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Bill of Materials (BOM) in Project Management: Types, Benefits & Steps to Create

Bill of Materials (BOM) in Project Management: Types, Benefits & Steps to Create
Mohammed Ali Khan

Published By

Mohammed Ali Khan
Construction/Contracting
Nov 28, 2025

Construction projects in Saudi Arabia often involve tight timelines, multiple teams, and long lists of materials, or what many in the industry refer to as قائمة المواد (Bill of Materials). Without a clear system, mistakes and delays can quickly add up, especially in إدارة المشاريع (project management) environments. 

A recent study on project management education shows that skilled professionals are in high demand, especially in Saudi Arabia, where big projects and ambitious initiatives like NEOM under Vision 2030 are changing the construction industry.

In this blog, you will learn what a Bill of Materials (BOM) is, the types used in construction, how it supports project management, steps to create an effective BOM, key benefits, common challenges, and best practices to optimize its use.

At a Glance

  • A BOM lists all materials, components, and assemblies needed for a construction project, improving planning and cost control.
  • Different BOM types, such as Engineering, Construction, Service, and Multi-Level BOMs, serve specific purposes across project stages.
  • Using a BOM in project management enhances scheduling, procurement, collaboration, and risk management while ensuring compliance with Saudi regulations.
  • Creating an effective BOM involves gathering requirements, specifying quantities, organizing hierarchically, tracking revisions, and integrating supplier details.

What Is a Bill of Materials?

A Bill of Materials (BOM), known in Arabic as قائمة المواد, is a detailed list of all materials, components, and assemblies required to complete a construction project. In Saudi Arabia, where إدارة المشاريع plays a crucial role in major Vision 2030 developments, a well-prepared BOM ensures accuracy, quality, and compliance.

With the basics of a BOM clear, it’s helpful to look at the various types that serve specific roles in project management.

Types of Bill of Materials in Project Management

A BOM (قائمة المواد) plays different roles depending on your إدارة المشاريع (project management) stage. Understanding these BOM types helps business owners and IT teams improve إدارة البناء and reduce risks across large-scale Saudi projects.

Types of Bill of Materials in Project Management

1. Engineering BOM (EBOM)

Prepared by design teams, this BOM lists all materials, grades, quantities, and technical specifications based on the design documents. It ensures compliance with local regulations, such as the Saudi Building Code, and acts as a reference for technical decisions.

2. Manufacturing BOM (MBOM)

This BOM details items required to prefabricate or manufacture components before they arrive on-site. It includes modules, sub-assemblies, and individual elements, along with logistics information to streamline delivery and coordination.

3. Construction BOM

Focused on onsite work, this BOM covers foundation materials, structural components, electrical and plumbing items, and interior finishes. It guides procurement and helps business owners and IT teams track quantities, control costs, and maintain schedules.

4. Service BOM (SBOM)

Outlines spare parts, maintenance materials, and tools needed for future upkeep or repairs. This BOM is essential for planning facility management and ensuring the long-term performance of critical systems like HVAC, elevators, and security equipment.

5. Sales BOM

Useful for projects with customized solutions, this BOM details the finished product and all its components as per the client’s order. It simplifies communication with clients requesting specific features or variants.

6. Production BOM

Lists raw materials, quantities, sub-assemblies, and associated costs for the final output. It helps optimize batch production and monitor resource availability in multi-phase projects.

7. Assembly BOM

Provides details for assembling components from different suppliers, structured as single-level or multi-level depending on project complexity.

8. Configurable and Template BOMs

Configurable BOMs allow customization based on project or client needs, while Template BOMs enable you to quickly adapt modules or replicate similar projects efficiently.

9. Single-Level BOM

A straightforward list of all parts and their quantities, suitable for smaller construction projects. It is easy to manage but may lack detail for complex builds.

10. Multi-Level BOM

Captures assemblies, sub-assemblies, and the relationships between parts, making it ideal for larger or phased construction projects. It helps track dependencies, suppliers, and delivery timelines.

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Also read: ERP in Project Management: Driving Efficiency and Success

Choosing the right BOM type is crucial, but the real impact comes in how it supports project management, improves workflows, and streamlines operations.

How BOM Supports Project Management?

A BOM — قائمة المواد — is one of the most critical pillars of إدارة المشاريع in construction. It enhances planning accuracy, procurement efficiency, and risk mitigation, especially for Saudi companies managing multi-phase projects.

How BOM Supports Project Management?
  • Provides Material Clarity: A BOM lists every material and component required, ensuring your teams always know what is needed at each stage of the project.
  • Enables Accurate Cost Estimation: By detailing exact quantities and specifications, a BOM helps forecast expenses accurately, preventing overspending and unexpected costs.
  • Streamlines Procurement and Scheduling: With a clear BOM, your teams can order the right materials at the right time, reducing delays and ensuring timely delivery while aligning material availability with project timelines.
  • Enhances Communication and Collaboration: Serving as a single source of truth, a BOM improves coordination among contractors, suppliers, and site teams, reducing misunderstandings.
  • Facilitates Change and Quality Management: Updating the BOM when design changes occur allows teams to track impacts on resources and schedules while maintaining high-quality standards compliant with Saudi regulations.
  • Supports Inventory Management and Risk Reduction: A BOM helps maintain optimal stock levels and minimizes the chances of delays or rework due to missing materials.
  • Aids Reporting and Documentation: Maintaining a detailed BOM creates a documented history of materials, supporting audits, certifications, and future project planning.

