In construction, minor miscalculations can quickly escalate into costly overruns, delays, and disputes. That’s why understanding a BOQ in construction (and using it correctly) can make or break a project.
According to McKinsey, 98% of construction megaprojects experience cost overruns, averaging 30% above the original budget[?].
A Bill of Quantities (BOQ) is more than just an organized list. It’s a structured document that provides detailed descriptions and quantities of each material, component, and labor required for a project.
Whether you’re a contractor preparing a tender, a quantity surveyor ensuring transparency, or a PM tracking costs, BOQs help bring order to chaos and complexity. For most contractors, mastering the BOQ in construction is the foundation for accurate bidding and efficient execution.
In this guide, you’ll learn what is a BOQ in construction, who prepares it, the different types of BOQs, their benefits, details to include, and how tools like FirstBit ERP simplify the entire process.
What Is a BOQ in Construction
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Bill of Quantities (BOQ) is a standardized list of all materials, parts, and labor required for a specific construction project. This type of document includes detailed descriptions and measurements, enabling accurate cost estimation, tendering, and contract administration
[?].
Understanding a BOQ in construction ensures you create precise estimates and manage every phase of the project with confidence.
A BOQ acts as the bridge between design and construction, ensuring all parties (like clients, consultants, and contractors) fully comprehend the project scope and pricing on the same terms.
Miscommunication and poor project data account for 48% of all rework on construction jobsites[?].
Who Prepares a BOQ?
BOQs are generally put together by a quantity surveyor, architect, or engineer, depending on the size and complexity of the project. These professionals will typically:
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Review architectural and structural drawings. They evaluate all relevant dimensions, measurements, and quantities.
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Measure quantities of materials and work. This task ensures accurate and consistent pricing across the board.
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Describe items using standardized methods. This can include examples like SMM7 or NRM2.
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Assign itemized costs or rates. These itemizations support competitive and transparent tendering.
For larger projects, a dedicated cost consultancy may also prepare the BOQ to maintain neutrality and transparency.
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When to Use a BOQ
A BOQ is used at multiple stages of the construction lifecycle.
When to Use a BOQ:
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Before tendering. This approach provides a more uniform basis for contractors to submit comparable bids.
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During construction. A better strategy for progress measurement, interim payments, and evaluating variation orders.
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At closeout. Works best for final account settlement and cost benchmarking.
Using a BOQ early ensures that every bidder prices the exact scope of work, reducing disputes, pricing inconsistencies, or issues. Incorporating BOQ in construction practices early improves cost certainty and helps keep schedules on track.
Difference Between BOQ and BOM
Although similar in name, a BOQ and a BOM (Bill of Materials) serve slightly different purposes. This chart can help you better distinguish the differences:
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Aspect
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BOQ
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BOM
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Scope
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This will include materials, labor, and work descriptions.
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This solely focuses on materials and components.
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Usage
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Tendering, cost control, and contract administration.
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Mostly procurement and manufacturing.
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Preparer
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Quantity surveyors, architects, and engineers[?].
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Designers, engineers, and procurement teams.
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Details
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Detailed descriptions and measurements.
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Material names, codes, and quantities.
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In short, a BOQ tends to be broader, covering the entire scope of work, while a BOM is more focused on materials. The distinction is critical when explaining what is a BOQ in construction to clients or junior team members. This is why you can find a BOQ in many forms.
Pro Tip: A Bill of Materials (BOM) focuses only on the materials needed for a project, making it a valuable tool for forecasting procurement and cost control in a BOQ.
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Different Types of BOQ
Not all projects need the same type of BOQ. Depending on the project stage and detail level, several variations can be used.
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Firm BOQ. Fully priced and fixed, this is mainly used when drawings and specifications are complete. Contractors have their quote based on exact quantities, making it suitable for lump-sum contracts.
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Detailed BOQ. This document breaks down each element with exact quantities and rates. It works best for complex projects where accuracy is hypercritical.
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Approximate BOQ. This is more of an estimate based on preliminary designs or assumptions. It gives clients a cost prediction before final designs are available.
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Preliminary BOQ. Used at the earliest stages of a project to set budgets before all details are known. It usually includes rough allowances and assumptions.
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Elemental BOQ. This type organizes costs by building elements, such as foundations, walls, and roofs. It’s primarily useful for cost planning and benchmarking.
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Provisional BOQ. This BOQ includes provisional sums for any work that can’t be precisely quantified at the tender stage (like rock excavation).
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Trade BOQ. Organized by trade (for example, masonry or plumbing). This simplifies subcontracting and package management.
Despite the type of BOQ you choose, having one to begin with is the most important takeaway here. They are highly beneficial to your project progress.
