The priced bill of quantities meaning is a document that lists the items of work required to complete a construction project. It is an important tool used by building contractors and clients during the tendering process.
A priced bill of quantities is prepared by a cost consultant (typically a quantity surveyor). It assists tenderers in the calculation of construction costs for their tender, and as all tendering contractors will be pricing the same quantities, it provides a fair and accurate system for tendering.
Definition
A priced bill of quantities, also called a bill of materials or a list of prices, is an important document that describes the materials and labor needed to complete a construction project. It is prepared by a cost consultant (typically a quantity surveyor), and serves as the basis for pricing the work by different contractors.
The bill of quantities is prepared in a manner that allows all tendering contractors to price on the same basis, which helps ensure a fair and accurate system for tendering. This is usually done by preparing the bill of quantities using an agreed standard and methodology that everyone involved in the project agrees to adhere to.
It is essential that the bill of quantities is prepared in accordance with a defined standard and widely recognised methodology, as it helps avoid ambiguity omissions or misunderstandings which can result in disputes. It is particularly important on large projects, where the scope and quantity of work must be accurately stated to facilitate bidding on the contract.
When a design has been completed, the bill of quantities will contain a description of all of the items of work required to be carried out by the contractor. These will include the materials and labor needed for each item of work, as well as the time and money necessary to complete the job.
A contingency sum is another item that can be found within a bill of quantities, and it refers to costs that are unforeseen but likely to occur during the construction process. It is usually included to protect the client from potential loss or expense due to a change order that will be necessary for the construction project.
In order to prepare the bill of quantities, a cost consultant must be familiar with the specifications and drawings for the project. Having two separate engineering firms producing these documents can lead to inefficiency and unnecessary delays, so the best approach is to delegate both tasks to one firm.
Purpose
A priced bill of quantities is a document that itemizes labor, materials, and other items necessary for a construction project. It is typically prepared by a quantity surveyor or cost consultant and serves as the basis for pricing a construction project.
A bill of quantities (also known as a BQ or BOQ) is an important part of a construction project, as it helps contractors to price the work for which they are bidding. It also provides owners with an accurate estimate of the scope of work that will be completed.
The bill is developed to a standard methodology that is recognised by everyone involved in the construction project. This reduces the risk of ambiguities or misunderstandings.
It also allows tenderers to calculate construction costs using a consistent method, which makes it easier for the owner to compare contractor bids and select a successful company.
In preparing a bill of quantities, it is important to ensure that the design is complete and that a specification has been written. It is also necessary to develop a bill of quantities to a widely recognized methodology, which can prevent ambiguities or misunderstandings.
Once the design and specifications are complete, a bill of quantities can be prepared to include all of the work that will be performed during the construction project. It should include all of the materials and parts that will be used on the project, along with the amount of labor required to complete each element of the work.
This is often a time-consuming process and can be costly for a contractor. However, the result is a more accurate and affordable price for the owner.
A priced bill of quantities can be prepared during several stages of a construction project for all of the works or for a sample of the works. The price is generally determined during a bid process and includes all of the material and labor that will be needed to complete the work.
A priced bill of quantities can also be used on unit-price projects, where the owner estimates how many units of each element will be needed and then prices each unit. This can be helpful when a project is unclear about the exact size and may be difficult to estimate in advance.
Methods
A bill of quantities, or BoQ, is a document prepared by a cost consultant to itemize all the materials, labor and other items needed to build a project. The document enables contractors to bid for the work and determine its price. It is a key part of the tendering process and should be accurately priced.
A BoQ is typically prepared during the pre-construction stage of a project by a quantity surveyor or cost consultant. The document is based on the design team’s drawings and specifications and is set out in accordance with a standard method of measurement.
This type of bill of quantities lists all the elements of the construction work that needs to be done, including a description of the items as well as their measurements. It then breaks them into appropriate building elements (e.g. earthworks, masonry, plastering, and tiling).
It also lists the estimated contract sum and other details about the works. It is a useful tool for contractors and clients alike.
The bill of quantities will include all costs incurred, such as materials, labor, and equipment. It will also include overheads and the contractor’s profit.
There are many different ways that a Bill of Quantities can be prepared. These range from manual takeoffs to using construction estimating software.
Traditionally, material estimates were conducted by hand, using plans of a scheme and estimating how much of the materials–bricks, steel girder, pipework, etc.–would be needed to finish the job. This is a time-consuming process that can result in inaccurate measurements.
For larger projects, the owner may prefer a priced bill of quantities, which is a formal pricing document issued to the tenderer. The bidders then estimate their prices for each list item, and the total price of the project is calculated by multiplying each list item by its unit price.
A Bill of Quantities is a crucial tool for contractors, especially on large-scale projects where it allows owners to control the bidding process and ensure that they are getting an accurate price. It also takes the guesswork out of comparing bids and helps owners to select the best-priced contractor for the job.
Disputes
Bills of quantities can lead to disputes arising from ambiguities, misunderstandings or differences in interpretations of what has been priced. In order to avoid these, it is crucial that bills of quantities are prepared in accordance with a widely recognised methodology or standard, so that all competitive tenders are pricing their work on the same basis.
Typically, the measured quantities contained within the priced bill of quantities reflect the project-specific scope of the construction works that are to be carried out by the contractor. However, they may not be the true value of the permanent works if significant variations have occurred during construction.
In these circumstances, the billed rates can be re-measured after completion of the work, and payments made accordingly. This can reduce the likelihood of disputes arising in the future, and it also makes the process of assessing cost risks easier.
To prepare a bill of quantities, a cost consultant or quantity surveyor will identify elements of the construction work that can be measured and priced. These items can include materials and labour, as well as plant and equipment.
The price of these elements will be added together to form the overall priced bill of quantities, which will then be used by the contractor to tender for the project. It is most effective to prepare the bill of quantities in work sections that reflect likely sub-contract packages, as this will ensure accurate and competitive prices are obtained from sub-contractors.
It is also important to make sure that the priced bill of quantities are accurately compliant with the rest of the tender documentation, including drawings and specifications. This will help avoid any misunderstandings or ambiguities that might arise from different interpretations of the priced bill of quantities, as well as disputes arising out of a lack of compatibility between the priced bill of quantities and the rest of the tender documents. This can be caused by for example inclusion of irrelevant preliminary items, or by an arithmetical error.