A priced bill of quantities connects the work measured on a drawing to the cost of supplying and installing it. The calculation is easier to review when measured quantity, allowance, material rate, and labor assumption each have their own column. Keep the source drawing reference alongside them.
1. Give each BOQ line a clear scope and unit
Use a description that identifies the item you will actually buy or install. “Lighting” is too broad for a line with multiple fixture specifications. Separate the types when they have different material prices or installation requirements.
Where a project specifies a formal measurement method, follow it. For example, RICS NRM 2 covers detailed measurement for building works. This short USD example explains the arithmetic; it is not a bill prepared to that standard.
- Description and item tag or specification reference.
- Drawing sheet and revision.
- Measured quantity and unit, such as EA, LF, or SF.
- Allowance and purchasing quantity.
- Material unit cost, labor hours per unit, and labor rate.
- Any included accessories or excluded work.
Choose the unit before entering prices. A supplier price per box, per 100 feet, or per assembly needs conversion before it can be multiplied by an individual-unit takeoff. Preserve the supplier quote date and scope with the estimate.
2. Calculate material and labor separately
The E320 showcase contains 35 A2 fixtures and 21 B fixtures. This example prices only those two types; it is not the full lighting scope.
| Item / reference | Measured | Allowance | Priced qty | Material / unit | Labor h / unit | Direct cost |
|---|---|---|---|---|---|---|
| A2 recessed LED fixtureE320 | 35 EA | 0% | 35 EA | $210.00 | 1.5 | $11,287.50 |
| B shallow-plenum LED fixtureE320 | 21 EA | 0% | 21 EA | $190.00 | 1.6 | $6,510.00 |
| Direct-cost subtotal for these lines only | $17,797.50 | |||||
Labor rate: $75.00/hour. Each line = allowed quantity × material unit cost + allowed quantity × labor hours/unit × labor rate. Round allowed quantities up to whole units in this example. Labor is applied to allowed quantity here; use installed quantity instead if that is how your assembly is defined. Rates are teaching assumptions, not current supplier quotes.
Scope still to price
- Other fixture types, controls, branch wiring, conduit, supports, and terminations
- Access equipment, testing, permits, taxes, overhead, and profit
For the 35 A2 fixtures, material costs 35 × $210 = $7,350. Installation labor is 35 × 1.5 hours = 52.5 hours. At the illustrative $75/hour rate, that is $3,937.50 of labor and $11,287.50 of direct cost.
The B fixture line contributes $3,990 of material and $2,520 of labor. Both lines together total $17,797.50. These are teaching rates applied to the existing showcase quantities, not a supplier quotation or a complete project estimate.
Define what your labor rate includes. If it already includes a particular burden or overhead allowance, avoid adding that same cost again later. Productivity also depends on the specific installation conditions; record the basis instead of treating an example allowance as a universal rate.
3. Apply allowances without losing the measurement
Keep net measured quantity and allowed quantity separate. The plumbing example has 262 LF of vent pipe. A 10% allowance gives 288.2 LF, rounded up to 289 LF in that example. At $15.12/LF, material is $4,369.68.
Its stated labor model applies 0.16 hours to each allowed foot: 289 × 0.16 × $75 = $3,468 of labor. The line total is therefore $7,837.68. If your assembly applies labor only to installed length, use 262 LF for labor instead and document that choice.
Actual purchasing may require stock lengths, pack sizes, minimum orders, or supplier rounding. Keep those procurement rules explicit. An allowance should not conceal unmeasured fittings, risers, or missing scope.
Download the plumbing calculation (CSV) to compare the net and allowed quantities.
4. Convert a measured quantity to supplier packs
Keep the BOQ measurement and the purchase order in their own units. In this illustrative tile example, the drawing quantity is 105 m², the chosen allowance is 7%, and the supplier sells whole boxes covering 1.44 m² each at $28 per box. These are teaching inputs, not a recommended waste factor or a live supplier quote.
| Step | Calculation | Result |
|---|---|---|
| Net BOQ quantity | Reviewed drawing measurement | 105 m² |
| Required quantity | 105 × 1.07 | 112.35 m² |
| Unrounded boxes | 112.35 ÷ 1.44 | 78.0208 boxes |
| Order quantity | Round up to whole boxes | 79 boxes |
| Purchased coverage | 79 × 1.44 | 113.76 m² |
| Packaging surplus | 113.76 − 112.35 | 1.41 m² |
| Material purchase cost | 79 × $28 | $2,212 |
The 105 m² net quantity stays unchanged. The 7.35 m² allowance and 1.41 m² packaging surplus explain the difference between net and purchased quantities. Do not add 7% again to the 79 boxes or multiply 105 m² by a price per box. If the supplier requires multiples of four boxes, order 80 boxes and recalculate the cost.
Carry the item, drawing sheet and revision, supplier pack coverage, order increment, unit price, and quote date into your purchasing review. Price installation labor against the quantity basis in your assembly, and add delivery, tax, accessories, and other scope separately.
Download the BOQ procurement worksheet (Excel). Replace the yellow input cells to recalculate required quantity, whole-box rounding, surplus, and material cost. This is a standalone worksheet for your review; the app's quantity export does not automatically create a procurement order.
5. Distinguish cost, markup, and gross margin
Complete the relevant cost base before calculating the selling price: remaining trade scope, project-specific costs, and any overhead treatment your estimating method requires. State what is in that base.
15% markup on cost
Selling price = cost × 1.15.
For a simplified $10,000 cost base: $10,000 × 1.15 = $11,500. The $1,500 difference is about 13.04% of the selling price.
15% gross margin
Selling price = cost ÷ (1 − 0.15).
For the same simplified cost base: $10,000 ÷ 0.85 = $11,764.71, rounded to cents. The difference is 15% of the selling price before other unaccounted expenses.
Neither example is a recommended percentage. They show why the two calculations are not interchangeable. Apply taxes, discounts, and other commercial adjustments according to the actual quote requirements.
6. Check the complete quote before issuing it
Reconcile the BOQ subtotal to the estimate and then to the proposal. If the proposal groups several lines into one price, keep the supporting detail available. Identify alternates and allowances so the customer can tell what the base price includes.
- Check supplier scope and units against each material line.
- Confirm whether labor is per unit or a total number of hours.
- Check that waste and assembly components are not added twice.
- State exclusions, quote validity, and unresolved assumptions.
- Confirm all required sheets and revisions are represented.
See the BuildVision BOQ workflow and use the construction quote template to present the reviewed scope.