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Procurement of Works- Section VIII. Bill of Quantities

Section VIII. Bill of Quantities

Notes for Preparing a Bill of Quantities

Objectives

The objectives of the Bill of Quantities are

    (a) to provide sufficient information on the quantities of Works to be performed to enable bids to be prepared efficiently and accurately; and

    (b) when a contract has been entered into, to provide a priced Bill of Quantities for use in the periodic valuation of Works executed.

In order to attain these objectives, Works should be itemized in the Bill of Quantities in sufficient detail to distinguish between the different classes of Works, or between Works of the same nature carried out in different locations or in other circumstances which may give rise to different considerations of cost. Consistent with these requirements, the layout and content of the Bill of Quantities should be as simple and brief as possible.

Content

The Bill of Quantities should be divided generally into the following sections:

    (a) Preamble;
    (b) Work Items (grouped into parts);

    (c) Daywork Schedule; and

    (d) Summary.

Preamble

The Preamble should indicate the inclusiveness of the unit prices, and should state the methods of measurement that have been adopted in the preparation of the Bill of Quantities and that are to be used for the measurement of any part of the Works.

Rock

Where excavation, boring, or driving is included in the Works, a comprehensive definition of rock (always a contentious topic in contract administration), if not given in the Technical Specification, should be given in the Preamble, and this definition should be used for the purposes of measurement and payment.

Work Items

The items in the Bill of Quantities should be grouped into sections to distinguish between those parts of the Works that by nature, location, access, timing, or any other special characteristics may give rise to different methods of construction, phasing of the Works, or considerations of cost. General items common to all parts of the Works may be grouped as a separate section in the Bill of Quantities. When a family of Price Adjustment Formulae are used, they should relate to appropriate sections in the Bill of Quantities.

Quantities

Quantities should be computed net from the Drawings, unless directed otherwise in the Contract, and no allowance should be made for bulking, shrinkage, or waste. Quantities should be rounded up or down where appropriate, and spurious accuracy should be avoided.

Units of Measurement

The following units of measurement and abbreviations are recommended for use (unless other national units are mandatory in the country of the Employer).

Unit

Abbreviation

Unit

Abbreviation

cubic meter
hectare
hour
kilogram
lump sum
meter
metric ton (1,000 kg)

m3 or cu m
ha
h
kg
sum
m
t

millimeter
month
number
square meter
square millimeter
week

mm
mon
nr
m2 or sq m
mm2 or sq mm
wk

Ground and Excavation Levels

The commencing surface should be identified in the description of each item for work involving excavation, boring, or driving, for which the commencing surface is not also the original surface. The excavated surface should be identified in the description of each item for work involving excavation for which the excavated surface is not also the final surface. The depths of work should be measured from the commencing surface to the excavated surface, as defined.

Daywork Schedule

A Daywork Schedule should be included if the probability of unforeseen work, outside the items included in the Bill of Quantities, is relatively high. To facilitate checking by the Employer of the realism of rates quoted by the bidders, the Daywork Schedule should normally comprise:

    (a) a list of the various classes of labor, materials, and Contractor's Equipment for which basic Daywork rates or prices are to be inserted by the bidder, together with a statement of the conditions under which the Contractor will be paid for work executed on a Daywork basis; and

    (b) a percentage to be entered by the bidder against each basic Daywork Subtotal amount for labor, materials, and Plant representing the Contractor's profit, overheads, supervision, and other charges.

Provisional Quantities and Sums

Provision for quantity contingencies in any particular item or class of work with a high expectation of quantity overrun should be made by entering specific "Provisional Quantities" or "Provisional Items" in the Bill of Quantities, and not by increasing the quantities for that item or class of work beyond those of the work normally expected to be required. To the extent not covered above, a general provision for physical contingencies (quantity overruns) should be made by including a "Provisional Sum" in the Summary of the Bill of Quantities. Similarly, a contingency allowance for possible price increases should be provided as a "Provisional Sum" in the Summary of the Bill of Quantities. The inclusion of such Provisional Sums often facilitates budgetary approval by avoiding the need to request periodic supplementary approvals as the future need arises.