The advantages of a well-structured BOM are clear, now let’s look at how to put one together for maximum efficiency

10 Steps to Create an Effective BOM in Project Management in Saudi Arabia

Creating a clear and organized BOM (قائمة المواد) is essential for efficient إدارة المشاريع in Saudi Arabia. This step-by-step guide ensures alignment with local standards, smooth procurement, and accurate budgeting. 

10 Steps to Create an Effective BOM in Project Management in Saudi Arabia

Step 1: Gather Complete Project Requirements

Start by collecting all project documentation, including engineering drawings, design specifications, procurement lists, and operational inputs. This ensures that every material, part, and resource is captured. 

For example, if you’re constructing a mid-size commercial building in Riyadh, include materials for HVAC, electrical wiring, structural steel, and finishing components from the very beginning.

Step 2: Organize Materials with Detailed Descriptions

Each item should have a clear description, including type, grade, dimensions, and technical specifications. Adding supplier preferences and local standards, such as Saudi Building Code compliance, simplifies sourcing and ensures materials meet regional requirements. This helps avoid delays caused by incompatible or substandard materials.

Step 3: Specify Quantities and Units Accurately

For every material, define exact quantities and measurement units, kilograms, meters, liters, or pieces. Accurate quantity information prevents over-ordering or shortages. 

For instance, knowing that 5,000 kg of structural steel is required rather than estimating prevents unnecessary stock and cost overruns.

Step 4: Create a Hierarchical Structure

Arrange the BOM from main assemblies to sub-assemblies and individual components. This top-down structure provides a clear workflow, making it easier for teams to follow construction sequences. 

For example, in a multi-story building, list structural foundations first, followed by beams, columns, and then finishing materials.

Step 5: Centralize Access and Integration

Store the BOM on a centralized, cloud-based platform, like HAL, that integrates with project management tools. This ensures all stakeholders, from procurement to site engineers, have access to the most updated information in real time. 

Using HAL simplifies collaboration across multiple locations, helping teams in different Saudi cities coordinate efficiently and avoid miscommunication.

Step 6: Track and Manage Revisions

Set clear rules for editing the BOM. Record every change, including who made it and when, to maintain accountability. This is especially important when design modifications occur mid-project, allowing teams to quickly adjust procurement and schedules without confusion.

Step 7: Include Supplier and Procurement Details

Add supplier names, sourcing channels, and preferred vendors for critical items. This helps your procurement team place orders promptly and ensures compliance with regional supply chain standards. For example, specifying local suppliers for concrete or steel can reduce lead times and shipping costs in Saudi Arabia.

Step 8: Estimate Costs and Set Budget References

Assign cost estimates for each material and assembly. This provides business owners and IT teams with a clear financial overview, helping them manage project budgets effectively. For instance, estimating costs for imported HVAC equipment versus locally sourced options can guide decision-making.

Step 9: Review and Validate with Stakeholders

Share the BOM with all key stakeholders, including project managers, procurement staff, and site engineers, for validation. Feedback helps identify missing items or potential issues, ensuring the BOM covers all departmental needs before execution begins.

Step 10: Continuously Update and Refine

Construction projects evolve, and so should your BOM. Regularly update quantities, add new materials, and incorporate feedback from site teams to reflect real-time changes. For example, if a design change increases the number of windows, updating the BOM immediately prevents procurement delays and cost miscalculations.

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Also read: Pre-Project Planning for Better Construction Outcomes

Even with a well-prepared BOM, construction projects can face challenges that require careful management and practical solutions.

Challenges in Managing BOM in Project Management with Solutions

Managing a BOM (قائمة المواد) becomes difficult when data is spread across teams or when إدارة المشاريع lacks standardization. Using centralized digital tools helps improve إدارة الموارد (resource management) and reduce errors common in Saudi construction projects.

Challenges in Managing BOM in Project Management with Solutions

1. Complexity of Large BOMs

Large projects involve numerous components, which can make the BOM overwhelming and prone to errors.

Solution: Use structured, hierarchical BOM formats and dedicated BOM management software to organize components clearly and track progress efficiently.

2. Frequent Changes and Updates

Design modifications or scope changes require constant BOM updates, which can cause confusion.

Solution: Implement version control and real-time update tools to keep the BOM current and maintain accurate records.

3. Collaboration and Communication Gaps

Sharing BOM information across teams, contractors, and suppliers can lead to miscommunication.

Solution: Use centralized, collaborative platforms so all stakeholders can access the latest BOM data and work from the same reference.

4. Inconsistent Part Numbering and Naming

Irregular naming conventions can result in duplicate entries or misunderstandings.

Solution: Standardize part numbers and naming conventions to maintain clarity and consistency throughout the project.

5. Data Silos and Integration Issues

BOM information spread across spreadsheets or disconnected systems reduces efficiency and increases errors.

