Bill of Quantities (Construction) (Ghana)

A Bill of Quantities (Construction) in Ghana documents the bill of quantities in a form the parties and authorities can rely on.

The Ghana Institute of Surveyors Act 1986 (PNDCL 193) regulates the registration and practice of quantity surveyors in Ghana. Only a registered quantity surveyor or a firm of quantity surveyors licensed by the GhIS is authorised to prepare and certify a Bill of Quantities for a construction project in Ghana. The GhIS prescribes the Standard Method of Measurement for Building Works in Ghana (GhIS-SMM), which specifies how each work item — earthworks, concrete, masonry, joinery, finishes, mechanical and electrical services — must be measured and described. Bills of Quantities prepared in accordance with GhIS-SMM provide a consistent basis for tendering, enabling fair comparison of tenders submitted under the Public Procurement Act 2003 (Act 663) and under private sector procurement.

The Public Procurement Authority (PPA) in Ghana requires Bills of Quantities to be prepared for construction projects procured by government entities under Act 663. Section 60 of Act 663 and the PPA Standard Bidding Documents for Procurement of Works prescribe the format in which Bills of Quantities must be presented in tender documents, including summary sheets, work sections, provisional sums, and prime cost items. The PPA and the Ministry of Finance's Public Financial Management framework use Bills of Quantities as the basis for contract budget approval, variation order assessment, and payment certificate preparation.

A Bill of Quantities must be distinguished from a Schedule of Rates, which lists unit rates for construction activities without specifying quantities, and from a Priced Activity Schedule, which is used in design-and-build contracts where the contractor is responsible for measuring the works. A Bill of Quantities is most appropriate for traditionally procured construction contracts — such as the Joint Building Contracts Committee (JBCC) form adapted for Ghanaian use or the New Engineering Contract (NEC) adapted for Ghanaian public sector projects — where the employer provides the full design and the contractor prices the measured quantities.

The Ghana Revenue Authority (GRA) uses Bills of Quantities as supporting documents in the assessment of VAT on construction services under the Value Added Tax Act 2013 (Act 870). Construction services supplied in Ghana attract the standard VAT rate of 15% plus the National Health Insurance Levy (NHIL) of 2.5%, the Ghana Education Trust Fund Levy (GETFund) of 2.5%, and the COVID-19 Health Recovery Levy of 1%, applied to the taxable value of construction services as measured in the Bill of Quantities.

A Bill of Quantities (Construction) in Ghana is required in the following circumstances under the Public Procurement Act 2003 (Act 663), the Contracts Act 1960 (Act 25), and Ghana Institute of Surveyors (GhIS) practice standards.

A Bill of Quantities is required for any construction project tendered through the public procurement process in Ghana where the procuring entity — a government ministry, district assembly, or state-owned enterprise — invites competitive tenders under Act 663. PPA Standard Bidding Documents for Procurement of Works require the employer's quantity surveyor to prepare a complete Bill of Quantities as part of the tender package, enabling tenderers to price each measured item rather than submit a lump-sum tender without breakdown.

A Bill of Quantities is needed for private sector construction projects in Ghana where the developer — an individual, a company incorporated under the Companies Act 2019 (Act 992), or a real estate developer licensed by the Ghana Real Estate Developers Association (GREDA) — invites competitive tenders from contractors registered with the Ghana National Contractors Association (GNCA). A priced Bill of Quantities forms the financial schedule to the construction contract, enabling the employer's quantity surveyor to assess monthly payment applications submitted by the contractor.

A Bill of Quantities is required when a contractor applies for a construction loan from a Bank of Ghana-licensed commercial bank to finance a construction project in Ghana. Banks typically require a priced Bill of Quantities approved by a GhIS-registered quantity surveyor as part of the loan appraisal documentation, to establish the project's estimated cost and the basis for drawdown of the loan in tranches linked to construction progress.

