Advantages of a bill of quantities

A bill of quantities (sometimes referred to as 'BoQ' or 'BQ') is a document prepared by a cost

consultant (often a quantity surveyor) that provides project-specific measured quantities of the items
identified by drawings and specifications in the tender documentation for construction works.

A bill of quantities is issued to tenderers for them to prepare a price for carrying out the works. The bill of
quantities assists tenderers in the calculation of construction costs for their tender, and, as it means
all tendering contractors will be pricing the same quantities (rather than taking off quantities from
the drawings and specifications themselves), it also provides a fair and accurate system for tendering.

At some stage in a project’s procurement process, regardless of the type of contract being used,
the works will need to be quantified in order to obtain prices or to value the extent of
the work and variations to issue payments. A good and accurate BoQ makes this process much easier
and more transparent, and removes the reliance on guesswork. Before construction begins, the BoQ can
inform the project budget and the modification of any elements of the design that may be prohibitively
expensive. It can also help clarify quantities which means the correct materials can be procured in
advance of the works starting.

A BoQ can provide a clear and extensive statement of the work that is to be completed, as well as a
reliable base for budget control and accurate cost reporting. It enables the preparation of cash flow
forecasts and provides a basis for the valuation of variations, the preparation of interim payments, and
the final account.

For tenderers, it helps create a low-risk and low-cost tendering environment, which encourages the
submission of competitive bids since the risk is better understood and defined.

How important is the Bill of Quantities is in the

construction business?
The Bill of Quantities is a document compiled for construction projects in which all
elements of material labor and plant needed to construct are itemized in detail,
quantified and priced according to the Standard Systems of Measurement. Traditionally,
it splits the work trades into groups known as Bills (e.g Earthworks, Masonry,
Plastering, Tiling etc). The Bill of Quantities has the following uses:

1. Cost planning in the pre contract phase of the project

2. Tendering - An unpriced Bill of Quantities is sent out to bidders to price the work. The
bidder with the lowest price normally wins (also based on other qualification criteria)
3. Interim valuation - The Bill of quantities will be the document that the
client's/employer's Quantity Surveyor or Project Engineer will use to value the progress
of work on site.

An offer and invitation to offer are two different terms, which must not be
confused with one another. An offer is a proposal while an invitation to
offer (treat) is inviting someone to make a proposal. In an offer, there is an
intention to enter into a contract, of the party, making it and thus it is certain.
On the other hand, an invitation to offer is an act which leads to the offer,
which is made with an aim of inducing or negotiating the terms.

Definition of Offer

An offer is an expression of a person showing his willingness to another

person to do or not to do something, to obtain his consent on such expression.
The acceptance of the offer by such person may result in a valid contract. An
offer must be definite, certain and complete in all respects. It must be
communicated to the party to whom it is made. The offer is legally binding on
the parties. There are following types of offer:

 General offer: The type of offer which is made to the public at large.
 Specific offer: The type of offer made to a particular person.
 Cross offer: When the parties to the contract accept each other’s offer in
ignorance of the original offer, it is known as the cross offer.
 Counter offer: This is an another type of offer in which the offeree does
not accept the original offer, but after modifying the terms and
conditions accept it, it is termed as a counter offer.
 Standing offer: An offer which is made to public as a whole as well as it
remains open for a specific period for acceptance it is known as
Standing offer.

Example:

 A tells to B,”I want to sell my motorcycle to you at Rs. 30,000, Will you
purchase it?”
 X says to Y,”I want to purchase your car for Rs. 2,00,000, Will you sell it
to me?”

Definition of Invitation to offer (treat)

An Invitation to Offer is an act before an offer, in which one person induces
another person to make an offer to him, it is known as invitation to offer.
When appropriately responded by the other party, an invitation to offer results
in an offer. It is made to the general public with intent to receive offers and
negotiate the terms on which the contract is created.

The invitation to offer is made to inform the public, the terms and conditions
on which a person is interested in entering into a contract with the other
party. Although the former party is not an offeror as he is not making an offer
instead, he is stimulating people to offer him. Therefore, the acceptance does
not amount to a contract, but an offer. When the former party accepts, the
offer made by the other parties, it becomes a contract, which is binding on the
parties.

Example:

 Menu card of a restaurant showing the prices of food items.

 Railway timetable on which the train timings and fares are shown.
 Government Tender
 A Company invites application from public to subscribe for its shares.
 Recruitment advertisement inviting application.

