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Good question, i would like also to know the difference of the two thinngs does pmi methodologies substitute old way system of (BOQ) of determining the project budget?
There is no relation between BOQ and WBS. Each of them represents a view of the project from a different perspective.
The BOQ provides a listing of project items which are similar in their specifications (description) together with their quantities, unit of measure and unit rate (the total cost (or total amount) of a typical project BOQ item is the result of multiplication of Unit Rate and Quantity. the summation of the BOQ items amounts gives the total amount of the project.
On the other hand, the WBS is a break down of the project into fragments each fragment is further broken down into smaller fragments until we arrive in a manageable level of details. A WBS item may consist of several BOQ items. A BOQ item may exist in several WBS items.
BOQ is the term Bill of Quantities which means is a document used in tendering in the construction industry / supplies in which materials, parts, and labor (and their costs) are itemized.
it consist of:-
Price per Unit
lump sum( Grand total)
However WBS is (a hierarchical decomposition of total scope of work -hierarchical of deliverable).
it might consist of:
duration in (days, ...)
Resources (personnel or material)
As Nabeel said is correct!!!! BOQ contains the divisions of projects and each division has description with brief of specs. with units, qty. and the cost of each each item and the summary of project budget. It uses to review, track and issue the financial statement .
While WBS a break down of the project into deliverable into smaller until we arrive in a manageable level of details. A WBS item may consist of several BOQ items. It uses for progress and performance repoting!!
BOQ can be split in between several WBS, where a WBS can be an Area, Module, System, Elevation, Tie Points.
Thanks a lot, we'll understood. Appreciated.
To add another perspective:
WBS is concerned with the work of the project, only the work and all the work. It is breaking down the work into work packages, which include activities leading to deliverables.
So, a WBS would not include a BoQ element that does not require work. But a WBS would include work e.g. by the project manager and the quality manager (not sure if that is included in a BoQ).
Interesting discussion, a priced BOQ documents the cost of work required to complete the project. If you are using Earned Value Management to monitor your project, you will need a resource/cost loaded schedule which is basically built with WBS. The relationship between the WBS and BOQ is that it must sum up the same amount of money as agreed in the contract.
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