Comparing Fit-Out Quotes Line by Line: Reading the BOQ

The cheaper quote usually prices a different scope

Two fit-out quotes arrive for the same floor. One is noticeably lower. The instinct is to ask the higher bidder to match it.

That instinct assumes the two numbers describe the same work. They rarely do. The cheaper quote is usually a different scope, not a better price: an item left out, an exclusion added, a cheaper make assumed, a services package assumed to be someone else's, or an allowance set low. The difference returns later, as variations priced without competition, after the contract is signed.

For a CEO or CFO the question is therefore not which total is lower. It is what each total buys. This article covers how to read a bill of quantities (BOQ) line by line to find that out. The broader question of choosing the contractor itself, including references and the site team, is covered in how to choose an office fit-out contractor.

Where the totals differ

Most of the gap between two quotes sits in a handful of places. Lining these up is the work of comparison.

Read the exclusions before the prices

The exclusions list is the most important page in any quote, and the one most often skipped. Common exclusions on fit-out quotes include air conditioning modifications, sprinkler and detection changes, statutory approvals and their fees, landlord charges, after-hours working, IT and AV systems, loose furniture, signage, and making good to common areas.

Assumptions matter as much. "Existing ceiling retained", "floor assumed level", "power available at the distribution board" and "work during normal hours" are each a scope decision. If the assumption turns out false, the cost is a variation. Put every bidder's exclusions and assumptions side by side before looking at a single rate.

Provisional sums and PC items are not prices

A provisional sum is an allowance for work that is not yet defined. A prime cost (PC) item is an allowance for something to be selected later, such as a specific light fitting or tile, usually with the contractor's handling and installation priced separately.

Both are placeholders. The final cost is whatever the defined item turns out to be. Two things follow for comparison:

• Align the allowances. If one bidder carries a low allowance for an item and another a realistic one, the totals differ for no real reason. Issue the same allowance figure to every bidder, or remove the item and price it separately.
• Count them. A quote with many provisional sums has an uncertain total, however precise it looks. Reducing them before contract, by completing the design, is the best way to make the number firm.

Make lists and specifications

Two lines can read identically, such as "gypsum partition with acoustic insulation" or "LED panel light", and describe very different products. The make list decides which.

Ask every bidder to price against the same approved make list, with each item naming the makes you are willing to accept. Where a bidder wants to offer an alternative, have it priced as a separate line with its technical data, so the decision is visible. An undefined "or equivalent" is where both price and quality drift without anyone deciding.

Quantities, rates and what "lump sum" actually fixes

A BOQ has two parts in every line: a quantity and a rate. Compare both.

Under-measured quantities make a quote look cheaper and return as variations when the work is measured on site. Where quotes are item-rate, agreeing the method of measurement, commonly referenced to IS 1200, avoids arguments later about how a quantity was calculated.

A lump-sum quote usually fixes the price for the scope described in the tender documents. It does not fix the price of work outside that scope, provisional sums, or risks the contract leaves with the client. Some quotes headed "lump sum" also say quantities are "subject to measurement", which in practice makes them re-measured. How the two structures allocate risk is set out in turnkey vs item-rate fit-out contracts.

The MEP scope split

Services are where scope gaps are largest and least visible. For each of air conditioning, electrical, fire detection, sprinklers, plumbing and low-voltage systems, check:

• Where the contractor's scope starts and stops, for example from the landlord's tap-off or distribution board onward.
• What the landlord or a nominated contractor does, and whether the bidder has included coordination and builder's work for it.
• Final connections, testing and commissioning, which are easily assumed to be someone else's.
• Drawings and documentation, including coordinated services drawings and as-builts.

Building services provisions sit in NBC 2016, Part 8 and fire and life safety in NBC 2016, Part 4; what a particular layout requires is for the project's engineer to determine. For comparison, what matters is that each bidder has priced the same services scope to the same boundary.

Preliminaries, overheads and contingency

Preliminaries cover the cost of running the site: supervision, site management, protection of the building, insurances, temporary services, cleaning, waste removal and the time of the project team. They are real costs. A quote with unusually thin preliminaries either recovers them inside the rates or plans to run the site with less supervision.

Contingency is worth asking about directly. Some bidders show it as a line, some bury it in rates, some carry none. A visible contingency controlled by the client is the most transparent arrangement.

Commercial terms change the price too

Payment terms move money between the parties, and so move price. A larger advance, faster payment cycle or lower retention makes a contract cheaper to finance for the contractor and can justify a lower number. When comparing, line up the payment schedule, any advance and its security, retention and its release, and how variations will be priced. How retention and bank guarantees work is covered in retention money and bank guarantees in fit-out contracts.

Check validity as well. A quote valid for a short period, or one that allows price changes for materials, may not hold by the time the contract is signed.

Common mistakes

• Comparing totals first. The conversation anchors on a number before anyone knows what it includes.
• Skipping the exclusions page. The largest differences sit there.
• Accepting different allowances. Provisional sums vary between bidders and distort the comparison.
• Leaving "or equivalent" undefined. Makes drift and nobody decides.
• Assuming services are complete. The MEP boundary is never checked.
• Ignoring payment terms. Two quotes with different cash flow are compared as if equal.
• Negotiating down instead of normalising. The lower bidder's gaps return later as variation orders.

A line-by-line checklist

• Has every bidder priced the same drawings, specification and BOQ?
• Are all exclusions and assumptions listed side by side?
• Is every allowance the same figure across bids?
• Does each bidder price against the same approved make list?
• Have quantities been checked against the drawings?
• Is the MEP boundary the same in every quote, including testing and commissioning?
• Are preliminaries and contingency shown, and comparable?
• Are payment terms, retention and validity aligned?
• What, exactly, does the lump sum fix?

Standards referenced

Method of measurement of building works in IS 1200; building services provisions in NBC 2016, Part 8; fire and life safety provisions in NBC 2016, Part 4. The services scope and specification for a particular project must be confirmed by the project's engineer, and the commercial and legal effect of contract terms by the client's legal adviser.