What it means
A bill of quantities, usually called a BoQ, is a structured schedule of construction work for pricing, describing items, units and quantities that contractors can rate in a tender. It is not merely a shopping list of materials, because measured work may include labour, plant, installation and other resources in the rate.
A quantity surveyor often prepares it from a sufficiently developed design, using measurement rules so that everyone describes work on a consistent basis. RICS New Rules of Measurement include NRM 2 for detailed measurement of building works, and the parties must identify the rules used, since a unit such as a square metre can have different inclusions depending on the measurement method and item description.
A typical line has an item number, description, unit, quantity, bidder's rate and extended amount, so 2,000 square metres of flooring priced at $85 per square metre extends to $170,000. That arithmetic is simple, but the description must explain substrate preparation, finish and other scope details where the measurement rules do not resolve them.
The BoQ gives bidders a shared pricing framework, so two bids are easier to compare when the same items and units are used. But the lowest total is not automatically the best value; review exclusions, qualifications, programme, contractor capability, payment terms and rates for items whose final quantity could change substantially.
The pricing schedule can also reveal unbalanced bids, since a contractor might put unusually high rates on early work to improve cash flow or on items expected to increase in quantity, and a low tender sum can mislead if a major quantity change will be valued at an inflated rate. The treatment of quantities depends on the contract.
In a remeasurement contract, final payment may use measured work actually completed and the applicable rates, so tender quantities may be estimates, whereas in a lump-sum contract the BoQ may play a different role in pricing, valuation or information. Do not tell an owner that every difference between the BoQ and completed quantity automatically changes the contract price.
An owner should read the BoQ together with its order of precedence and tender documents. If a drawing shows a door but the schedule omits it, the outcome depends on the contract and its risk allocation, so flag the mismatch before award rather than assume a later variation will be approved.
Provisional sums and contingencies need the same care: a provisional sum is an allowance for work not fully described or quantified at tender stage, not a firm fixed price for whatever work becomes necessary, so identify who controls its expenditure, what overhead and profit apply and how the final work will be valued. During construction, measured quantities and agreed rates may help value interim payments and variations, but a quantity surveyor or contract administrator needs evidence of work done and the relevant contract provision.
The original rate is not necessarily suitable for every changed item because method, timing, scale and conditions may differ, so use the contractual variation procedure and keep version control by recording the design issue, tender addenda and the final priced schedule accepted by the parties. The BoQ is most useful when it supports clear scope and disciplined contract administration; it cannot repair incomplete drawings by itself, so review high-risk quantities before award and track changes as work proceeds.
In practice
Real-world examples.
Example
A BoQ lists 2,000 square metres of tiling for a retail unit, with a description covering substrate preparation and finish. Each bidder enters a rate per square metre, and the extended amounts are added to form the tender sum.
Example
Three contractors price the same BoQ for a school extension. The tenderer with the lowest total has loaded high rates onto early items, so the owner's quantity surveyor compares item rates as well as totals before recommending an award.
Example
Extra works are valued using BoQ rates where the contract allows. When the owner asks for additional paving, the contract administrator checks whether the original rate suits the changed method and conditions, and agrees the valuation through the variation procedure.
Formula
Calculation
Item cost = Quantity x Rate, and BoQ total = sum of all item costs
Worked example. A small tender has two measured items.
- Flooring: 2,000 square metres x $85 per square metre = $170,000.
- Drainage: 500 metres x $120 per metre = $60,000.
- BoQ total = $170,000 + $60,000 = $230,000.
Under a remeasurement contract, if the flooring actually laid is 2,200 square metres, the flooring is revalued at 2,200 x $85 = $187,000, an increase of $17,000 on the tender figure, so the revised total is $247,000. Under a lump-sum contract the same difference may not change the price at all, which is why the contract type must be checked first.Case study
Seen in the real world.
This illustrative and entirely fictional case follows Horizon Warehousing, an invented client planning a new facility. Bids arrive with different assumptions about flooring and drainage. A quantity surveyor prepares a measured schedule and issues it with the same clarifications to all bidders.
The team compares rates as well as totals and flags a provisional sum before award. It does not assume that every later quantity change automatically entitles either party to more money. When the final flooring area proves 10% larger, the contract administrator values it under the remeasurement terms rather than by negotiation, and the extra cost is small enough to sit within the owner's contingency.
Watch out
Common mistakes.
- Treating the BoQ as complete even though drawings and specifications conflict.
- Comparing only tender totals while ignoring unbalanced item rates.
- Assuming all BoQ quantities are fixed or that every difference creates a variation.
Questions
People also ask.
What is a bill of quantities?
A measured schedule of construction work with descriptions, units and quantities for pricing.
Who prepares it?
Often a quantity surveyor, using the agreed measurement rules and design information.
Why use one?
It helps make bids comparable and can support valuations, subject to the contract.
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