The estimated cost of specialized work to be carried out, or of special goods to be supplied, by a Nominated Subcontractor (reference Clause 59 or Part I) should be indicated in the relevant part of the Bill of Quantities as a particular Provisional Sum with an appropriate brief description. A separate bidding procedure is normally carried out by the Employer to select the specialists, who are then nominated as subcontractors to the main or prime contractor. To provide an element of competition among the main bidders (or prime contractors) in respect of any facilities, amenities, attendance, etc., to be provided by the successful bidder as prime contractor for the use and convenience of the specialist or nominated subcontractor, each related Provisional Sum should be following by an item in the Bill of Quantities inviting a percentage (to be quoted by the main bidder) payable on the actual expenditure from the Provisional Sum.

Summary

The Summary should contain a tabulation of the separate parts of the Bill of Quantities carried forward, with provisional sums for Daywork, for physical (quantity) contingencies, and for price contingencies (upward price adjustment) where applicable.

These Notes for Preparing a Bill of Quantities are intended only as information for the Employer or the person drafting the bidding documents. They should not be included in the final documents.

Sample

Bill of Quantities

A. Preamble

1. The Bill of Quantities shall be read in conjunction with the Instructions to Bidders, General and Special Conditions of Contract, Technical Specifications, and Drawings.

2. The quantities given in the Bill of Quantities are estimated and provisional, and are given to provide a common basis for bidding. The basis of payment will be the actual quantities of work ordered and carried out, as measured by the Contractor and verified by the Engineer and valued at the rates and prices bid in the priced Bill of Quantities, where applicable, and otherwise at such rates and prices as the Engineer may fix within the terms of the Contract.

3. The rates and prices bid in the priced Bill of Quantities shall, except insofar as it is otherwise provided under the Contract, include all Constructional Plant, labor, supervision, materials, erection, maintenance, insurance, profit, taxes, and duties, together with all general risks, liabilities, and obligations set out or implied in the Contract.

4. A rate or price shall be entered against each item in the priced Bill of Quantities, whether quantities are stated or not. The cost of Items against which the Contractor has failed to enter a rate or price shall be deemed to be covered by other rates and prices entered in the Bill of Quantities.

5. The whole cost of complying with the provisions of the Contract shall be included in the Items provided in the priced Bill of Quantities, and where no Items are provided, the cost shall be deemed to be distributed among the rates and prices entered for the related Items of Work.

6. General directions and descriptions of work and materials are not necessarily repeated nor summarized in the Bill of Quantities. References to the relevant sections of the Contract documentation shall be made before entering prices against each item in the priced Bill of Quantities.

7. Provisional Sums included and so designated in the Bill of Quantities shall be expended in whole or in part at the direction and discretion of the Engineer in accordance with Sub-Clause 52.4 and Clause 58 of Part I of the Conditions of Contract.

8. The method of measurement of completed work for payment shall be in accordance with [insert the name of a standard reference guide, or full details of the methods to be used].51

9. Errors will be corrected by the Employer for any arithmetic errors in computation or summation as follows:

    (a) where there is a discrepancy between amounts in figures and in words, the amount in words will govern; and

    (b) where there is a discrepancy between the unit rate and the total amount derived from the multiplication of the unit price and the quantity, the unit rate as quoted will govern, unless in the opinion of the Employer, there is an obviously gross misplacement of the decimal point in the unit price, in which event the total amount as quoted will govern and the unit rate will be corrected.

    10. Rock is defined as all materials that, in the opinion of the Engineer, require blasting, or the use of metal wedges and sledgehammers, or the use of compressed air drilling for their removal, and that cannot be extracted by ripping with a tractor of at least 150 brake hp with a single, rear-mounted, heavy-duty ripper.


