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Abdul-Aziz, A-R (1998) Adapting procurement practices to suit a host country as a probable localization tactic. Journal of Construction Procurement, 4(01), 45–58.
Abdul-Aziz, A-R (2001) Clandestine foreign site operatives in Japan: a focus on Malaysians. Journal of Construction Procurement, 7(01), 51–72.
Akintoye, A, Beck, M, Hardcastle, C, Chinyio, E A and Asenova, D (2003) Outsourcing the Risk Analysis Function in 'Private Finance Initiative' Projects. Journal of Construction Procurement, 9(01).
Al-Meshekeh, H S and Langford, D A (1999) Conflict management and construction project effectiveness: a review of the literature and development of a theoretical framework. Journal of Construction Procurement, 5(01), 58–75.
Baden-Hellard, R (1996) The partnering philosophy: a procurement strategy for satisfaction through a teamwork solution to project quality. Journal of Construction Procurement, 2(01), 41–55.
Badger, W W and Mulligan, D E (1995) An implementation model of an alliance. Journal of Construction Procurement, 1(01), 21–37.
Baldwin, A N and McCaffer, R (2000) Identifying research requirements for collaborative design. Journal of Construction Procurement, 6(01), 56–66.
Birnie, J (1999) Private Finance Initiative (PFI): UK construction industry response. Journal of Construction Procurement, 5(01), 5–14.
Bowen, P A and Edwards, P J (1998) Building cost planning and cost information management in South Africa. Journal of Construction Procurement, 4(01), 16–26.
Chen, P H and Chang, L M (2002) Feasibility analysis of Taiwan high speed rail project. Journal of Construction Procurement, 8(01), 64–78.
Cheung, S-O (1997) Risk allocation: an essential tool for construction project management. Journal of Construction Procurement, 3(01), 16–27.
Chritamara, S and Ogunlana, S O (2001) Problems Experienced on Design and Build projects in Thailand. Journal of Construction Procurement, 7(01), 73–93.
Consoli, G G S (2004) Conducting an ethno-methodological study for the comparison of private and public prison delivery processes in Australia. Journal of Construction Procurement, 10(01).
Cox, A and Thompson, I (1998) Has contracting lost its customer focus?. Journal of Construction Procurement, 4(01), 5–15.
Craig, R (1999) How innovative is the common law of tendering?. Journal of Construction Procurement, 5(01), 15–26.
Davenport, D M and Smith, R (1995) International procurement systems: assessment of required levels of client participation in construction projects. Journal of Construction Procurement, 1(01), 38–49.
Dawood, N N (2001) Development of a Forecasting Methodology for Cost Indices: An Application to the Greek Construction Industry. Journal of Construction Procurement, 7(01), 42–50.
Diekmann, J, Ashley, D, Bauman, R, Carroll, J and Finlayson, F (2000) Viability of Privatised Transportation Projects: An Evaluation Tool For Design/Build Teams. Journal of Construction Procurement, 6(01), 33–43.
Dowd, V G (1996) The effect of economic cycles on the development and use of alternative procurement systems in the UK construction industry during the period 1965-1995. Journal of Construction Procurement, 2(01), 11–29.
Edkins, A J and Smyth, H J (2006) The imperative of trust in PPPs: evaluations from the provision of ‘full service’ contracts. Journal of Construction Procurement, 12(01).
Edwards, P J and Bowen, P A (1999) Risk and risk management in construction projects: concepts, terms and risk categories re-defined. Journal of Construction Procurement, 5(01), 47–57.
Goodchild, B and Beatty, C (2000) Assessing the procurement practices of housing associations: a case study of new build in Scotland. Journal of Construction Procurement, 6(01), 20–32.
Gounden, S (1996) Reconstruction and development in South Africa: the construction industry and related procurement reform. Journal of Construction Procurement, 2(01), 3–10.
Graham, P M and Walker, D H T (2000) First Steps Towards Acheiving Environmental Sustainability for Developed Projects - An Holistic Life-Cycle Procurement Objective. Journal of Construction Procurement, 6(01), 67–84.
Greenwood, D J and Yates, D J (2006) The determinants of successful partnering: a transaction cost perspective. Journal of Construction Procurement, 12(01).