Pro Tip: Choose your BOQ type based on the project’s maturity and objectives. Starting with a preliminary BOQ secures early budget alignment, while switching to a detailed BOQ later locks in accurate costs and minimizes tender disputes.
Benefits of BOQ
Using a BOQ offers significant benefits for contractors, clients, and consultants alike. When written well, a BOQ in construction improves pricing accuracy, streamlines workflows, and reduces financial risks.
Among other benefits are:
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Fair tendering. When all bidders price the same BOQ, comparisons are fairer and transparent. It levels the playing field by eliminating hidden costs and vague scopes.
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Efficient planning. Linking quantities to timelines allows for more efficient resource planning and scheduling. Contractors can sequence more work with a higher level of precision.
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Clarity and responsibility. BOQs define who is responsible, as well as what’s included and what’s not, reducing misunderstandings and avoiding disputes.
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Budget oversight. By itemizing every component, a BOQ identifies high-cost areas early on. This helps to improve budgeting, cost tracking, and financial control throughout the project timeline.
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Mitigating risk. A BOQ typically includes contingencies and provisional sums. This addition allows for more resilient project planning, reducing surprises and issues.
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What To Include in a BOQ?
A well-structured BOQ includes clear sections that will ensure uniform understanding for all parties involved. That’s why there are a variety of details that can be included in a BOQ.
What to Include in a BOQ:
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Tender form. For contractors to confirm their offer.
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Total sum of all sections. Consolidates the project’s total value.
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Preliminary items. Site establishment, temporary works, overheads.
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Items of work. Detailed descriptions and quantities for each activity.
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Cost of risk management. Contingencies and insurance provisions.
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Provisional amount. For unknown or variable work.
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Credits. For materials supplied by the client.
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Daywork rates. For work outside normal scope, usually labor + materials.
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Additional documents. Drawings, specifications, and appendices.
Each component of the BOQ should be measurable and based on standardized rules to avoid any confusion about what needs to be done.
Why Contractors Choose FirstBit to Simplify BOQ Preparation
Preparing BOQs manually takes time, skill, and consistency. Errors in quantities or formatting will lead to costly issues, disputes, and mistakes. That’s where
FirstBit ERP Software comes in.
FirstBit automates many aspects of BOQ creation, saving hours of manual work and vastly improving
project management practices. Whether you’re working on residential, commercial, or infrastructure jobs, FirstBit’s key features make quantity management faster and more reliable. For brands aiming to strengthen their BOQ in construction strategy, these tools provide a significant advantage.
Key Firstbit ERP features for BOQ management:
Project progress report with BOQ in FirstBit ERP
Automatic calculation by applying a markup in FirstBit ERP
Import BOQ from the file in FirstBit ERP
Gain complete control of your project costs, see real-time reports, and minimize risks with First Bit’s solutions for the construction industry in the UAE. You can
explore more features here.
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Conclusion
A BOQ in construction is more than a checklist; it’s a strategic document that drives fair competition, accurate pricing, and efficient delivery. By choosing the right BOQ (including the proper components and leveraging tools like
FirstBit ERP), contractors will seriously reduce risks, control costs, and win more profitable tenders.
If you’re ready to streamline your BOQ workflows and bring more precision to projects,
request a free demo.
FAQ
Why is a BOQ important in construction projects?
A BOQ is a document that provides a standardized basis for pricing and materials. This ensures all contractors work from the same scope and quantities. A BOQ works to create transparency during bidding, improving cost control throughout construction, and minimizing the risk of budget overruns or disputes.
Who prepares the Bill of Quantities?
Quantity surveyors, architects, or engineers typically prepare the Bill of Quantities (BOQ) using detailed drawings and project specifications. Their expertise is what ensures the document is accurate, comprehensive, and suitable for tendering, cost planning, and project control. It’s generally a requirement to have someone more experienced create the BOQ.
What information is included in a BOQ?
A BOQ generally includes tender forms, quantities of work, preliminary items, provisional sums, daywork rates, and supporting documents like drawings and specifications. These elements provide a total breakdown of the project’s scope, making pricing and planning more structured. It can also include any customized data that may be required for ensuring project clarity.
How is a BOQ used in tendering?
During tendering, the BOQ gives contractors a uniform pricing structure to follow as a guide. This allows clients to compare bids on equal footing, identify anomalies, and ensure all submissions are based on the same exact measurements and scope, resulting in fair and competitive pricing.
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Brianna Blaney
Contributing Author
Brianna Blaney is an experienced writer specializing in construction and project management, dedicated to delivering practical insights, industry trends, and solutions that help professionals build smarter and work more efficiently.