    Sample

    Bill of Quantities

    B. Work Items

    1. The Bill of Quantities usually contains the following part Bills, which have been grouped according to the nature or timing of the work:

      Bill No. 1-General Items;
      Bill No. 2-Earthworks;
      Bill No. 3-Culverts and Bridges;
      Bill No. 4-etc., as required;
      Daywork Schedule; and
      Summary Bill of Quantities.

      2. Bidders shall price the Bill of Quantities in local currency only and shall indicate in the Appendix to Bid the percentage expected for payment in foreign currency or currencies.52


      Sample

      Bill of Quantities

      Bill No. 1: General Items

      Item no.

      Description

      Unit

      Quantity

      Rate

      Amount

      101

      Performance Bond/Guarantee

      sum

      item

      -

       

      102

      Insurance of the Works

      sum

      item

      -

       

      103

      Insurance of Contractor's Equipment

      sum

      item

      -

       

      104

      Third-Party Insurance

      sum

      item

      -

       

      105

      Allow for maintenance of Works for 12 months after completion

      month

      12

        

      106

      -etc.-

          

      112

      Provide and equip Engineer's offices

      nr

      2

        

      113

      Maintain Engineer's offices for 24 months, including services

      month

      24

        

      114

      -etc.-

          

      121

      Provide diversion road

      sum

      item

      -

       

      122

      Provide for traffic control and maintenance of diversion road

      month

      24

      -

       

      123

      -etc.-

          

      132

      Provide for cleaning up the Site on completion

      -etc.-

      sum

      item

      -

       
            
            
            
            
            
            
            
            

      Total for Bill No. 1
      (carried forward to Summary, p. )

       

       


      Sample

      Bill of Quantities

      Bill No. 2: Earthworks

      Item no.

      Description

      Unit

      Quantity

      Rate

      Amount

      201

      Excavate topsoil to maximum depth 25 cm and stockpile for reuse, maximum haul distance 1 km

      m3

      95,000

        

      202

      Excavate topsoil to maximum depth 25-50 cm, and dispose

      m3

      15,000

        

      203

      -etc.-

          

      206

      Excavate fill material from cuttings or approved borrow pits, haul up to 1 km, deposit, shape, and compact to fill

      m3

      258,000

        

      207

      Excavate rock in cuttings and dispose, any depth

      m3

      25,000

        

      208

      -etc.-

          
            
            
            
            
            
            
            
       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Total for Bill No. 2
      (carried forward to Summary, p. )

       

       


      Sample

      Bill of Quantities

      Bill No. 3: Culverts and Bridges

      Item no.

      Description

      Unit

      Quantity

      Rate

      Amount

      301

      Excavate in all materials other than rock from ground level to underside of foundations, maximum depth 5 m, and dispose

      m3

      18,500

        

      302

      Excavate in all materials other than rock, depth 5 m to 7.5 m

      m3

      2,500

        

      303

      Provisional Item
      As Item 302, depth 7.5 m to 10 m

      m3

      500

        

      304

      ¬タヤetc.¬タヤ

          

      311

      Concrete class B in abutments

      m3

      18,500

        

      312

      ¬タヤetc.¬タヤ

          

      318

      Mild steel reinforcement in abutments and piers up to 20 mm diameter

      t

      370

        

      319

      ¬タヤetc.¬タヤ

          
            
            
            
            
            
            
            
            
            
            
            

      Total for Bill No. 3
      (carried forward to Summary, p. )

       

       


        Sample

      Bill of Quantities

      C. Daywork Schedule53

      General

      1. Reference should be made to Sub-Clause 52.4 of Part I of the Conditions of Contract. Work shall not be executed on a daywork basis except by written order of the Engineer. Bidders shall enter basic rates for daywork items in the Schedules, which rates shall apply to any quantity of daywork ordered by the Engineer. Nominal quantities have been indicated against each item of daywork, and the extended total for Daywork shall be carried forward as a Provisional Sum to the Summary Total Bid Amount. Unless otherwise adjusted, payments for daywork shall be subject to price adjustment in accordance with the provisions in the Conditions of Contract.

