Priced bill of quantities
A bill of quantities is a document prepared by the client's cost consultant that provides measured quantities of the items of work necessary to construct a development. These items of work are described by the drawings and specifications in the tender documentation. The quantities may be measured in number, length, area, volume, weight or time.
An unpriced bill of quantities (sometimes referred to as the tender pricing document) is issued to tenderers, who will then estimate their price for each item. This priced bill of quantities constitutes the tenderer's complete offer. It is the unpriced bill of quantities, but with the tenderer’s rates, costs and totals added.
The preparation, by the client’s consultants, of an unpriced bill of quantities assists tenderers in the calculation of construction costs for their tender, and, as it means all tendering contractors will be pricing the same quantities (rather than taking-off quantities from the drawings and specifications themselves), it provides a fair and accurate system for tendering. It also makes it possible to compare both the overall price and individual items directly with other tenderers’ offers, allowing a detailed assessment of which aspects of a tender may offer good or poor value. This information can assist with tender negotiations.
The priced bill of quantities will also:
- Assist with the agreement of the contract sum with the successful tenderer.
- Provide a schedule of rates assisting with the valuation of variations.
- Provide a basis for the valuation of interim payments.
- Provide a basis for the preparation of the final account.
It is very important that bills of quantities are prepared according to a standard, widely recognised methodology. This helps avoid any ambiguities or misunderstandings and so helps avoid disputes arising through different interpretations of what has been priced. In the UK, bills of quantities for general construction works will most commonly be prepared in accordance with the Standard Method of Measurement 7th Edition (SMM7) or the New Rules of Measurement, which became operative on 1 January 2013 and replaced SMM7 on 1st July 2013.
Bills of quantities are most useful to the contractor when they are prepared in work sections that reflect likely sub-contract packages. This makes it easier for the contractor to obtain prices from sub-contractors and is more likely to result in an accurate and competitive price.
[edit] Related articles on Designing Buildings Wiki
- Bill of quantities.
- Common arrangement of work sections.
- Common mistakes in bill of quantities.
- Comparison of SMM7 with NRM2.
- New Rules of Measurement.
- Schedule of rates.
- Schedule of work.
- Standard Method of Measurement.
- Tender documentation.
- Tender pricing document.
- Types of bill of quantities.
- Unpriced bill.
Featured articles and news
Electrotechnical excellence, now open for entries.
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
New project and cultural district described in detail.
The nature of EPCs, crticism and inaccuracies.
History, issues and redesign.
From waste recycling to energy performance the hierchy.
An introduction to WERCS and WEEE responsibilities
Dealing with 2 million tonnes of waste equipment a year.
Global BACS Market: analytics and optimisation
A BSRIA glance at building automation and control systems.
What it is and how to use it.
Types of insulating plaster by binder and insulant.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.