"Bill of Quantities"(BoQ) meaning a document called therein as a Bill of Quantities issued to tenderer by or on behalf from the Principal, stating estimated quantities of work to be performed. (as per AS214 Australian Standard, General conditions of contract)
A BoQ is prepared a cost constantly. This detail to measured quantities of identified by specification and drawing n the tender documentation for construction works.
A BoQ is issued to tenderers for them to prepare a price for carrying out the works. BoQ assists tender in the calculation of construction costs for their tender because all tendering contractors will price the same quantities. BoQ provides a fair and accurate system for tendering
Before construction begins, the BoQ may notify the project budget along with also the modification of any elements of this design, which might be prohibitively expensive. Additionally, it may help clarify quantities so the correct materials could be secured ahead of their works starting.
A BoQ is also as a reliable base for budget control and accurate cost reporting.
BoQ enables the preparation of cash flow forecast and provide a basis for the valuation of variation, the preparation of interim payments, and the final account.
BoQ helps create a low cost and low risk for tendering environment, which encourages the submission of competitive bids since the risk is better understood and defined.
When a product is designed, a key part of the design documentation is a bill of material.
A bill of material or parts list, which is an itemized listing of the parts with quantities of each specified, is usually included in or with the initial detailed design drawings of an item and is updated as the design changes. This bill of material is a valuable source of material quantity information for the estimator.
If it is not available, the estimator must be able to read and interpret drawings with sufficient skill to be able to envision and interpret the size, type, and quantity of material required based on measuring dimensions and interpreting notes from the drawing itself.
Since there may be a number of different ways that materials can be applied to a design, it is always desirable for the designer or draftsman to specify the bill of materials rather than to rely on the estimator or the machinist to develop this information directly from the drawing.
Material quantities are developed directly from a bill of material by adding scrap and waste allowances and by combining identical materials into a lot or quantity purchase.