      Daywork Labor

      2. In calculating payments due to the Contractor for the execution of daywork, the hours for labor will be reckoned from the time of arrival of the labor at the job site to execute the particular item of daywork to the time of return to the original place of departure, but excluding meal breaks and rest periods. Only the time of classes of labor directly doing work ordered by the Engineer and for which they are competent to perform will be measured. The time of gangers (charge hands) actually doing work with the gangs will also be measured but not the time of foremen or other supervisory personnel.

      3. The Contractor shall be entitled to payment in respect of the total time that labor is employed on daywork, calculated at the basic rates entered by him in the Schedule of Daywork Rates: 1. Labor, together with an additional percentage payment on basic rates representing the Contractor¬タルs profit, overheads, etc.,54 as described below:

        (a) The basic rates for labor shall cover all direct costs to the Contractor, including (but not limited to) the amount of wages paid to such labor, transportation time, overtime, subsistence allowances, and any sums paid to or on behalf of such labor for social benefits in accordance with [country of Borrower] law. The basic rates will be payable in local currency only.

        (b) The additional percentage payment to be quoted by the bidder and applied to costs incurred under (a) above shall be deemed to cover the Contractor¬タルs profit, overheads, superintendence, liabilities, and insurances and allowances to labor, timekeeping, and clerical and office work, the use of consumable stores, water, lighting, and power; the use and repair of stagings, scaffolding, workshops, and stores, portable power tools, manual plant, and tools; supervision by the Contractor¬タルs staff, foremen, and other supervisory personnel; and charges incidental to the foregoing. Payments under this item shall be made in the following currency proportions:

          (i) foreign: percent (to be stated by bidder).55

          (ii) local: percent (to be stated by bidder).

      Daywork Materials

      4. The Contractor shall be entitled to payment in respect of materials used for daywork (except for materials for which the cost is included in the percentage addition to labor costs as detailed heretofore), at the basic rates entered by him in the Schedule of Daywork Rates: 2. Materials, together with an additional percentage payment on the basic rates to cover overhead charges and profit, as follows:

        (a) the basic rates for materials shall be calculated on the basis of the invoiced price, freight, insurance, handling expenses, damage, losses, etc., and shall provide for delivery to store for stockpiling at the Site. The basic rates shall be stated in local currency, but payment will be made in the currency or currencies expended upon presentation of supporting documentation.

        (b) the additional percentage payment shall be quoted by the bidder and applied to the equivalent local currency payments made under (a) above. Payments under this item will be made in the following currency proportions:

          (i) foreign: percent (to be stated by the bidder);56

          (ii) local: percent (to be stated by the bidder);56

        (c) the cost of hauling materials for use on work ordered to be carried out as daywork from the store or stockpile on the Site to the place where it is to be used will be paid in accordance with the terms for Labor and Construction in this schedule.

      Daywork Contractor¬タルs Equipment

      5. The Contractor shall be entitled to payments in respect of Contractor¬タルs Equipment already on Site and employed on daywork at the basic rental rates entered by him in the Schedule of Daywork Rates: 3. Contractor¬タルs Equipment. Said rates shall be deemed to include due and complete allowance for depreciation, interest, indemnity, and insurance, repairs, maintenance, supplies, fuel, lubricants, and other consumables, and all overhead, profit, and administrative costs related to the use of such equipment.57 The cost of drivers, operators, and assistants will be paid for separately as described under the section on Daywork Labor.58

      6. In calculating the payment due to the Contractor for Contractor¬タルs Equipment employed on daywork, only the actual number of working hours will be eligible for payment, except that where applicable and agreed with the Engineer, the traveling time from the part of the Site where the Contractor¬タルs Equipment was located when ordered by the Engineer to be employed on daywork and the time for return journey thereto shall be included for payment.

