Importance of a Bills of Quantities

Contractor’s estimating risk are considerably lower.

The competition is much fairer as all contractors are tendering on the same basis.

Contractor’s overheads in tendering are reduced and therefore the whole building industry works more economically.

The measurement of quantities allows the total price to be analysed in great detail, thus providing cost feedback on the job, which in turn can be used statistically in cost planning of other works.

Bills of quantities provide the best means of controlling the cost of variations in the contract.

Although neither the Standard Form of Contract nor the Standard Method of Measurement dictates that quantities will be used for management purposes, they do in fact provide documents which are a great help on the site, particularly for ordering and the management of sub-contract work. It is likely that new methods of measurement, coupled with computer technology, will lead to their more extensive use for management purposes in the future.

The process of measuring quantities before tender is a useful test as to whether what has been drawn and specified can in fact be built. Having someone from a different profession examine the drawings and analyse construction in detail is undoubtedly helpful in identifying problems not apparent at first sight.

A high level of price certainty of a construction project since cost is known before the construction starts.

Allow to offer for a low tender price.

Adapts with design changes and assists the cost management process.

High quality of tender document.

Reduce risk of Contractors wielding the information in the BQ for their own purposes.

May avoid choosy work in comparison of tenders because the scope of works is a variety among the tenderers.

May avoid risks in terms of both time and cost because the projects are estimated based on overall floor area.

The valuation of progress payment would be easier with detail information as provided in BQ.

May avoid the tendency of contractor to form a conspire group and bid high for projects.

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