Hospital BOQ, Cost Estimation & Feasibility Study | ACCO
A hospital project can only succeed if its numbers are right. A Bill of Quantities (BOQ), a rigorous cost estimate, and a bankable feasibility study are the three financial pillars that convert a healthcare vision into a fundable, buildable project. Getting hospital BOQ estimation right is what separates hospitals that finish on time and on budget from those that stall.
At Ahmed Construction Company (ACCO), our in-house quantity surveying and cost engineering team prepares transparent, item-by-item BOQs for every hospital project, backed by real-time market rates and 25 years of construction data.
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📊 What Is a Hospital BOQ?
A Bill of Quantities is a structured document listing every material, labour, and equipment item needed to construct a hospital, together with quantity, unit, and unit rate. It becomes the basis of contractor tendering, contract award, progress billing, and variation control.
Typical Sections in a Hospital BOQ
- Site preparation and demolition.
- Earthwork and excavation.
- Substructure and foundation.
- Superstructure (RCC/PEB/steel).
- Masonry and blockwork.
- Waterproofing.
- Roofing and cladding.
- Doors, windows, and hardware.
- Internal finishes (flooring, walls, ceilings, painting).
- External works (paving, landscape, boundary wall).
- HVAC and mechanical services.
- Electrical and low-current services.
- Plumbing and sanitary.
- Medical gas pipeline system.
- Fire safety.
- ICT and structured cabling.
- Modular OT and clinical fit-out.
- Medical furniture and equipment.
- External utilities and connections.
- Preliminaries and general items.
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💼 Feasibility Study — The Business Case Before the BOQ
A feasibility study answers the fundamental question: should this hospital be built at all? A bankable feasibility covers:
- Catchment area demographics and healthcare demand analysis.
- Competitor and market mapping.
- Service mix and bed programme.
- Staffing model and salary projections.
- Capital cost estimate (Class 4 / ±20% accuracy).
- Operating cost projection.
- Revenue projection at multiple utilisation scenarios.
- Discounted cash flow, IRR, NPV, and payback period.
- Sensitivity analysis on key assumptions.
- Financing structure and debt-equity ratio.
- Risk register and mitigation.
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📈 Cost Estimation Classes (AACE)
| Class | Purpose | Accuracy | When Used |
|---|---|---|---|
| Class 5 | Concept screening | -50% to +100% | Idea stage |
| Class 4 | Feasibility study | -30% to +50% | Business case |
| Class 3 | Budget authorisation | -20% to +30% | Schematic design |
| Class 2 | Control estimate | -15% to +20% | Detailed design |
| Class 1 | Tender / bid | -10% to +15% | GFC drawings + BOQ |
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🔍 BOQ Preparation Methodology
- Freeze the GFC (Good For Construction) drawings.
- Quantity take-off from architectural, structural, and MEP drawings.
- Rate build-up using latest Punjab / Sindh / KP CSR and vendor quotes.
- Add labour, overhead, profit, and escalation.
- Compile master BOQ organised by discipline.
- Independent peer review by senior QS.
- Owner sign-off before tender.
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💰 Sample BOQ Cost Breakdown
| Discipline | % of Total BOQ |
|---|---|
| Civil & Structure | 22–28% |
| Masonry & Finishes | 10–15% |
| HVAC | 15–22% |
| Electrical | 10–14% |
| Plumbing & MGPS | 7–10% |
| Fire Safety & BMS | 4–6% |
| Modular OT / Clinical Fit-Out | 8–14% |
| Preliminaries & Overheads | 6–8% |
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⚖️ Traditional Tender vs Turnkey Contract — BOQ Perspective
| Aspect | Traditional Tender | Turnkey (ACCO) |
|---|---|---|
| BOQ Basis | Owner’s QS prepares | Design-build contractor prepares |
| Risk Allocation | Owner absorbs quantity risk | Contractor absorbs quantity risk (fixed price) |
| Variations | Frequent | Minimal (frozen scope) |
| Cost Certainty | Moderate | High |
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🏨 ACCO’s BOQ Portfolio
- LDMC — Full 3,000+ line-item BOQ, phase-wise billing.
- MCH Islamkot — BOQ with remote logistics and escalation provisions.
- Multiple private hospitals — detailed BOQs supporting bank financing.
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❓ FAQ
How long does a hospital BOQ take?
2–6 weeks depending on hospital size, from frozen GFC drawings.
What accuracy can I expect from ACCO’s BOQ?
±5–10% at tender stage; ±15–20% at feasibility stage.
Do you prepare feasibility studies for bank financing?
Yes. ACCO produces bankable feasibility reports acceptable to major Pakistani banks.
How do you handle price escalation in long projects?
Contract escalation clauses tied to steel, cement, and copper indices, with quarterly review.
Can BOQ preparation be done without full drawings?
Only preliminary Class 3–4 estimates. Class 1/2 accuracy requires frozen GFC drawings.
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📞 Get Your Hospital BOQ from ACCO
Ahmed Construction Company (ACCO)
Office 2, 3rd Floor, Bigcity Plaza, Gulberg-III, Lahore, Pakistan
📞 0322-8000190 | ✉️ info@acco.com.pk
