when proposing the contract.

The truth is, even though the bill of quantity provides a rundown of work as indicated by the task, it doesn’t determine these things as it might result to perplexity between the information contained in a the bill and other specifications

In the event that there is an inconsistency between the BQ and other specifications records, confusion can set in and calculation mistakes is inevitable.

Generally speaking, the customers are liable for their own slip-ups or oversights, which can be distinguished as relevant occasions. Over time, they might be calculated as expenses or taken as a loss. Simultaneously, if during the delicate procedure the contractual worker sees notices a mistake, he is obliged to educate the customer regarding this, regardless of whether it is advantageous to them.

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