Role and Importance of the Bill of Quantities (BOQ) in Construction Contracts

Asad Ali

Thu, 24 Apr 2025

Introduction

In this short essay, we will discuss the role of the Bill of Quantities (BOQ) in construction contracts and how it ranks in terms of document priority.

Before we dive into specific points, let's look at clause 1.5 in the FIDIC form contract, which defines document priority.

Clause 1.5: Priority of Documents

Construction projects generate many documents, and prioritizing these helps reduce ambiguity. FIDIC contracts set this priority order to clarify which document should be referred to first in case of discrepancies.

The priority order includes:

1. Contract Agreement
2. Letter of Acceptance
3. Letter of Tender
4. Particular Conditions
5. General Conditions
6. Specifications
7. Drawings
8. Schedules and other documents

Notably, the Bill of Quantities is not listed explicitly in this priority, implying it is supplementary.

Key Point for Quantity Surveyors

Quantity surveyors often focus heavily on the BOQ, but FIDIC suggests relying on higher-priority documents, such as specifications and drawings, when assessing variations or claims.

Types of Contracts and BOQ Relevance

1. Traditional (Re-measure) Contracts:

• In traditional contracts (e.g., FIDIC Redbook), the BOQ provides approximate quantities, which are re-measured as the work progresses.
• If actual quantities differ from estimates (e.g., 50m³ estimated, 75m³ actual), the contractor is paid based on actual quantities.
• Risk: Quantity risk falls on the client; cost risk is with the contractor, who is compensated based on the final measured quantities.
• Unit Rate: Fixed and generally unaffected by quantity changes, except in cases of contractually defined variations.
1. Lump Sum Contracts:
• In lump sum contracts, the BOQ holds little significance, and the contractor’s payment is based on a fixed lump sum, regardless of actual quantities.
• Risk: Quantity risk lies with the contractor. If quantities increase, the contractor must still complete the work with no additional payment.
• Cost remains unaffected by quantity fluctuations unless specific variations are outlined.

Conclusion

To assess variations, quantity surveyors should focus less on the BOQ and more on primary documents like specifications, drawings, and particular conditions.