Wednesday, July 2, 2008

Bill of Quantities

This is post is to discuss the basic information regarding Bill of Quantities (BoQ).

Question: What is BoQ?

Answer:
It is a list of items of work which are briefly described to provide a measure of the extent of work in order to allow pricing of the work. The work included in the item is defined in detail by the rules in Method of Measurement.

Question: What is the function of BoQ?

Answer:
BoQ may serve as:-
a) A breakdown of the tendered price, with no contractual status, but providing information for the selection from tenderers;

b) A estimate measure of the work for the tendered price, to be used to arrive at a revised contract price once the actual quantities of work carried out are measured. This is the remeasure form of contract.

c) A schedule of rates as the contract basis for valuing variations in the work.

d) A basis for measure of the value of work competed for interim payments.

Question: When mistake (in Quantity or description) is found in the BoQ, can it be a variation order which give rise to cost implication to a contract?

Answer:
It depends on the types of contract. For construction contract without quantities - normally is called lump sum contract (based on drawing and specification where BoQ may just be used to derive the tender sum), mistake in the BoQ cannot give rise to variation order.

For construction contract with quantities, mistake in description within BoQ can give rise to variation order provided BoQ has higher precedence than the Contract Drawings and Specification within the Contract document. For substantial mistake in the quantity within the BoQ, it will be corrected and dealt with as an variation order.

Question: Must the BoQ be prepared according to Standard Method of Measurement (SMM)

Answer:
No. Standard Method of Measurement is just the guideline how construction works should be described and in what way they should be measured. It is recommended that the SMM to be followed in order to provide standard framework for measuring the construction works but it is not a must. In fact, most of the QS consulting firms now have varied the measurement rules for some items.

6 comments:

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