A Bill of Quantities (BOQ) is a list of every item of work in a project, with a clear description, unit and quantity for each, prepared from the drawings and detailed estimate so that all contractors can quote rates on exactly the same basis. Once a bid is accepted, the priced BOQ becomes part of the contract and is used to measure and pay for the work.
This post explains the parts of a BOQ, how it moves through a tender in Nepal, a sample BOQ for a small building, and the errors that cause the most trouble on site.
Where the BOQ fits in a project
Parts of a bill of quantities
- Preamble: general notes at the start. It says what each rate includes (labour, materials, tools, transport, wastage, overheads and profit), how taxes are treated, and which specification applies.
- Method of measurement: how each item will be measured, for example concrete in m³ net of reinforcement volume, plaster in m² with stated deductions for openings.
- Item number and description: enough detail to price without guessing: material, grade or mix, thickness, location, and lead or lift where it matters. "RCC work" is not enough; "M20 RCC in columns up to floor two, including vibrating and curing, excluding formwork and steel" is.
- Unit: m, m², m³, kg or MT, number, or lump sum.
- Quantity: taken from the detailed estimate.
- Rate: filled by the bidder, usually in figures and in words.
- Amount: quantity × rate.
- Summary: totals of each bill (substructure, superstructure, finishing, sanitary, electrical), provisional sums, VAT and grand total.
Estimate vs BOQ
| Point | Detailed estimate | Bill of quantities |
|---|---|---|
| Prepared by | Client's engineer | Client's engineer, from the estimate |
| Rates | Engineer's rates from rate analysis | Blank at tender; bidder fills them |
| Shows measurement detail | Yes, length × breadth × height for each part | No, only total quantity per item |
| Purpose | Budget, approval, cost estimate for evaluation | Pricing basis for bids and contract |
| Shared with bidders | Rates normally kept confidential | Yes, part of bidding document |
How a BOQ is used in tenders in Nepal
Government offices, municipalities and other public bodies in Nepal buy works under the Public Procurement Act 2063 and its Regulations. In general terms the process runs like this:
- The office prepares the detailed estimate and gets it approved.
- It issues a bidding document, usually based on the standard bidding documents, with the BOQ, drawings, specifications and contract conditions. Many tenders are now run through the electronic e-GP system.
- Bidders fill unit rates in the BOQ and submit their bids.
- The evaluation committee checks each bid, corrects arithmetic errors as the bidding document allows, and compares the corrected totals of responsive bids.
- The selected contractor signs the contract. From then on, payment for each item is the measured quantity × the BOQ unit rate.
In an item rate contract, the BOQ quantity is only an estimate. If the work done is more or less, the contractor is paid for the actual measured quantity. Changes beyond what was planned are handled as variations within the limits set by the Act and Regulations. The exact rules on error correction, variations and price adjustment are written in the Act, the Regulations and each bidding document, so read the ones that apply to your contract.
Sample BOQ for a small building
Below is a short sample for a single storey RCC framed house. Quantities are worked out from the estimate; the rate and amount columns are what a bidder would fill.
| Item | Description | Unit | Qty | Rate (Rs) | Amount (Rs) |
|---|---|---|---|---|---|
| 1 | Site clearance including removal of bushes and debris | m² | 80.00 | ||
| 2 | Earthwork in excavation for foundation in ordinary soil up to 1.5 m depth, including disposal within 30 m | m³ | 38.40 | ||
| 3 | PCC 1:3:6 in foundation bed | m³ | 4.20 | ||
| 4 | M20 RCC in footings, columns, beams and slab, excluding formwork and steel | m³ | 22.50 | ||
| 5 | Fe500 reinforcement including cutting, bending and binding | kg | 2,250 | ||
| 6 | Formwork for RCC work including props and removal | m² | 165.00 | ||
| 7 | Brick masonry in cement mortar 1:6 in superstructure | m³ | 28.60 | ||
| 8 | 12.5 mm cement plaster 1:4 | m² | 310.00 | ||
| 9 | Floor tiles on cement mortar bed | m² | 55.00 | ||
| 10 | Two coats of emulsion paint over primer | m² | 300.00 | ||
| Total, VAT 13%, grand total | |||||
To build up quantities like these, the concrete calculator and the steel weight calculator save time. Our post on types of estimates and estimation methods shows how the quantities are measured.
Worked example: checking a priced BOQ
A bidder quotes item 2 at Rs 1,250.00 per m³ and writes the amount as Rs 51,325.00. These figures are for illustration only, not market rates.
- Correct amount = 38.40 × 1,250.00 = Rs 48,000.00
- Written amount = Rs 51,325.00, so the line is overstated by Rs 3,325.00.
Standard bidding documents generally keep the unit rate and correct the amount, so the bid total drops by Rs 3,325.00. Where the rate in figures and in words do not match, the words generally govern. Writing rates in words is easy to get wrong in long BOQs; the number to words converter helps.
VAT is then added to the corrected total. If the corrected sub-total is Rs 25,00,000, VAT at 13% is Rs 3,25,000 and the total is Rs 28,25,000.
Common errors in a BOQ
- Item missing: work shown on drawings but not in the BOQ, such as DPC, curing, or scaffolding for high walls. It later becomes a dispute or a variation.
- Double counting: formwork included in the RCC rate and also listed as a separate item.
- Unit mismatch: steel in MT in the BOQ but in kg in the estimate, or plaster in m² while the rate analysis is per 10 m².
- Vague descriptions: no grade, mix or thickness, so bidders price different things.
- Old specifications: a BOQ copied from an older project with outdated codes or materials.
- Arithmetic errors: rate × quantity not checked, especially after late changes to quantities.
- Unbalanced rates: a bidder quoting very high rates for early items and low rates for later ones. Evaluators should watch for this.
Frequently asked questions
What is the difference between a BOQ and an estimate?
The estimate shows how each quantity was measured and includes the engineer's rates. The BOQ lists only items, units and total quantities, with the rate column left for bidders.
Who prepares the BOQ?
The client's engineer or consultant prepares it from the approved drawings and detailed estimate. The contractor fills in the rates.
What is a provisional sum in a BOQ?
It is an amount set aside for work that cannot be fully defined at tender time, such as a specialist item. It is spent only as the engineer instructs.
Are BOQ rates quoted with or without VAT?
Usually without VAT, with VAT added on the total in the summary. Check the preamble and bidding document of your tender, as it states the rule.
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