--- title: "Prepare AOC, BOQ and summary of cost" subject: "Estimating and Costing" chapter: 2 key: "semester_7/estimating_and_costing:aoc-boq-summary-numerical" source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/aoc-boq-summary-numerical site: BCT Engineering --- # Prepare AOC, BOQ and summary of cost Estimating and Costing · Chapter 2: Method of Estimating - Asked in: 2080 Bhadra, 6 marks - Video: [How To Prepare Construction Cost Estimation Format In Excel For Projects](https://www.youtube.com/watch?v=iRFjOwaMYdA) — Cost Engineering Professional - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/aoc-boq-summary-numerical - Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-2 ## Question For a construction project the following quantities of works need to be executed with the given cost. Prepare Abstract of Cost (AOC), Bill of Quantities (BOQ) and Summary of cost including 5% contingency and 13% taxes. | SN | Items of Works | Quantity | Unit | Unit Rate | |---|---|---|---|---| | 1 | Earthwork in excavation | 150 | Cum | 150 | | 2 | Earthwork for backfilling | 100 | Cum | 200 | | 3 | PCC of work for foundation | 5 | Cum | 9000 | | 4 | 2nd class Brickwork for foundation | 2.5 | Cum | 12000 | | 5 | 1st class Brickwork for superstructure | 25 | Cum | 15000 | | 6 | (1:5) Plastering work | 450 | Sqm | 200 | | 7 | PCC for RCC work | 10 | Cum | 16000 | | 8 | Fe-415 reinforcement | 1300 | Kg | 150 | ## Short answer Total cost of works: Rs 937,500.00; add 5% contingency: Rs 984,375.00; add 13% VAT: Rs 127,968.75; grand total: Rs 1,112,343.75. ## Answer #### Abstract of cost (AOC) Amount = quantity x unit rate. | SN | Item of work | Quantity | Unit | Rate (Rs) | Amount (Rs) | |---|---|---|---|---|---| | 1 | Earthwork in excavation | 150 | Cum | 150 | 22,500.00 | | 2 | Earthwork for backfilling | 100 | Cum | 200 | 20,000.00 | | 3 | PCC work for foundation | 5 | Cum | 9,000 | 45,000.00 | | 4 | 2nd class brickwork for foundation | 2.50 | Cum | 12,000 | 30,000.00 | | 5 | 1st class brickwork for superstructure | 25 | Cum | 15,000 | 375,000.00 | | 6 | (1:5) Plastering work | 450 | Sqm | 200 | 90,000.00 | | 7 | PCC for RCC work | 10 | Cum | 16,000 | 160,000.00 | | 8 | Fe-415 reinforcement | 1,300 | Kg | 150 | 195,000.00 | | | **Total of all items** | | | | **937,500.00** | #### Bill of quantities (BOQ) | SN | Description of item | Unit | Quantity | |---|---|---|---| | 1 | Earthwork in excavation | Cum | 150 | | 2 | Earthwork for backfilling | Cum | 100 | | 3 | PCC work for foundation | Cum | 5 | | 4 | 2nd class brickwork for foundation | Cum | 2.50 | | 5 | 1st class brickwork for superstructure | Cum | 25 | | 6 | (1:5) Plastering work | Sqm | 450 | | 7 | PCC for RCC work | Cum | 10 | | 8 | Fe-415 reinforcement | Kg | 1,300 | (The rate and amount columns of the BOQ are filled by the bidder; with the rates above it becomes the priced BOQ shown in the abstract.) #### Summary of cost | Description | Amount (Rs) | |---|---| | Total cost of works (sum of AOC) | 937,500.00 | | Add contingency 5% | 46,875.00 | | Cost including contingency | 984,375.00 | | Add VAT 13% on 984,375.00 | 127,968.75 | | **Grand total** | **1,112,343.75** | The 13% VAT is applied on the cost including contingency, as is the usual Nepal practice. **Answer: Total of works = Rs 937,500.00; with 5% contingency = Rs 984,375.00; grand total with 13% VAT = Rs 1,112,343.75.** ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. In the abstract of cost, how is each amount obtained, e.g. 1st class brickwork (Rs 375,000)? A. Quantity x unit rate = 25 x 15,000 B. Quantity + unit rate C. Quantity / unit rate D. Unit rate x 100 Answer: A. Amount = quantity x unit rate. (Key point: AOC calculation) 2. How does the BOQ differ from the abstract of cost? A. BOQ lists only the amounts with no quantities B. BOQ lists description, unit and quantity; rates and amounts are filled by the bidder C. BOQ includes contingency and VAT D. BOQ is prepared after the work is finished Answer: B. The BOQ is an unpriced list of items and quantities used for bidding. (Key point: BOQ vs AOC) 3. What is 5% contingency on the total of Rs 937,500? A. Rs 4,687.50 B. Rs 93,750 C. Rs 46,875 D. Rs 127,968.75 Answer: C. 0.05 x 937,500 = 46,875, giving Rs 984,375. (Key point: Contingency) 4. On what amount is 13% VAT applied in the summary of cost, and what is the grand total? A. On 937,500 only; grand total Rs 1,059,375 B. On the contingency only; grand total Rs 960,000 C. On 984,375 but not added; total Rs 984,375 D. On cost including contingency (984,375); grand total Rs 1,112,343.75 Answer: D. VAT = 0.13 x 984,375 = 127,968.75, added to 984,375 to give 1,112,343.75. 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