      7. The basic rental rates for Contractor¬タルs Equipment employed on daywork shall be stated in local currency, but payments to the Contractor will be made in currency proportions, as follows:

        (a) foreign: percent (to be stated by the bidder).59

        (b) local: percent (to be stated by the bidder).59


      Sample

      Bill of Quantities

      Schedule of Daywork Rates: 1. Labor

      Item no.

      Description

      Unit

      Nominal quantity

      Rate

      Extended amount

      D100

      Ganger

      hour

      500

        

      D101

      Laborer

      hour

      5,000

        

      D102

      Bricklayer

      hour

      500

        

      D103

      Mason

      hour

      500

        

      D104

      Carpenter

      hour

      500

        

      D105

      Steelwork Erector

      hour

      500

        

      D106

      ¬タヤetc.¬タヤ

      hour

         

      D113

      Driver for vehicle up to 10 tons

      hour

      1,000

        

      D114

      Operator for excavator, dragline, shovel, or crane

      hour

      500

        

      D115

      Operator for tractor with dozer blade or ripper

      hour

      500

        

      D116

      ¬タヤetc.¬タヤ

      hour

         
            
            
            
            
            
            
            
            
       

      Subtotal

       

      D122

      Allow percenta of Subtotal for Contractor¬タルs overhead, profit, etc., in accordance with paragraph 3 (b) above.

        
            
       

      Total for Daywork: Labor
      (carried forward to Daywork Summary, p. )

       

       

       

      a. To be entered by the bidder.

       


      Sample

      Bill of Quantities

      Schedule of Daywork Rates: 2. Materials

      Item no.

      Description

      Unit

      Nominal quantity

      Rate

      Extended amount

      D201

      Cement, ordinary Portland, or equivalent in bags

      t

      200

        

      D202

      Mild steel reinforcing bar up to 16 mm diameter to BS 4449 or equivalent

      t

      100

        

      D203

      Fine aggregate for concrete as specified in Clause

      m3

      1,000

        

      D204

      ¬タヤetc.¬タヤ

          

      D222

      Gelignite (Nobel Special Gelatine 60%, or equivalent) including caps, fuse, wire, and requisite accessories

      t

      10

        
            
            
            
            
            
            
            
            
       

      Subtotal

       

      D122

      Allow percenta of Subtotal for Contractor¬タルs overhead, profit, etc., in accordance with paragraph 3 (b) above.

        
            
       

      Total for Daywork: Materials
      (carried forward to Daywork Summary, p. )

       

      a. To be entered by the bidder.
       


      Sample

      Bill of Quantities

      Schedule of Daywork Rates: 3. Contractor¬タルs Equipment

      Item no.

      Description

      Nominal quantity (hours)

      Basic hourly rental rate

      Extended amount

      D301

      Excavator, face shovel, or dragline:

       

       

       

      .1

      Up to and including 1 m3

      500

        

      .2

      Over 1 m3 to 2 m3

      400

        

      .3

      Over 2 m3

      100

        

      D302

      Tractor, including bull or angle dozer:

         

      .1

      Up to and including 150 kW

      500

        

      .2

      Over 150 kW to 200 kW

      400

        

      .3

      Over 200 kW to 250 kW

      200

        

      D303

      Tractor with ripper:

         

      .1

      Up to and including 200 kW

      400

        

      .2

      Over 200 kW to 250 kW

      200

        

      D304

      ¬タヤetc.¬タヤ

         
           
           
           
           
           
           
           
           
           
           
           

      Total for Daywork: Contractor¬タルs Equipment
      (carried forward to Daywork Summary, p. )

       

       


      Sample

      Bill of Quantities

      Daywork Summary

       

      Amounta
      ( )

      % Foreign

      1. Total for Daywork: Labor

        

      2. Total for Daywork: Materials

        

      3. Total for Daywork: Contractor¬タルs Equipment

        

      Total for Daywork (Provisional Sum)
      (carried forward to Bid Summary, p. )

       

       

       

      a. The Employer should insert local currency unit.

       


      Sample

      Bill of Quantities

      Summary of Specified Provisional Sums

      Bill no.

      Item no.