Solution: Integrate BOM management tools with project management or ERP systems for seamless data flow and accurate tracking.

6. Supplier Coordination

Managing multiple suppliers and tracking deliveries can complicate procurement and timelines.

Solution: Centralize supplier information in your BOM system and automate notifications to ensure timely procurement and delivery.

Overcoming BOM challenges requires both strategy and the right technology. With HAL’s Project Management feature, you can centralize your data, track revisions in real time, and ensure seamless communication across teams.

These challenges are common in many Saudi construction and project-based companies. Here’s a real-world case study of a business that tackled them successfully.

Case Study: Jash Holding — Streamlining Operations and Cash Flow

Jash Holding, through Jash Technical Services (JTS), operates in Saudi Arabia across facilities management, contracting, logistics, and manufacturing, with 4,000+ employees across five companies.

The Challenge

Legacy systems caused fragmented data, slow workflows, and limited visibility into payroll, project mobilisation, cost accounting, and intercompany transactions, impacting efficiency and cash flow.

The Solution

Jash implemented HAL ERP, deploying modules for:

  • HRMS & Payroll: Automated contracts and leave management.
  • Project Costing & Mobilisation: Optimized staff deployment and profitability tracking.
  • Subcontracting & Procurement: Streamlined vendor and material management.
  • Intercompany Transactions: Automated internal billing with VAT.
  • Reporting & Stock Management: Unified dashboards and accurate site-level inventory.

Results

  • Unified workflows and eliminated data silos.
  • Faster reporting and tax filing.
  • Real-time operational and financial visibility.
  • Improved project cost control and billing accuracy.
  • Scalable system ready for future growth.

See why 200+ companies across Saudi Arabia trust HAL ERP to streamline operations and improve visibility. Get your personalized demo today.

Project Management Made Simple, and Agile with HAL

Running construction projects in Saudi Arabia can feel overwhelming. Between tight deadlines, multiple teams, and countless resources, it’s easy to get lost in spreadsheets or missed communications. HAL changes that. It simplifies project management by bringing clarity, simplicity, and agility to every task, so business owners, IT teams, and SMEs can focus on what really matters: getting projects done efficiently and on time.

Project Management Made Simple, and Agile with HAL

Key Features of HAL Project Management

  • Modern, Intuitive Interface: Navigate projects easily with an interface designed to be simple, elegant, and tailored to your workflow.
  • Organize Projects Clearly: Keep all tasks, resources, and timelines in one place for a complete view of your project.
  • Smart Scheduling: Visual calendars and task allocation make it easy to stay on top of deadlines and milestones.
  • Resource Planning and Forecasting: Anticipate workforce needs and align them with project demands to boost efficiency.
  • Seamless Team Coordination: Schedule teams effortlessly, factoring in holidays and availability to keep work flowing smoothly.
  • Proactive Planning for Profitability: Learn from past projects to forecast costs and timelines, helping you avoid surprises and improve profitability.
  • Actionable Visual Insights: Break projects into stages, assign tasks clearly, and monitor progress in real time.
  • Simplified Workflow: Transparent task assignments and collaborative stages make teamwork smoother and projects more efficient.
  • Dynamic Graph Views: Visualize project data with interactive graphs, filters, and grouping to get a complete perspective.
  • Quick Search and Filtering: Find tasks, resources, or information instantly, enabling faster decisions.
  • Effective Project Oversight: Monitor projects from multiple angles for better control, strategic planning, and on-time delivery.

Conclusion

A well-structured BOM — قائمة المواد — is essential for strong إدارة المشاريع in Saudi Arabia. With accurate material data, compliant specifications, and reliable supplier insights, companies can manage resources, reduce risks, and stay aligned with Saudi building standards.

To make BOM management even easier, HAL Project Management simplifies every stage of your project. Its intuitive platform helps you organize materials, track tasks, and forecast resources efficiently, saving time and avoiding errors. 

Join 100+ KSA construction and contracting companies managing their BOMs and projects with HAL. Schedule your free consultation now.

Frequently Asked Questions (FAQ)

1. What is the difference between single-level and multi-level BOM?

A single-level BOM lists all materials without showing relationships, ideal for small projects. A multi-level BOM shows assemblies and sub-assemblies, helping track dependencies in larger projects.

2. How can SMEs in Saudi Arabia use a BOM to improve procurement?

A BOM details quantities and specifications, making it easier to order materials on time, avoid delays, and manage costs effectively across different sites.

3. Can a BOM help control construction budgets?

Yes. By listing all materials and costs, a BOM allows you to forecast expenses, track spending, and avoid overspending on both local and imported materials.

5. How does a BOM ensure compliance with Saudi building standards?

A detailed BOM specifies materials, grades, and technical standards, ensuring all components meet regulations like the Saudi Building Code and supporting quality audits.

Mohammed Ali Khan
Mohammed Ali Khan
Mohammed Ali Khan is a seasoned ERP Implementation Consultant with over 100 successful projects across Saudi Arabia. With expertise across diverse industries, such as Construction/Contracting & Retail, he comes with a deep understanding of the local market and regional challenges in project implementation.