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Construction Law/LUMPSUM UNIT RATE BOQ

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Question
Please kindly tell me the easiest way to distinguish bill of quantities of lumpsum and unit rate contract.

Thanks
Shoaib

Answer
Dear Mr Shoaib,
The BOQ is common for any type of contract as it is only the summary of indicative quantities derived from drawing.
Lump sum and unit rate contract are the compensation models with an emphasis on risk transfer. The risk transfer mechanism or compensation model is mentioned in the General conditions of contract.
however, the BOQ of lump sum contract will NOT have any QRO (quote rate only) items. Sometimes the lump sum contract will not have any bill of quantities. Instead, there will be bill of materials (just the BOQ description without quantities). The BOQ of item rate contract will normally have few QRO items as part of BOQ.
It is advised not to use this inference to identify the type of contract. You need to refer to the general conditions of contract OBLT to exactly know the type of contract.
Hope the doubt is clarified. Sorry for the delay.
regards,
r sivaraman

Construction Law

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R.Sivaraman

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I can answer the questions related to Engineering design, Project management and contract management

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Member in the Institution of Engineers Member in the Institution of technical arbitrators

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Bachelors in Civil Engineering Masters in Business Administration

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