Bill of quantities v Schedule of rates
Contents |
[edit] Introduction
This article explains the difference between a bill of quantities (BoQ) or a schedule of rates on construction projects. Both can be used to obtain prices from contractors and for valuing variations. The decision about whether to use a bill of quantities or a schedule of rates depends on the nature of the project as well as the chosen procurement route.
[edit] What is a bill of quantities?
A bill of quantities is a document prepared by the cost consultant (often a quantity surveyor) that provides project specific measured quantities of the items of work identified by the drawings and specifications in the tender documentation.
The bill of quantities is issued to tenderers for them to prepare a price for carrying out the works. The 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 also provides a fair and accurate system for tendering.
The contractor tenders against the bill of quantities, stating their price for each item. This priced bill of quantities constitutes the tenderer's offer.
Typically a bill of quantities will be appropriate on projects that have been designed in detail, and so the precise quantities required are known.
For more information see: Bill of quantities.
[edit] What is a schedule of rates?
A schedule of rates is a list in a contract setting out the staff, labour and plant hire rates that the contractor will use for pricing cost reimbursable instructed daywork. It does not contain any quantities for the specific work items and is typically used when the nature of work required is known but it cannot be quantified, or if continuity of programme cannot be determined.
On a much larger scale, a similar process might be used on a 'schedule of rates term contract', 'term contract' or 'measured term contract'. Tenderers quote unit rates against a document that is intended to cover all likely activities that might form part of the works. As the extent of the work is unknown, the unit rates include overheads and profit. General preliminaries such as scaffolding, temporary power, supervision and temporary accommodation will also have rates. On projects longer than around 18 months there might be escalation provisions based on annual percentage increases.
For more information see: Schedule of rates.
[edit] Summary
In summary, a bill of quantities will typically be used when a detailed design has been prepared and precise quantities can be calculated, whereas a schedule of rates will be used when quantities cannot be determined.
[edit] Related articles on Designing Buildings
Featured articles and news
New Great British Energy partnership launched
Crown estate help to turbocharge energy independence.
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.
Comments
[edit] To make a comment about this article, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.