The Relationship Between QTO, BOM and Construction Cost Estimation
For first-time building owners and clients who are not well-acquainted with our industry-specific jargons, this can bring confusion down the road which can effectively hamper productive progress in your building construction. To foster effective collaboration on all stakeholders involved, our engineers help you discover the link between the three cost factors of a building construction to better facilitate how your project complies on a commercial aspect.
Quantity take-offs (QTO), bill of materials (BOM) and construction cost estimation can mean similar altogether for an unfamiliar set of eyes, but let’s tackle their differences one-by-one:
Quantity take-offs or QTO, provide a local viewpoint or micro perspective of your building construction costs. Specifically, quantity take-offs render you high levels of detailed precision on all counts of labor and materials required for every construction trade. In a few words, QTO is your starting point, and our expert engineers can’t emphasize enough how critical quantity take-offs are for the whole building construction process.
- Construction Cost Estimation
While QTO gives you a local angle, construction cost estimation also works the same but touches on an added functionality of macro perspective. As mentioned, QTO is an integral part of construction cost estimation, where dearth of the former component can produce inaccurate estimates. This inaccuracy is also compounded by the fact that the construction cost estimation also factors in variable inputs for total estimated cost. All the more that this means there should be no place for careless errors, no matter the estimation.
In all stages required as per American Society of Professional Estimators, construction cost estimation moves from general to specific as building construction progresses—giving you the opportunity to scrutinize every estimate and audit your construction expenses for cash flow improvement.
Bill of materials is very much akin to your quantity take-offs, but the main difference is that BOM is much broader than QTO insofar as the scope of work is concerned. QTO specifically lists the quantities per material, while BOM talks in a general sense and can range from any types tailored to a particular industry. However, in building and construction landscape, this could mean EBOM and MBOM for engineering and manufacturing departments, respectively. When the need arises, such disciplines can create a subset of their own disciplines ranging from single to multi-level EBOM to further meet the demands of the project. To put simply, our specialized engineers create a specific EBOM for mechanical, electrical, plumbing and fire protection engineering of your building project.
This leads us to a common point: all three aspects differ in their own way, but they all work together to create an effective cost constraint for your building project. Our proficient engineers are all well-versed in creating these specialist documents, and then interweaving a comprehensive large-scale connection among the three elements to integrate into your building project’s success. At New York Engineers, we believe that the whole is greater than the sum of its parts.