A Bill of Quantities is needed when a variation order is issued under a construction contract in Ghana. The Ghana National Construction Authority (NCA), which regulates contractors under the National Construction Authority Act 2011 (Act 820), requires that variation orders — additions to or omissions from the contracted works — be valued by reference to the rates and prices in the original Bill of Quantities, to prevent disputes over the cost of variations.

A Bill of Quantities is required for insurance valuation purposes when insuring a construction project under a Contractors All Risk (CAR) policy with a National Insurance Commission (NIC)-licensed insurer. The insurer uses the Bill of Quantities to establish the reinstatement value of the works for the purposes of the insured sum under the CAR policy.

A Bill of Quantities is needed for any construction project subject to the Environmental Protection Agency (EPA) Environmental Impact Assessment (EIA) process in Ghana, where the project cost — as established by the Bill of Quantities — determines the category of EIA required and the applicable permit fees under the Environmental Assessment Regulations 1999 (L.I. 1652).

A valid Bill of Quantities (Construction) in Ghana under GhIS-SMM standards and the Public Procurement Act 2003 (Act 663) must contain the following essential elements.

Project Identification: Full name of the project, the employer's name and address, the contract reference number (for public sector projects, the PPA procurement reference), the name and GhIS registration number of the quantity surveyor who prepared the document, and the date of issue. GhIS-registered quantity surveyors must certify the Bill of Quantities with their registration number and professional seal.

Preliminary and General Items: A section covering the contractor's general obligations, site-establishment costs, insurance requirements under the construction contract, performance bond obligations under Section 44 of Act 663, health and safety provisions under the Factories, Offices and Shops Act 1970 (Act 328), and other preliminary costs that cannot be attributed to specific work sections. Preliminary costs in Ghanaian construction practice typically represent 8% to 15% of the contract sum.

Work Sections: Separate sections for each major trade or work category — site clearance and earthworks, concrete works (measured in cubic metres), masonry (measured in square metres), carpentry and joinery (measured in linear metres or square metres), roofing, plastering and finishes, plumbing and drainage, electrical installation, and external works. Each item must state the work description, the unit of measurement, the quantity, and a rate and extended amount column for the tenderer to complete.

Provisional Sums and Prime Cost Items: A schedule of provisional sums for work whose scope cannot be fully defined at tender stage — such as specialist subcontract packages or contingency allowances — and prime cost (PC) sums for work to be executed by nominated subcontractors or suppliers. PPA Standard Bidding Documents for Procurement of Works require provisional sums and PC sums to be clearly labelled and excluded from the contractor's profit and overhead calculation.

Summary and Grand Total: A summary sheet collecting the totals from all work sections, adding provisional sums and PC items, and producing the total contract sum excluding VAT. The tenderer signs and dates the summary sheet to confirm that the Bill of Quantities has been priced in full. The VAT-exclusive contract sum is the basis for calculating the 15% VAT, NHIL, GETFund levy, and COVID-19 Health Recovery Levy under the Value Added Tax Act 2013 (Act 870).

Daywork Schedule: A schedule of daywork rates for labour, plant, and materials for use in valuing minor variations that cannot be measured under the standard method. The forms-legal.com Bill of Quantities template for Ghana includes pre-formatted work sections for common Ghanaian construction types, consistent with GhIS-SMM and NCA contractor classification requirements under Act 820, and aligns with PPA Standard Bidding Documents for Procurement of Works.

Additional compliance elements for a Bill of Quantities (Construction) (Ghana) used in Ghana include: Under the Companies Act 2019 (Act 992), the Registrar General's Department (RGD) maintains the register of Ghanaian companies. Section 7 of the Companies Act 2019 governs company incorporation. The Ghana Revenue Authority (GRA) administers corporate tax under the Income Tax Act 2015 (Act 896). The Commercial Division of the High Court in Accra adjudicates business disputes. The Ghana Investment Promotion Centre (GIPC) regulates foreign investment under the GIPC Act 2013 (Act 865). Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.