Bills of quantities meaning

Construction contract pricing structures This Practice Note contrasts the pricing models most often used on construction projects, considering lump sum, remeasurement, prime cost and target cost contracts. Lump sum Also referred to as: Fixed price In brief: the contract sum is settled before any works begin. Features At the outset, employer and contractor agree the total amount payable for the project, prior to commencement. The price is not remeasured as the works proceed, so adequate tender information is essential for accurate pricing. Where the contractor is not responsible for design, pricing is typically based on drawings and: a bill of quantities prepared by a quantity surveyor in line with a published standard method of measurement, listing the work items, labour and materials needed to complete the works. During tendering, the contractor inserts rates against each item in the bills of quantities, and the product of the quantities...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Back end Contentious, disputes‑focussed legal services, for instance representing a party in litigation... Benchmarking A method for assessing whether service quality and pricing align with prevailing market levels (where they exist) without running a formal competition. It can also be applied to track improvement or evaluate performance... Best value The obligation on every local authority to arrange for continual improvement in how its functions are carried out, having regard to economy, efficiency and effectiveness (Local Government Act 1999, s 3). This entails considering costs, securing value for money, and ensuring services reflect community needs and the authority’s priorities. See Practice Note: Best value in public procurement... Bid bond Also called a tender bond (or guarantee). Used within the tender process to secure performance by bidding contractors, most commonly on international projects...

This Practice Note explains the roles performed by bills of quantities (‘BoQs’) under the JCT forms of contract, the matters parties ought to weigh up and the contents of BoQs, alongside some hands-on pointers. It concentrates on the 2024 editions of the JCT forms, while noting that comparable provisions appear in earlier versions. The JCT describes Contract Bills (eg in clause 1.1 and the Second Recital, JCT Standard Building Contract With Quantities 2024) as ‘the fully priced bills of quantities referred to in the Second Recital’. In broader terms, BoQs are schedules setting out units, quantities, rates and totals for items of work, materials, components and labour, itemised in line with an industry‑recognised standard method of measurement. Typically prepared by the Employer’s consultant, they are derived from the drawings and specifications issued at tender. They accompany the tender so that all contractors can price on an identical basis and ensure comparability of pricing across bidders. The distinction between the JCT notion of Contract Bills and BoQs is that JCT is...