The Australian Institute of Quantity Surveyors (AIQS), the peak voice for built environment cost professionals in Australia, has called for the return of bill of quantities (BoQs)* to improve efficiency and transparency, and help reduce risk in the construction industry’s tendering process.

“Implementing a bill of quantities before initiating the tender process can greatly enhance the evaluation of design documentation, effectively eliminating errors and ambiguities,” says Grant Warner, AIQS CEO.

“This approach ensures that a more comprehensive and well-defined set of documentation is provided to the market, resulting in smoother tendering procedures. Additionally, it establishes a more robust pre-tender estimate process resulting in a more streamlined process.”

In recent years, the use of BoQs has declined in favour of other methods of tendering, such as design-and-build contracts. However, industry experts argue that BoQs offer a number of advantages over other methods, including the potential to significantly reduce the cost associated with tendering works.

“Typically, multiple builders (around 3 to 4) bid on the same project, each generating their own quantities. This process is replicated by various trades, with approximately 25 trades having 3 to 4 bidders for each trade,” says Warner.

“Consequently, the quantity surveyor's time spent measuring the bill of quantities is duplicated 10 to 13 times across the market. By providing a bill of quantities to builders and trades, the hours required for measurement can be reduced by 60-80%, resulting in substantial cost savings during the tendering process.”

Key advantages of BoQs also include:

Improved accuracy: BoQs provide a more accurate estimate of the cost of a project than other methods, which can help to avoid cost overruns.

Increased transparency: BoQs make it easier for clients to compare bids from different contractors, which can help to ensure that they are getting the best possible price.

Reduced risk: BoQs can help to reduce the risk of financial losses for contractors, as they provide a clear understanding of the costs involved in a project.

Lower carbon emissions: By quantifying overall quantities, accurate data can be applied to calculate emissions. This enables targeted mitigation plans, transparency, and accountability, driving substantial reductions in environmental impact.

“As we navigate the challenges of climate change, let us remember that if we can measure it, we can control it – and that is precisely what bills of quantities offer in the fight against carbon emissions,” says Warner.

Utilising a BoQ can also help leverage the valuable data metrics on each project to ensure consistency and gain insightful information.

“During the tender phase, the ability to compare builders' prices at both a detailed level and an overall trade level enables the identification of any pricing discrepancies within a group. This allows for informed discussions during the tender period, facilitating the selection of the most suitable builder for the project,” adds Warner.

Additionally, design metrics can also be extracted from the BoQ, establishing a baseline for future designs and driving optimal outcomes. By collecting such data from multiple projects, a portfolio view of optimal design and cost metrics can be created, serving as a valuable resource for informing future projects.

“At a time when the market is still enduring ongoing volatility, any measures that can be implemented to bring increased efficiency and reduced risk should be welcomed,” concludes Warner.

Image: https://estimateone.com/insights/different-types-of-construction-tenders-in-australia/

*BoQs are a detailed trade-based measure of quantities in accordance with the current edition of the Australian and Standard Method of Measurement of Building Works for the purpose of tendering and contract administration.

Architecture & Design Team

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