How to read and price a bill of quantities
, 2 minute read, by Mashrur Corporation
The bill of quantities is where a drawing turns into money. It lists every item of work with a quantity and a unit, and the contractor writes a rate against each. Whoever understands the BOQ best usually controls the cost of the job.
How a BOQ is laid out
Each line has an item number, a description, a unit, a quantity, a rate and an amount. Items are grouped by trade: earthwork, concrete, reinforcement, brickwork, plaster, flooring, doors and windows, painting, plumbing and electrical.
Units in Bangladesh are mixed. Government and larger projects work in metric: cubic metres, square metres and kilograms. Much private work still uses cubic feet, square feet and running feet. Check the unit on every line before pricing it.
Read the description, not just the title
The description states what the rate must include. A concrete item may or may not include formwork, reinforcement, curing and lifting to upper floors. If the description says complete in all respects, the rate must cover everything needed to finish that item. Missing one inclusion on a large quantity can remove the margin from a project.
What goes into a rate
- Materials, including wastage. Steel offcuts, broken bricks and spilled mortar are real.
- Labour.
- Plant and equipment: mixer, vibrator, hoist, scaffolding, shuttering.
- Transport and lifting to the point of use.
- Site overheads: supervision, water, power, security.
- Tax and VAT deducted at source, where they apply.
- Profit.
Check the quantities
Before pricing, measure a few large items from the drawings and compare them with the BOQ. Reinforcement and concrete are worth the effort because small errors carry large values. In a remeasured contract an error is corrected by measurement. In a lump sum contract it is the contractor's risk.
Common ways to lose money on a BOQ
- Pricing from last year's material rates.
- Ignoring the cost of working at height or in a tight urban site.
- Leaving out curing, testing and making good.
- Assuming an item covers less than its description says.
- Forgetting the time value of retention money and slow payment.
A reference point
The Public Works Department publishes a schedule of rates that many estimators use as a benchmark for item descriptions and rate build-ups. Market prices move faster than any schedule, so treat it as a structure to check against, not as a price list.
This is general guidance. Standards, duties and procurement rules change, so confirm current requirements for your project before acting on it.