Bills of Quantities Contracts
Bills of Quantities (BOQ) contracts are contracts with detailed bills of quantities (firm or approximate) forming the definition of the scope of work.
BOQ contracts list all the quantities of work to be performed in a standard format and to a standard level of detail.
BOQ contracts are usually approximate, with the actual quantities being measured upon completion.
The final quantities will be agreed, and will form the basis upon which the contract price is assessed. In this case the rates are used not only to value variations, but also to establish the price to be paid for the work. If the quantities stated are fixed, only that amount will be paid for at the tendered rates, regardless of whether the quantities actually turn out to be correct or not and the tendered rates are then used solely to cost variations.
Payment and Cost Control
Payment under a bills of quantities contract may be on a monthly basis against measured quantities, or against a series of milestones. Milestone payments are preferred when the milestones can be clearly defined.