Tender processes for construction contracts


1 Introduction
 2 Open tendering
 3 Selective tendering
 4 Negotiated tendering
 5 Serial tendering
 6 Framework tendering
 7 Single-stage and two-stage tendering
 8 Public procurement
 9 Find out mo
Introduction

A tender is a submission made by a prospective supplier in response to an invitation to tender. It makes

an offer for the supply of goods or services.

In construction, the main tender process is generally for the selection of the contractor that will construct
the works. However, as procurement routes have become more complex, so tenders may be sought for a
wide range of goods and services (for example, on a construction management contract the works are
constructed by a number of different trade contractors each contracted to the client) and contractors may
take on additional functions such as design and management.

There is also an increasing tendency for suppliers to be aggregated into single contracts, for example,
'integrated supply teams' on public projects may include; the main contractor, designers, sub-
contractors, suppliers, facilities managers, and so on.

Irrespective of the nature of the goods or services that are being sought, the process for
securing tenders may take a number of different basic forms:

Open tendering

Open tendering allows anyone to submit a tender to supply the goods or services that are required.
Generally, an advert will be placed giving notice that the contract is being tendered, and offering an equal
opportunity to any organisation to submit a tender.

On larger projects, there may then be a pre-qualification process that produces a short-list of
suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process is not the
same as selective tendering (see below).

Open tendering has been criticised for attracting tenders / expressions of interest from large numbers
of suppliers, some of whom may be entirely unsuitable for the contract and as a result it can waste a
great deal of time, effort and money. However, open tendering offers the greatest competition and has the
advantage of allowing new or emerging suppliers to try to secure work.

For a more detailed description of the procedures for open tendering, see Tender.

Selective tendering

Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of
possible suppliers is prepared that are known by their track record to be suitable for a contract of the size,
nature and complexity required. Consultants or experienced clients may maintain ‘approved’ lists of
prospective suppliers and then regularly review performance to assess whether suppliers should remain
on the list.

Selective tendering can give clients greater confidence that their requirements will be satisfied and should
reduce the wasted effort that can be involved in open tendering. It may be particularly appropriate
for specialist or complex contracts, or contracts where there are only a few suitable firms. However, it can
exclude smaller suppliers or those trying to establish themselves in a new market.

See selective tendering for more information.

Negotiated tendering

Negotiating with a single supplier may be appropriate for highly specialist contracts, or for extending the
scope of an existing contract. It can reduce the costs of tendering and allow early contractor involvement,
but the competitive element is reduced, and unless the structure of the negotiation is clearly set out there
is the potential for an adversarial atmosphere to develop, even before the contract has been awarded.

See Negotiated tendering for more information.

Serial tendering

Serial tendering involves the preparation of tenders based on a typical or notional bill of
quantities or schedule of works. The rates submitted can then be used to value works over a series of
similar projects, often for a fixed period of time following which the tendering procedure may be repeated.

Serial tendering can reduce tender costs, and may encourage suppliers to submit low rates to secure an
ongoing programme of work.

See also Serial tendering and Measured term contract.

Framework tendering

Clients that are continuously commissioning work might reduce timescales, learning curves and
other risks by using framework agreements. Such arrangements allow the client to
invite tenders from suppliers of goods and services to be carried out over a period of time on a call-off
basis as and when required.

For more information, see Call-off contract.

Framework tender documents are likely to include a request for a schedules of rates and time charges
and a breakdown of resources and overheads to be applied (including any
proposed subcontractor or sub-consultant details).

One or more suppliers are then selected and appointed. When specific projects arise the client is then
able to simply select a suitable framework supplier and instruct them to start work. Where there is more
than one suitable supplier on the framework, the client may introduce a secondary selection process to
assess which supplier is likely to offer best value for a specific project. The advantage of this process to
the client is that they are able instigate a selection procedure for individual projects without having to
undertake a time-consuming pre-qualification process. This should also reduced tender costs.

For more information, see Framework contract.

Single-stage and two-stage tendering

Single-stage tendering is used when all the information necessary to calculate a realistic price is available
when tendering commences. An invitation to tender is issued to prospective suppliers, tenders are
prepared and returned, a preferred tenderer is selected and following negotiations they may be
appointed.

For more information, see Single-stage tendering.

Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the
information required to enable them to offer a fixed price. In the first stage, a limited appointment is
agreed to allow work to begin and in the second stage a fixed price is negotiated for the contract

For more information, see Two-stage tendering.

Public procurement

Public projects or publicly-subsidised projects may be subject to OJEU procurement procedures, enacted
in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must
be advertised in the Official Journal of the EU (OJEU). This is of particular importance because the time
taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for
the selection of contractors.

