BOQ and rate analysis: how to price construction work

By the QuantProc team · Updated 21 October 2026

What is a BOQ?

A bill of quantities (BOQ) lists every item of work in a project: a description, the unit of measurement, the quantity and the rate. Quantity × rate gives each item's amount, and the total is the estimated cost of works. Clients use the BOQ to compare tenders and to pay for measured work; contractors use it to price bids and to control cost during execution.

Step 1: Break the work into items

Follow the drawings and specifications and group the work by trade: earthwork, PCC and RCC, masonry, plaster, flooring, false ceiling, doors and windows, painting, plumbing, electrical, HVAC, fire-fighting and so on. Each item needs a clear specification, for example "12 mm thick cement plaster 1:4 on brick walls", so that everyone prices the same thing.

Step 2: Take off quantities

Measure each item from the drawings in its standard unit:

Work	Unit
Earthwork, concrete, masonry	cum (cubic metre)
Plaster, flooring, painting, false ceiling	sqm (square metre)
Skirting, pipes, cable	rmt (running metre)
Reinforcement steel	kg or MT
Fixtures, doors, light fittings	nos (numbers)

Follow the measurement rules in your contract (for example IS 1200 in India), such as which openings are deducted from wall areas.

Step 3: Rate analysis

The rate for one unit of an item is built up from:

• Materials: quantity per unit (including wastage) × market rate
• Labour: man-days per unit × wage, by skill (mason, helper, carpenter)
• Tools, plant and machinery: hire or depreciation per unit
• Sundries and water charges: often a small percentage
• Overheads and contractor's profit: commonly 15% in CPWD-style analysis

Analyses are usually done for a convenient quantity, such as 10 sqm or 1 cum, and then divided down to the unit rate.

Worked example (illustrative figures)

12 mm cement plaster 1:4, per 10 sqm:

Component	Quantity	Rate (₹)	Amount (₹)
Cement	0.9 bags	400 / bag	360
Fine sand	0.15 cum	2,400 / cum	360
Mason	1.0 day	900 / day	900
Helper	1.2 days	650 / day	780
Water, scaffolding, sundries	lump sum		150
Cost for 10 sqm			2,550
Overheads & profit @ 15%			383
Rate for 10 sqm			2,933
Rate per sqm			≈ 293

The quantities and prices above only show the method. Use your own constants and current local rates, or your client's schedule of rates.

Step 4: Add contingency and GST

Add a small contingency (often 2–5%) for unforeseen items, then GST at the rate that applies to your contract. Most construction works contracts attract 18% GST, but some government, affordable-housing and specified works carry lower rates. Check the current notification for your SAC code.

Mistakes that cost margin

• Using last year's material rates in a rising market
• Forgetting wastage, lead (carriage) and lift charges
• Pricing only the item, not the preliminaries: site office, security, insurance, cleaning, testing
• Not checking quantities in the client's BOQ against the drawings
• Losing the link between the BOQ and actual purchases once work starts

From estimate to control

Try the free BOQ estimate calculator to price a bill of quantities and export it to Excel. When you win the job, QuantProc construction ERP turns the same BOQ into the project budget, so every purchase and every bill is checked against it.