Mini Project: Prepration of Bill of Quantity and Tender Document
Mini Project: Prepration of Bill of Quantity and Tender Document
Mini Project
On
PREPRATION OF BILL OF QUANTITY AND TENDER
DOCUMENT
Bachelor of Technology
In
Civil Engineering
SUBMITTED BY
SHUAIB ALAM
ROLL NO: - 1706800041
I feel very proud to say that due to keen knowledge of the faculty of the Civil
Department of the Meerut Institute of Engineering and technology. It was very easy
for me to learn a lot of knowledge regarding the “Preparation of bill of quantity and
tender document”.
I am greatly thankful to our guide for his kind support and guidance to complete my
Project. I have highly benefited from this Project and have gained a lot of knowledge
about the various problems of estimation of bill and the quantity of the materials used in
construction.
Finally, I would like to thanks all the faculty members and senior teachers who have
helped me and co-operated with me during my project work.
Preparation of bill of quantity is very important for any construction site and
any project. It helps us to estimate the quantity of the materials used in the
whole project. The materials are like:
CEMENT
SAND
COARSE AGGREGATES
BRICKS
ADMIXTURES, etc.
It also estimates the cost of these materials and also the types of workers
required for that work and also the number of workers.
The cost of the materials and the workers varies state-wise but a normal and
estimated rate was decided by C.P.W.D only in INDIA which was considered
during the calculation of any project cost.
The formal form of a bill of quantity was introduced by the United Kingdom
after the Industrial Resolution in the 19th Century.
They were mainly used by a master tradesman for paying their workmen and
claiming payments for building owners by submitting it as partisan Final
Account.
BQ is widely used in most of the Commonwealth countries used it for cost
estimating and more importantly, as part of a tender document for use in
soliciting competitive tenders from contractors.
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.
As the offer is built up of prescribed items, it is 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.
INTRODUCTION OF BILL PREPARATION:
The survival of any business heavily depends on the success of commercial management.
When it comes to commercial management in the construction industry, the Bill of
Quantities (BOQ) is the term that brings the attention of every construction professionals
and stakeholders.
It is one of the communication tools which connects the parties (Client, consultant &
contractor) of the construction project. Keith defines, BOQ is a schedule which
categories, details and quantifies the materials and other cost items to be used in the
construction project.
It is important to know that, direct costs & indirect costs are to be considered for the
complete cost of the project which is covered in different parts of the BOQ.
Generally, BOQ is in tabular form which contents description, unit, quantity, rate &
amount in different columns.
BOQ DOCUMENT
THE IMPORTANCE OF BOQ:
BOQ shall be used in every phase (pre-contract & post-contract) of the project but the
need for BOQ differs based on different contract agreements & project. The major usages
are listed below.
1. It provides a basic idea of the project by giving the quantities to tenderers.
2. It defines the extent of the work. (But it should be identified in line with drawings &
specification as well).
3. It gives an estimated or anticipated contract sum. (very important to the client).
4. It provides a basis for the valuation of variation. (Variation is to be discussed in
detail).
The major parts of BOQ:
Parts of BOQ can be varied according to the project size as well as the practices.
Generally, it has measured works, Preliminaries and Provisional sums. The contract sum
would be the addition of these three items .
STANDARDS OF BILLS:
Bills of quantities must be prepared according to a standard, widely recognized
methodology. This helps avoid any ambiguities or misunderstandings and so helps avoid
disputes arising through different interpretations of what has been priced.
PREPARING BILL OF QUANTITY:
Bills of quantities can be prepared elementally or in works packages, by a process of
'taking off' which involves identifying elements of construction works that can be
measured and priced. See Taking off for more information.
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.
BENEFITS OF BILL OF QUANTITY:
Bills of Quantities which we produce allow for obtaining a competitive tender price for
completing the building works, valuing the extent of building works complete for the
purpose of making payments to the contractor, valuing variations in the content or extent
of building works, or to support applications for tax or other financial incentives. Our
detailed measurement for the purpose of bills of quantities production is beneficial for a
number of reasons:
1. It saves considerable time and cost of several contractors measuring the same
design to calculate their bids for competition.
2. It provides a consistent basis for obtaining competitive tenders from contractors.
3. It provides an extensive and clear statement of the work to be executed.
4. It provides a very strong basis for budgetary control and accurate cost reporting of
the contract.
5. It allows, when BQ items are codified, reconciliation and any necessary transfers
and adjustments to be made to the cost plan.
6. When priced it provides data to support claims for grants; It provides one of the
best sources of Realtime cost data, which can be used for estimating the cost of
future building projects
Tender Notice
Tender Notice is issued in the prescribed form for calling tenders for the execution of
some works. The following information is furnished in the tender notice;
♦ Name of the authority or department inviting tenders.
♦ Name of work and its location.
♦ Estimated cost.
♦ Time of completion.
♦ Cost of tender form and conditions of the contract.
♦ Date, time and place of opening the tenders.
♦ Earnest money and security money.
♦ The validity of tender etc.
These are some of the major sections that you can expect to find in the tender documents
issued by most organizations. To know all the relevant information about the latest
national and international tenders, you should check the websites of some of the most
reputed tendering portals. Tender notice is advertised in all the leading newspapers and
also pasted on the notice board of the department inviting tenders.
TENDER NOTICE FORMAT
CONCLUSION
We can conclude that the use of bill and quantity in civil engineering is very important
and also, we learn about new things like tenders, preparation of the bill, cost estimations
etc. As the scope of understanding will be much more when practical work is done. As we
get more knowledge in such a situation where we have a great experience doing the
practical work. It provides sufficient information on the quantities of Works to be
performed to enable bids to be prepared efficiently and accurately; and when a contract
has been entered into. We also learn a priced Bill of Quantities for use in the periodic
valuation of works executed.