For more information, see Public procurement.

Construction Engineer Job Description
A construction engineer is a type of civil engineer who plans, directs, and supervises large
construction projects. Most construction engineers specialize in a specific type of project such as
commercial buildings, heavy highway (bridges, tunnels, and underground wastewater plants),
mechanical systems, or electrical. Construction engineers operate as part engineering expert, part
project manager, and part business manager. They creatively serve as a leader and middleman on
construction projects to make sure everything about the project is safe, smooth, and structurally
sound. Construction engineers usually work full time and may work longer 12-hour shifts seven days
per week if they need to travel to a remote location to monitor project progress.

Construction Engineer Duties and Responsibilities

While a construction engineer’s day-to-day duties and responsibilities are determined by where they
work, there are many core tasks associated with the role. Based on our analysis of job listings, these
include:

Develop Construction Plans

Construction engineers manage the planning and design stage of construction projects. They
carefully evaluate the structural, electrical, and mechanical condition of each project. Engineers
carefully inspect all drawings and designs before they are implemented. They plan personnel flows
and decide how other contractors and subcontractors will support ongoing operations. The
construction engineer also analyzes a job’s financial projections to ensure they are accurate and
practical.

Oversee Engineering Processes

Overseeing all the different engineering processes in a construction project is the primary
responsibility of a construction engineer. They are expected to be subject-matter experts and
complete routine tests to make sure that all legal regulations are followed. They keep an up-to-date
understanding of all legal obligations and contract terms to prevent project delays, support all
construction workers, and actively drive projects to completion.

Manage Construction Projects

 Construction engineers bring specific knowledge to construction projects, such as cost control, cost
accounting, and management of project schedules. They constantly refer to schedules to make sure
quality work is done on time. When needed, they facilitate discussions and create solutions between
construction contractors and construction managers. It is their responsibility to eliminate
disagreements in the field and misunderstandings about expected work outcomes.

Draft Technical Support Documents

Keeping up-to-date logs, estimates, change orders, vendor forms, and surveys with different
software is a key role of construction engineers. With documentation, they identify and spot
technical problems in the construction process. If necessary, they secure more materials to keep
construction going.

Communicate with Team Leadership

Weekly meetings with all parties involved in a construction project are common for construction
engineers. Part of their job is to provide necessary status updates and respond to questions from
contractors, clients, and their own company leadership. Furthermore, they regularly assess all
projects to suggest different cost-saving techniques for a project. Many construction engineers are
also required to send weekly project reports to their construction manager.

Construction Engineer Skills and Qualifications

Construction engineers need strong analytical and leadership skills so they can solve technical
engineering challenges while managing a large construction team. Employers typically seek
candidates with a bachelor’s degree, at least two years of experience, and the following skills:

 Civil engineering – construction engineers using technical engineering skills based in

math and physics to predict future problems and find solutions for them
 Project management – construction engineers determine the critical path necessary
for a project to get done, then design plans to make it happen. People at all levels look
to them for guidance
 Construction management – engineers perform various construction management
duties, such as budget management, scheduling, material procurement, and labor
planning
 Leadership – interpersonal skills are essential for construction engineers to lead a
large crew and successfully influence the outcomes of construction projects
 Creativity – construction engineers need to use creativity to innovate and improve
solutions
 Planning skills – planning and design are essential skills for construction engineers to
execute their responsibilities well
 Communication skills – good verbal and written communication skills are important
for construction engineers because they constantly submit reports and share vital
information in a clear, concise manner

The responsibilities of a general contractor

Contractors can serve a construction project from many different roles and
positions. That of a general contractor (main contractor) is potentially the most
influential of all.

A general contractor is responsible for a plethora of details in the course of a

construction project. Finding the right people to get the job done is probably
one of their most important missions. But it’s not the only thing they have to
do.

Taking care of materials, equipment, and any other services required for the
smooth development of the project is part of their job. This is also where
subcontractors can provide valuable help, as in most cases they have their
own network which can support the progress of the project.

Furthermore, here are some of the most common project aspects that
a general contractor can be responsible for:

 Building permits application

 Property security
 Providing (temporary) facilities on site
 Taking care of generated waste
 On-site personnel management
 Site surveying
 Site engineering
 Schedule monitoring
It’s clear, then, that a general contractor is also the one accountable for the
quality of the work delivered to the client. In any case, though, safety should
always be the top priority for everyone involved in a construction project.