Hampson, K and Kwok, T (1997) Strategic alliances in building construction: a tender evaluation tool for the public sector. Journal of Construction Procurement, 3(01), 28–41.
Hassan, T M and McCaffer, R (2003) Virtual Enterprises in Construction: ICT, Social and Legal Dimensions. Journal of Construction Procurement, 9(01).
Hassanein, A A G and Afify, H M F (2006) Contractors' risk identification behaviour: a case study. Journal of Construction Procurement, 12(01).
Hindle, R D and Muller, M H (1997) The role of education as an agent of change: a two-fold effect. Journal of Construction Procurement, 3(01), 56–69.
Hoare, D and Broome, J (2001) Bills of Quantities versus Activity Schedules for Civil Engineering Projects. Journal of Construction Procurement, 7(01), 11–26.
- Type: Journal Article
- Keywords: Construction contract documentation; payment systems (Bills of Quantities; Activity Schedules); NEC; Engineering and Construction Contract
- ISBN/ISSN: 1358-9180
- URL:
- Abstract:
Bills of Quantities are the classical form of financial control used for pricing construction projects throughout much of the world. The New Engineering Contract, now published in its second edition as the Engineering and Construction Contract (ECC), has two main options for dealing with Priced Contracts: Option A adopting Activity Schedules and Option B using Bills of Quantities. It has been previously concluded that the use of Activity Schedules (option A) is preferable to the use of Bills of Quantities (option B) for the majority of engineering and construction work let under a priced contract with the NEC : ECC as the contract form. However, use of Bills of Quantities may be more appropriate for work in the building industry or for minor civil engineering work. The primary aim of this paper is to review these two systems, their relative strengths and weaknesses, and to make the case to the practitioner not conversant with Activity Schedules for their increased use in the appropriate contractual situations. The paper starts by examining some commonly held, but often false, assumptions about Bill of Quantities. It then reviews two models of how costs are built up for construction projects: the operational estimating model and an accountancy model. Following this, it examines three payment mechanisms for Priced Contracts: Conventional Bills of Quantities, Method Related Bills of Quantities and Activity Schedules. After outlining the possible advantages and disadvantages of each, the paper addresses the theoretical mis-matches between them, how costs are built up and how these result in problems in practice. The need for training for practitioners and organisations unfamiliar with the concept and detail of the new styles of contract is identified. The paper also summarises research findings of factors inputing in practice to the choice of type of contract form. It concludes that experience to date with the New Engineering Contract indicates that for civil engineering works, the use of Activity Schedules is normally preferable to remeasured Bills of Quantities. However, for minor civil engineering work, where the major risk is a small change in quantities, Bills of Quantities may be appropriate. For building work, providing it is actually fully designed and only minor changes are foreseen, Bills of Quantities again may be more appropriate.
Holt, G D, Proverbs, D G and Whitehouse, L (2001) A survey of public sector procurement in England. Journal of Construction Procurement, 7(01), 3–10.
Hunter, K and Kelly, J (2004) Value management workshops and partnering conundrums. Journal of Construction Procurement, 10(01).
Ibrahim, A D, Price, A D F and Dainty, A R J (2006) An analysis of success factors for public private partnerships in infrastructure projects in Nigeria. Journal of Construction Procurement, 12(01).
Kashiwagi, D T, Halmrast, C T and Tisthammer, T (1996) Intelligent procurement of construction systems. Journal of Construction Procurement, 2(01), 56–65.
Kenley, R, London, K and Watson, J (2000) Strategic procurement in the construction industry: mechanisms for public sector clients to encourage improved performance in Australia. Journal of Construction Procurement, 6(01), 4–19.
Khalfan, M M A and McDermott, P (2006) Once unthought, now the best practice within the construction sector. Journal of Construction Procurement, 12(01).
Kumaraswamy, M, Rowlinson, S and Phua, F (2002) Accelerating cultural changes through innovative procurement processes: a Hong Kong perspective. Journal of Construction Procurement, 8(01), 3–16.
Lahdenperä, P (2001) An Analysis of the Statistics on Project Procurement Methods in Finland, 1989-1998. Journal of Construction Procurement, 7(01), 27–41.
Lam, E W M, Chan, A P C and Chan, D M W (2006) Drivers for design-build applications in the public sector of Hong Kong. Journal of Construction Procurement, 12(01).
