Bill of Quantities Contract in Civil Engineering

Types of Civil Engineering Contracts

• Bill of Quantities Contract, also known as "Item rate contract", is the most commonly used form of contract for civil engineering works, which includes a priced BOQ (bill of quantities) that helps keep the tender cost low due to maximum competition among contractors.

Scheduled Contract

• In this type of contract, the client provides a schedule of unit rates covering each item of work and asks contractors to quote a percentage above or below the given scheduled rates, known as premium or rebate/discount respectively.

Lump Sum Contract

• In a Lump Sum Contract, the contractor agrees to execute specified works for a fixed amount of money, with the nature and extent of the work indicated on drawings and materials/workmanship described in specifications, but no BOQ is provided.

Package Deal Contract

• This type of contract involves awarding a project as a whole to a well-reputed contracting firm that provides both design and construction facilities, often for special buildings like hotels, picture houses, or shopping plazas.

Serial Contract

• A Serial Contract occurs when a contractor is already working on certain contracts at a construction site and is awarded more works at the same site, usually at the same rates, depending on their previous performance.

Tendering and Contract Administration

• A "standard" refers to a level of quality or excellence that serves as a norm or benchmark.
• A "tender" is a written offer by a tenderer to supply goods, services, or works at a price, in response to an invitation to tender.
• "Tender documents" are the documents provided by the procuring agency as a basis for preparation of tenders.

Types of Bidding

• There are two types of bidding in procurement: open or competitive bidding, and closed (sealed) or non-competitive bidding.
• Open auction involves bidding starting from a reserve price, terminating when all but one bidder has dropped out.
• Sealed bidding involves independent submission of bids, with the highest bidder winning and paying their bid.
• The envelop containing eligibility criteria is opened first, and the financial proposal of only those who meet the qualification criterion are opened, with the tender awarded to the most economical bidder.

Contracts

• A contract is an agreement that specifies legally enforceable rights and obligations between two or more mutually agreeing parties, often involving the transfer of goods, services, money, or promises to transfer any of those at a future date.