How to price a BOQ, step by step

1. Prepare the tender set

Start with document control. Record the BOQ filename and revision, then list the drawings, specifications, addenda and tender clarifications that apply. If the team prices different revisions, a clean rate build-up will not save the submission.

Run a first-pass check for missing units, empty quantities, repeated items, broken formulas and summary totals that do not tie to the detailed bills. Log anything that needs an instruction from the consultant.

2. Classify each item before choosing a rate

Decide how the line will be delivered. It may be self-performed work, a material purchase, a labour-only activity, a plant-dependent activity or a subcontract package. That decision controls which quotes and productivity assumptions belong in the rate.

Reusing an old rate without checking its basis is risky. The previous line may have used a different specification, supplier, location, access condition or quantity.

3. Build the direct cost

A transparent unit rate shows the resources behind it. The exact structure varies by company, but the direct cost commonly draws from:

• Materials and accessories required for one measured unit
• Labour based on the planned crew and realistic output
• Plant, tools, transport and handling tied to the activity
• Subcontract quotations where another party carries the work
• Waste or loss where it is relevant and supported

Keep the units consistent. A supplier may quote per bag, roll, piece or tonne while the BOQ is measured in square metres or cubic metres. Write down the conversion instead of typing the final result without a trail.

4. Normalize supplier and subcontractor quotes

Compare quotations on the same basis. Check brand and specification, unit, minimum order, delivery location, lead time, validity, payment terms and any excluded accessories or services. Tax treatment should follow your company's current advice and tender requirements.

Record the supplier, quote date and inclusion basis beside the rate. When the estimator returns later, the number should still make sense.

5. Apply project and commercial allowances

Direct cost is not the tender rate. The estimate also needs to account for the project setup, supervision, temporary works, guarantees, insurance, risk and other obligations that apply to this tender. Companies treat these items differently. Some price them in preliminaries, some distribute them, and some use a combination.

Separate cost, markup and margin in the review. They are not the same measure. Use the company's agreed method so the final percentage means what the decision-maker thinks it means.

6. Work one rate all the way through

For one representative item, trace every input from source to total. Start with the BOQ quantity and unit. Attach the current material or subcontract quote. Add the labour and plant assumptions, then apply the approved allowance method. The result should show both the cost per BOQ unit and the proposed tender rate per unit.

The downloadable BOQ Excel template includes a rate build-up sheet for this review. It deliberately leaves the rate inputs blank.

7. Reconcile and review the full submission

1. Confirm that every priced line belongs to the correct bill and section.
2. Check unpriced, zero-rate and unusually high or low lines.
3. Recalculate bill summaries and the final tender total.
4. Review assumptions, qualifications and exclusions against the priced scope.
5. Compare procurement packages with the rates carried in the estimate.
6. Complete an independent commercial review before submission.

A fast first pass is useful. The final estimate still needs human review, especially where the tender information is unclear or a rate carries significant risk.