What is BOQ ? Format & Advantage of BOQ.
What is BOQ?
In construction industry, Bill of quantities or commonly known as BOQ is a document that is to be used in tendering or building contracts which lists all the materials, quantities of work, and labour.
It includes detailed description of each and every construction activity and the terms and conditions of the construction or repair which enables a contractor to estimate the amount of work and price for which he or she will be bidding. Subsequently, it is widely used for material scheduling; construction planning; cost analysis; and cost planning.
The total quantity of a particular item is taken out from the authorized drawings and is mentioned against each item’s description. The price unit is then filled by tenderer with the amount he will charge for that particular item. This amount may be measured either as rates or price per unit. Rates and amount may differ for running metre, sqm and cum of work.
The total sum of all the items is known as Tender Price. This is how a BOQ is used. During construction, actual quantities are measured and are compared with the quantities in the BOQ and are multiplied with the rates in Bill of quantities given by the tenderer and paid accordingly.
General Format of BOQ:
General format of BOQ includes following components:
- Item Description
- Rate per unit
- Total amount
Advantages of BOQ:
- While writing down description of each item to be done, we can anticipate many obstacles beforehand.
- BOQ tells us about the equipment, labours and materials that are mandatory for the construction which helps us in better planning.
- If materials are available whenever required, it can prove to be less time consuming and cost saving.