Last reviewed 30 Sept 2026 · 9 min read
Bill of Quantities (BOQ)
A Bill of Quantities is a document that lists the items of work to be carried out in a contract, each with a brief description, unit and quantity. In a tender, the contractor writes a rate and the amount against each item; the total forms the tender price. After award, the BOQ is the basis of the contract payment (in an item-rate contract) and for measuring variations.
Purposes
- Gives all bidders the same quantities to price, so the tenders are directly comparable.
- Forms the basis of the estimate (with rates from the schedule of rates), and later of the contract price.
- Used for interim payments (measured quantity × contract rate) and for valuing variations.
- Helps planning, procurement and cash-flow forecasting.
How a BOQ is prepared
FormulaSteps in preparing a BOQ
- Study the drawings, specifications and site conditions.
- Divide the work into sections in the order of construction (earthwork, foundation, superstructure, finishes, services) or by trades.
- Take off the quantities of each item from the drawings, using the standard methods of measurement (IS 1200 in India, or the CPWD specifications).
- Enter the item description in a standard form, with the specification reference, so that the rate covers all the work described.
- Abstract (squaring and summarising) the quantities item by item, converting the dimensions to the unit of measurement (cum, sqm, rm, kg, no.).
- Add provisional sums, prime cost (PC) sums and provisional quantities where the details are not known.
- Check the totals, the units and the descriptions, then issue the BOQ with the tender.
Format of a BOQ
| Item No. | Description of item | Unit | Quantity | Rate (₹) | Amount (₹) |
|---|---|---|---|---|---|
| 1 | Earthwork in excavation in foundation in ordinary soil up to 1.5 m depth | cum | |||
| 2 | Plain cement concrete 1:4:8 in foundation | cum | |||
| 3 | Reinforced cement concrete M25 in columns, beams and slabs | cum | |||
| 4 | Reinforcement steel Fe 500 | kg | |||
| 5 | Brickwork in superstructure, cement mortar 1:6 | cum |
The rate and amount columns are left blank for the bidder in a tender BOQ, and are filled by the estimator in an estimate.
Good practice
- One item = one clearly defined work (with the specification); avoid vague descriptions.
- Use the units and the mode of measurement of IS 1200 so that there is no dispute.
- Separate materials supplied by the client (with the recovery rate) from the contractor's.
- Group lump-sum items (mobilisation, testing, insurance) separately.
- Provisional sums for work whose scope is not yet defined; PC sums for specialist items purchased through nominated suppliers.
- Types of contract — item-rate (measured against the BOQ; the type most used), lump sum (a fixed price — the BOQ is for information), percentage rate (bidders quote a percentage above or below the estimate rates), and unit-price.
Abstract of estimated cost
The abstract of cost is a summary sheet that lists each main head or item with its quantity, rate and amount, and adds the percentage charges, giving the total estimated cost. It is the top sheet of the estimate submitted for administrative approval and technical sanction.
Items in the abstract
| Head | Explanation |
|---|---|
| Cost of the works items (from the BOQ) | Sum of quantity × rate for each item |
| Contingencies | An allowance for unforeseen expenditure — usually 3–5 % of the estimated cost (the actual percentage is set by the department's rules) |
| Work-charged establishment | Cost of the temporary staff (supervisors, chowkidars, mates) engaged on the work and paid from the work cost; about 1–2 % or as decided |
| Tools and plant (T & P) | Allowance for special tools and equipment: about 1 % where required |
| Quality control and testing | Percentage or lump sum for the tests of materials and works |
| Water supply and electric connection charges, sanitary and electrical installations | Often estimated separately, as a percentage of the building cost (e.g., electrical 7.5–15 %, plumbing 5–10 %, depending on the type) or in detail |
| Escalation and cost-index adjustments | Where the work runs over a long period |
| Centage charges (departmental/supervision charges) | Percentage for the department's administration and supervision (sometimes 5–15 % in older systems) |
| Taxes (GST) and labour cess | As per the rules (for example, the cess on construction workers' welfare is 1 % of the cost of construction) |
| Land, consultancy, and other charges | For a complete project estimate |
| Total (grand) cost | Rounded to an appropriate figure |
The percentages differ between organisations and state rules; the values above are indicative — always use the applicable departmental order.
Estimate approval process (typical)
- Preliminary estimate (for the administrative approval).
- Detailed estimate and abstract prepared from the drawings.
- Technical sanction by the competent engineer (the authority depends on the amount).
- Administrative approval by the government (allocating the funds).
- Tender, award and agreement; revised estimates if the cost is likely to exceed the sanctioned amount by more than the permitted limit (typically 5–10 %).