When building in Cyprus, whether it’s a residential or commercial project, accurate planning and cost control are crucial. One of the most effective tools to achieve this is the Bill of Quantities, or BoQ in shorthand. This is a document that itemises, describes and quantifies all the materials and labour required to complete a construction project. It is typically between 50 and 150 pages long and prepared by a professional Quantity Surveyor (Q.S). An example is provided at the end of this article.

In a nutshell, a BoQ helps to provide a clear picture of all the works to be done (classified under various headings), ensures accurate costing and facilitates easy comparison between the tenders of different construction companies that bid for the project. It also facilitates a smoother project initiation, construction and delivery. 

1. What is a Bill of Quantities?

In Cyprus, a Bill of Quantities is typically prepared by a Quantity Surveyor at the end of the design phase, once the architectural and engineering plans are completed. Professional Quantity Surveyors are members of professional bodies, such as the RICS (Royal Institute of Chartered Surveyors) and ETEK (The Cyprus Scientific and Technical Chamber).

The BoQ breaks down a project into hundreds of individual work items classified under 10-20 general headings -such as Earth Works, Concrete Works, Masonry Works, Flooring Works, Plumbing Works, Electrical Installations and so on- specifying the required quantities of each work item (measured in units such as cubic metres, square metres, kilograms, manhours, etc).

For example, a BoQ might state, among other, the following:

+ Earth Works

Excavation of entire plot at 1,5m depth: 400m³

Removal and disposal of excavated soil: 200m³

+ Concrete Works

C30/37 concrete for foundations: 300m³

B500C steel reinforcement for foundations: 16T

As mentioned, the document follows a standardised structure so that all Contractors bidding for the job are pricing exactly the same work items and the same quantities. This means that when comparing bids, you are comparing ''apples with apples''. In the absence of the detailed analysis that a BoQ provides, different Contractor bids are much less comparable.

2. Why it is a Necessity in the Cyprus Construction Sector

For small-scale projects (e.g. façade repairs for a small house), some Contractors may be willing to provide their own detailed breakdown of works to be done. However, for the vast majority of projects in the Cyprus construction sector, a BoQ is a necessity (especially for new construction and extensive renovation projects). Some of the benefits include:

+ Accurate Estimation of the Work and Materials Involved

As discussed, the BoQ breaks down the entire project into hundreds of individual items, classified under 10-20 headings. This means that the project has very clear, detailed and precise descriptions concerning different work items (e.g. m³ of excavation) and amount of materials to be used (e.g. Kg of steel reinforcement), providing transparency and predictability to both the project owner and the Contractor.

+ Getting Tenders from Construction Companies

The absence of a BoQ makes it particularly difficult to source tenders from construction companies. The preparation of a tender for a project without a BoQ is much more resource intensive for the Contractor; in other words, it takes much more time and effort to prepare a tender (they have to measure quantities from the drawings themselves), meaning that the cost of preparing a bid for such a project becomes so high that the majority of Contractors do not consider it worthwhile. Even if a project manages to source 1 or 2 tenders, this would be inadequate given that an owner usually prefers 3 to 5 tenders to ensure competitive pricing.

Hence, preparing a BoQ and inviting tenders, especially through an open competitive tendering procedure, such as that of Projects.cy eProcurement Platform, ensures an effective and impartial bidding process.

+ Better Pricing

In the absence of a detailed project works breakdown in the form of a BoQ, Contractors may charge higher prices as a premium to compensate for the uncertainty and lack of clarity concerning the works to be done. This is especially true for renovation projects were architectural and engineering plans usually lack the level of detail that is more standard in new-built projects.

+ Accurate Cost Estimation

The strongest benefit is cost predictability. With a BoQ, competing Contractors price the exact same list of items, allowing the client to compare ''apples with apples'' when reviewing tenders. It makes it easier to assess which offer is most competitive and advantageous and minimises the risk of unexpected cost overruns later.

+ Better Monitoring and Budget Control During Construction

Once construction begins, the BoQ serves as a tool for monitoring progress and justifying disbursements to the Contractor. Interim payment requests made by the Contractor must reference completed works and quantities stated in the BoQ. In simple terms, the BoQ serves as a checklist to monitor -at different stages of the project- what work has been done and what the corresponding payment should be.

+ Reduced Risk of Disputes

In Cyprus, it is often the case that disputes arise between the owner and the Contractor due to different interpretations or understanding concerning the works or materials. This is especially the case when the project does not involve detailed and precise specifications. As the BoQ provides precise definitions for each work item, less room for ambiguity is left. Moreover, if any change is needed after construction begins -say 50m³ more soil needs to be excavated- its cost can easily be calculated as the BoQ includes the cost per m³ for soil excavation.

Conclusion

Preparing a BoQ requires time (a Q.S needs to be employed several weeks in advance to produce the required BoQ on time) and involves a cost of a few thousand euros, depending on project size and characteristics. Some owners question this investment in time and money. It is, however, generally agreed that the numerous benefits of a BoQ, as discussed above, far outweigh its cost and make the whole construction process smoother and less troublesome.

Sample Bill of Quantities