Price Composite Bill Items

In the previous sections, the pricing of standard bill items via their worksheets was discussed in detail. Now we turn our attention to the pricing of composite bill items. As described earlier, the components of a composite bill item are standard bill items that are priced using the worksheets as described above. Once the prices/rates of the component items are known, their contributions are weighted and summed to yield the price/rate of the composite bill item.

In Composite Bill Item we showed how a composite bill item is created and edited using the "Composite Item Editor". Following the procedures described there, we now consider an example of a typical composite bill item, namely that of preliminaries and general expenditure called "P&G - Composite". The quantity and unit of "P&G - Composite" is a single "Lump sum"

To keep things simple, our "P&G - Composite" comprises only two component items, namely a "Site agent" and "Site clearing". The site agent is paid a fixed salary per month and site clearing has to be priced per square foot, based on using a TLB machine and general labor. The worksheets of the two-component items are shown in Figure: Component item worksheets. Notice that in this example the units of the composite and both component items are all different.

Having developed and priced the component items, the quantity of the composite item can now be specified, as well as the weighting factor of each component item. The quantity of "P&G – Composite" is 1, i.e., a single lump sum. Assuming that the project is scheduled to run for 14 months, the weighting factor of "Site agent" is 14. Assuming also that the amount of site clearing comprises 100,000 square feet, the weighting factor of "Site clearing" is 100,000. The resulting net rate for "P&G – Composite" is shown in Figure: Priced Composite Bill Item, in the "Composite Item Editor" view, as well as the BOQ view.