Bills of Quantities: nemesis or nirvana?

Traditional Lump Sum (TLS) methods have been the primary procurement method within Australia. Yet, their use is beginning to wane in states such as: Queensland, New South Wales and Victoria where Design and Construct, Construction Management and hybrids thereof have become the norm. Considering the demands of clients, the increasing propensity to use non‐traditional methods, the quality of drawings that are being produced, and the role of software applications such as Computer‐Aided Design in directly generating quantities, this paper seeks to examine the role Bills of Quantities (BoQs) serve and how effective they are as a pre‐contract and post‐contract tool.

Only limited empirical research has addressed the role and effectiveness of BoQs, particularly in Australia. With this in mind, the research adopted an exploratory approach to gain insights from industry practitioners about BoQs. A questionnaire survey was developed from the literature and used to solicit the opinions of practitioners about their role and effectiveness as a pre‐contract and post‐contract tool.

The distributed questionnaire survey resulted in 86 responses from industry practitioners – quantity surveyors, building contractors, and project managers. The findings fundamentally reveal that the use of Bill of Quantities prepared in accordance with the standard method of measurement is on the decline and only useful as a tool for post‐contract control.

The research has revealed that there is a need for industry to embrace alternative forms of measuring quantities in building projects. Abridged bills and builders' quantities are being increasingly demanded in Australia. Thus, it is suggested that this demand could drive the need for alternative forms of pricing in building projects and lead to the increasing use of non‐traditional methods of measurement.