Langford, D A, Abukhder, J, Murray, M, Hardcastle, C and Vernea, E (2004) Rethinking construction: what about the SMEs?. Journal of Construction Procurement, 10(01).
Langford, D, Martinez, V and Bititci, U (2003) Best value in construction: towards an interpretation of value from client and constructor perspectives. Journal of Construction Procurement, 9(01).
Lau, E and Rowlinson, S (2005) The value base of trust for the construction industry. Journal of Construction Procurement, 11(01).
Leung, M-y and Yu, R K T (2003) An Investigation of Conflict Resolution in the Construction Industry. Journal of Construction Procurement, 9(01).
Lewis, T M (2005) Public procurement and corruption in Trinidad and Tobago. Journal of Construction Procurement, 11(01).
Ling, F Y Y and Kumaraswamy, M M (2005) The role of trust in team integration: a survey of contractors, consultants and clients in Singapore. Journal of Construction Procurement, 11(01).
Merchant, A and Bajaj, D (2002) An analysis of the use of the "design-build" project delivery system by interior design firms, and its effectiveness in delivering fit-out projects. Journal of Construction Procurement, 8(01), 17–34.
Moore, D R and Dainty, A R J (2000) Work-Group Communication Patterns in Design and Build Project Teams: An Investigative Framework. Journal of Construction Procurement, 6(01), 44–55.
Morledge, R and Adnan, H (2006) Critical Success Factors in Construction Joint Venture Projects in Malaysia. Journal of Construction Procurement, 12(01).
Naoum, S G and Mustapha, F H (1995) Relationship between the building team, procurement methods and project performance. Journal of Construction Procurement, 1(01), 50–63.
Ngowi, A B (1997) Impact of culture on construction procurement. Journal of Construction Procurement, 3(01), 3–15.
Pryke, S D (2004) Analytical methods in construction procurement and management: a critical review. Journal of Construction Procurement, 10(01).
Rashid, K B A and Morledge, R (1998) Constraints in resources and functions within the process of construction procurement in Malaysia. Journal of Construction Procurement, 4(01), 27–44.
Rashid, K B A and Morledge, R (1999) Strategies to remove or alleviate constraints affecting the processes of construction procurement in Malaysia. Journal of Construction Procurement, 5(01), 27–41.
Ren, Z, Carter, C D, Hassan, T M and Anumba, C J (2005) Trust building for SMEs through an e-engineering hub. Journal of Construction Procurement, 11(01).
Ross, A D and Goulding, J S (2006) The construction estimator’s approach to the collection and assessment of supply chain price information. Journal of Construction Procurement, 12(01).
Seymour, D E and Rooke, J D (1998) Construction management research and the attempt to build a social science. Journal of Construction Procurement, 4(01), 59–73.
Shen, Q and Liu, G (2002) Value management applications in China's construction industry. Journal of Construction Procurement, 8(01), 35–47.
Smith, A and Wilkins, B (1996) Team relationships and related critical factors in the successful procurement of health care facilities. Journal of Construction Procurement, 2(01), 30–40.
Soetanto, R, Proverbs, D G and Cooper, P (2002) A tool for assessing contractor performance. Journal of Construction Procurement, 8(01), 48–63.
Songer, A D and Ibbs, W C (1995) Managing requests for proposal development in public sector design-build. Journal of Construction Procurement, 1(01), 64–80.
Swan, W, McDermott, P, Khalfan, M M A, Cooper, R, Rees, C and Wood, G (2005) The Development of Trust Inventory. Journal of Construction Procurement, 11(01).
Tah, J H M, Aouad, G, Lee, A and Wu, S (2004) Conceptual information modelling for risk analysis and management in an nD-modelling environment. Journal of Construction Procurement, 10(01).
Thorpe, A, Dainty, A R J and Hatfield, H (2003) The realities of being preferred: specialist subcontractor perspectives on restricted tender list membership. Journal of Construction Procurement, 9(01), 47-55.
Walker, D H T (1997) Construction time performance and traditional versus non-traditional procurement methods. Journal of Construction Procurement, 3(01), 42–55.
Walker, D H T (1995) The influence of client and project team relationships upon construction time performance. Journal of Construction Procurement, 1(01), 4–20.