      Description

      Amount

      1

         
          
          

      2

      2.8

      Supply and install equipment in pumping station

      1,250,000

          
          

      3

         
          
          

      4

      4.32

      Provide for ventilation system in subway tunnel

      3,500,000

          
          

      etc.

         
          
          

      Total for Specified Provisional Sums

      (carried forward to Grand Summary (B), p. )

      4,750,000


      Sample

      Bill of Quantities

      Grand Summary

      Contract Name:

      Contract No.:

      General Summary

      Page

      Amount

      Bill No. 1: Preliminary Items

        

      Bill No. 2: Earthworks

        

      Bill No. 3: Drainage Structures

        

      ¬タヤetc.¬タヤ

        

      Total for Daywork (Provisional Sum)

        

      Subtotal of Bills

      (A)

       

      Specified Provisional Sums included in subtotal of bills

      (B)

      4,750,000b

      Total of Bills Less Specified Provisional Sums (A - B)

      (C)

       

      Add Provisional Suma for Contingency Allowance

      (D)

      [sum]b

      Bid Price (A + D) (Carried forward to Form of Bid)

      (E)

       
         

      a. All Provisional Sums are to be expended in whole or in part at the direction and discretion of the Engineer in accordance with Sub-Clause 52.4 and Clause 58 of Part I of the Conditions of Contract.

      b. To be entered by the Employer.

         
       

      ___________________
      Footnotes:

      51. The method of measurement should be spelled out precisely in the Preamble to the Bill of Quantities, describing for example the allowances (if any) for timbering in excavation, etc. Many national standard reference guides have been prepared on the subject, and one such guide is the Standard Method of Measurement of the U.K. Institution of Civil Engineers.

      52. The example given illustrates one of the two alternative methods of setting up a Bill of Quantities, in which rates and prices are entered in local currency only, with bidders stating separately their proportionate requirements in different types and amounts of foreign currencies. The second method is where rates and prices are broken down for each item into local and foreign currency components. The first method is administratively more convenient and hence is more commonly used in Works contracts.

      53. (i) A "Daywork Schedule" is commonly found in contracts where the likely incidence of unforeseen work cannot be covered by definitive descriptions and approximate quantities in the Bill of Quantities. The preferred alternative is to value the additional work in accordance with Sub-Clauses 52.1 and 52.2 of Part I of the Conditions of Contract. A Daywork Schedule normally has the disadvantage of not being competitive among bidders, who may therefore load the rates assigned to some or all the items. If a Daywork Schedule is to be included at all in the bidding documents, it is preferable to include nominal quantities against the items most likely to be used, and to carry the sum of the extended amounts forward into the Bid Summary in order to make the basic Schedule of Daywork Rates competitive.

        (ii) The total amount assigned to such competitive daywork is normally 3¬タモ5 percent of the estimated base Contract Price and is regarded as a Provisional Sum for contingencies to be expended under the direction and at the discretion of the Engineer. A limitation on quantity should not apply, and the unit rate quoted should be invariable whatever quantities of work are ordered.

      54. This method of indicating profit and overheads separately facilitates the addition of further items of daywork, if needed, the basic costs of which can then be checked more easily. An alternative is to make Daywork rates all-inclusive of the Contractor¬タルs overhead and profit, etc., in which case this paragraph and the relevant Daywork Schedule should be modified accordingly.

      55. The bidder shall state the percentage in a common foreign currency equivalent required for payment and the exchange rates and official sources used.

      56. The bidder shall state the percentage in a single foreign currency equivalent and the exchange rates and official sources used.

      57. This is an example of wording to include overhead and profit, etc., in the daywork rates. A separate percentage addition could be used as for labor and materials.

      58. An alternative, sometimes adopted for administrative convenience, is to include the cost of drivers, operators, and assistants in the basic rates for Contractor¬タルs Equipment. The last sentence of paragraph 5 should then be modified accordingly.

      59. The bidder shall state the percentage in a single foreign currency equivalent and the exchange rates and official sources used.