Cost Management Terminology​

The functionality of a bill of quantities (BoQ) is fundamental and broad and shall represent the information within the drawings and specifications of the Project.

Subject to the stakeholder end-use, the development and use of the BoQ may be within the bid or execution phase or other project phases.

For example, the ministry of transportation in any country may recommend constructing a new road or railway system to digest the traffic congestion in a particular zone(s).

Pre-tender:
The information within this stage may be limited to on-site data analysis. However, the transportation ministry needs to determine a budget based on the conceptual drawings and specifications in order to complete the formality and obtain the fund. Therefore, developing BoQ is essential to:
A. itemize the project element relevant to the available information
B. define the initial budget
C. request proposals from the tenderers.
D. provide a basis for the financial control of a project

Post-tender:
BoQ becomes an essential contract document, where the parties (like Employer & Contractor) may use the BoQ to provide a basis for:
A. anticipated items with detailed descriptions and quantities, which configure the project elements
B. valuation of the interim payment statement for the work executed.
C. determination of any variation or claims
D. scope omission

The Quantity take-off is the subsequent process succeeding in developing an anticipated or firm BoQ, where the estimator scrutinizes the drawings and specifications to itemize the BoQ.

The Quantity take-off is a measurement process divided into two separate stages:
A. material quantification and marked drawings of the BoQ items by:
– scrutinizing the drawings and specifications
– method of measurement formalized based on reputable standards such as; CIQS, RICS, MasterFormat and Uniformat.
– using developed programs for this service like PlanSwift, BIM, AutoCAD, etc.
B. quantifying labour hours and equipment list is another process that needs an established project program and construction method of statements.

The detail level of measurement varies and is subject to multiple factors such as;
A. level of scope definition
B. Project procurement model
C. type of the stakeholder
D. implementation phase (bid or execution phase or other project phases)

One of the primary reasons that the construction project is delayed and over budget is the inadequate quantity take-off process, which significantly affects the project behaviour and results in unnecessary consequences.

For clarity, contingency, management reserve, and indirect items, such as; managers, site office, administration staff, engineers, running costs, assets, etc., are to be calculated within the cost estimating process.

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