Meals

The laws regarding the rights of employees regarding lunch and rest breaks vary by state, so you have to
examine your state's statute for more information. The U.S. Department of Labor provides this information. A
little over half of states require a meal break of between a half-hour to an hour for employees who work over a
certain number of hours. Short rest breaks, which might include time to smoke, go to the bathroom or grab a
snack, of about five to 10 minutes are required in a few states. Generally, even if you do provide breaks as the
employer, you don't always have to pay for them. The rules for workers under 18 tend to be stricter when it
comes to break hours.

Discrimination and Harassment

Federal law protects workers from discrimination in the workplace under a variety of laws, including the Civil
Rights Act, Americans With Disabilities Act, and Age Discrimination in Employment Act. If an employee
feels that he is experiencing discrimination based on race, religion, age, sex, disability or origin, he has the
right to file a complaint against the employer.

The employee also has the right to go to work without the fear of being harassed by coworkers or bosses. That
includes sexual harassment and intimidation by others. Both state and federal laws prohibit harassment in the
workplace.

Safety

Employees have the right to demand a level of safety at work. For instance, working at a factory could present
a number of health and safety hazards. Employees have the right to complain about these risks without the fear
of retaliation from the employer. Federal OSHA laws (the Occupational Safety and Health Act) protect
employees from retaliation for blowing the whistle on unsafe conditions.

Privacy
 In many cases, the employee doesn't have the right to privacy when he's using the property of the company.
For instance, the employer owns the email server that the employee uses to send messages, so that information
is at his disposal. But if an employer performs unreasonable searches on employees or uses information about
the employee's private life to make a decision about his employment, that could lead to legal issues.

RightsandResponsibilitiesofConstructionWo
rkers
The construction industry has been considered a priority industry in Australia. It is one of the most important
industries because it provides our infrastructures such as roads, electricity, and water supply as well as our
buildings, homes, schools, hospitals, and more. Our daily tasks are dependent on all these things.

While we enjoy the benefits on a day-to-day basis, let us consider those people who are responsible in one way or
another for the success of the construction industry – the construction workers and contractors. They toil and
labour every day, and their rights and benefits should not be overlooked. Both construction workers and
contractors have rights and responsibilities, but in this article, let us focus on those which apply to employed
construction workers.

Right to undertake industrial action. Disputes can hardly ever be avoided in any workplace. To resolve these
matters, an employer, employee or industrial association may undertake industrial action; however, this is unlawful
in many circumstances in Australia.

According to Fair Work Building and Construction Australia, industrial action is defined as “the refusal by
employees to perform work or the performance of work in a manner that is intended to reduce productivity in a
workplace”. This is more commonly known as a strike by employees.

Participating in an industrial action is not compulsory but is a matter of choice. It is the right of any employee to
refuse or agree to join in a strike. If an employee should decide to join in one, it is highly recommended that he or
she fully mitigating understand the circumstances and to make sure that it is a protected industrial action to be
taken.

In specific circumstances wherein there is a likely risk to their health and safety, employees have the right to stop
or refuse to work and to request to be assigned other more appropriate and safer tasks. In the event that there is
no safe work available, employers are required to continue paying their employees.

Therightsandresponsibilitiesofconstructione
mployees
Right of entry – This right is given to union officials who may, under certain circumstances, be allowed to enter
worksites. These circumstances may be any of the following:

 If there is a breach in a workplace law and an investigation has to be conducted

 When there is a need to hold discussion meetings with employees
 When union officials exercise their right to conduct a Work Health and Safety inspections
Right against coercion – No employee should be forced or threatened to do what he or she does not want to do
or to perform work that he or she does not want to perform for reasons that will conflict the individual’s freedom of
choice. According to FWBC, coercion is defined as “the act of organising or taking action, or threatening to
organize or take action against another person with the intent to coerce the person, or a third person to do
something they do not want to do”.

Right to join or not to join a union – Also called the Freedom of Association, employees cannot be threatened,
forced or pressured to join (or not to join) or leave a union by their employer or fellow employees. This right is
protected by the Fair Work Act 2009 (FW Act).

Right against discrimination – Under the FW Act, adverse action taken against an employee or prospective
employee for discriminatory reasons by an employer is unlawful. Some examples of such adverse actions are
refusing to hire a prospective employee, firing an employee, changing an employee’s job to his or her
disadvantage, and withholding an employee’s entitlements, among others. It is considered discrimination when
these actions are taken against any person in the workplace due to such personal attributes like gender, sexual
preference, age, mental or physical abilities, religion, marital status, personal responsibilities, pregnancy, national
extraction, political views, social origin, race, and colour.