Professional Documents
Culture Documents
No. 20121133
Contracting and procurement
Group 3rd (project)(WX)
Report 1
Page 1 of 8
Table of contents :
Bill of Quantities……………………………………….3
The BOQ and invoices in lump sum contracts ….……..4
The BOQ and invoices in unit price contracts………….7
Conclusion………………………………………………8
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1- Bill of Quantities:
1.1- (BOQ) meaning a document that is issued to tenderer on behalf from the Principal,
stating estimated quantities of work to be performed.
1.2- what a typical invoice and BOQ should include
5 main components are to be considered which are as follows:
1-Item Description
2- Unit
3- Quantity
4- Rate per unit
5- Total Amount
1.3- However, there is a difference between the BOQ and the invoice.
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As shown in the above schedule, the main difference between the BOQ and the invoice is
recording the amount of work that is done whether is it in unit price contract invoice (the
quantities accomplished) or lump sum contract invoice ( the percentage of work that is
accomplished as per the schedule of values).
In such cases, the employer or engineer cannot argue that such a provision may be used to define
the lump-sum. Particularly when drawings and a specification exist that are accurate enough to
be used to construct the project.
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Typical notes regarding the lump sum items form a contract
2.2- Here in below are the schedule of values that should be included in lump sum contract for an
architecture design service that was agreed previously on its price as a lump sum contract that
included the whole client requirements, such as the type of building, the built up area, the foot
print, the plot location and authority regulations … etc.
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2.3 In the above invoice, the percent is not written clearly, the previous and the current payments
are not mentioned.
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3- The BOQ and invoices in unit price contracts:
3.1- The main difference between the quantities in lump sum BOQ and unit price
BOQ is that the quantities in the unit price BOQ are measurable, they only stick to
the unit price, and calculate the accomplished quantities.
Each item describes the client’s requirements and how it will be measured and the estimated
quantity, and two additional columns, one of them is the unit price which will be filled by the
contractor.
The final column is the item price and it is the multiplication of the unit price and the quantity,
the summation of this column will be the preliminary price.
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3.2- The invoices are provided to the client regularly, monthly, or each quarter… etc
It contains the previous, current and total quantities, as shown below.
The schedule above contains the previous and current quantities and in addition to that it
contains the percent of work, however, it is not fixed quantities.
Accordingly, there is no need for the column that shows the percentage of accomplished
quantities.
4- Conclusion:
BOQ and invoices are documents that save the right of the owner and contractor, they are
very sensitive and should be detailed and accurate.
Lump sum contracts have fixed quantities that will not be changed, which put the whole risk
on contractor.
However, the unit price contracts divide the risk between the contractor and the owner
because of the measurable quantities.
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