AIQS Calls for Return of Bills of Quantities

If you can measure it, you can control it.

The Australian Institute of Quantity Surveyors (AIQS) is calling for the return of Bills of Quantities (BoQs)* as a way to improve efficiency and transparency and help reduce risk in the construction industry's tendering process.

"Incorporating a Bill of Quantities into 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.

Primarily, introducing a bill of quantities to the tendering market has the potential to significantly reduce the cost associated with tendering works.

"Typically, multiple builders (around 3 to 4) tender on the same project, each generating their own quantities. This process is replicated by various trades, with approximately 25 trades having 3 to 4 tenderers for each trade," says Mr 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."

BoQs can also help to:

• Improve accuracy: BoQs provide a more accurate estimate of the cost of a project than other methods, which can help to avoid cost overruns.
• Increase 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.
• Reduce 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.
• Control 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 to the last point, the reintroduction of BoQs represents a pivotal moment in the quest to control carbon emissions. By providing a solid starting point and accurate measurement framework, this methodology could empower businesses and industries to effectively manage their 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 Mr Warner.

Another advantage to utilising a bill of quantities is the valuable data metrics that can be leveraged 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,” says Mr Warner.

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 Mr Warner.

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