Glossary · also called Running Account Bill, Running bill, Interim payment certificate, IPC
What is an RA Bill (Running Account Bill)?
RA bill: An RA bill (running account bill) is an interim bill a contractor raises during a construction project for work completed so far. It records cumulative quantities against the contract BOQ, claims the value of work done since the previous bill, and is paid after the client certifies it and deducts retention, advance recovery and taxes.
Definition
Most construction contracts in India are paid in stages rather than at completion. Each stage is a running account (RA) bill — numbered RA 1, RA 2 and so on, with the last one usually called the final bill. On international or FIDIC-style contracts the equivalent document is often called an interim payment certificate.
An RA bill is measured against the contract BOQ. The contractor claims, the client’s engineer or consultant checks and certifies, and the client pays the certified amount less deductions.
How it works
RA bills are usually prepared cumulatively. An example, with illustrative numbers only, for one item at a contract rate of ₹8,900 per cum:
| Quantity (cum) | Amount (₹) | |
|---|---|---|
| Executed to date (RA 4) | 160 | 14,24,000 |
| Billed up to RA 3 | 120 | 10,68,000 |
| This bill | 40 | 3,56,000 |
From the certified gross value of the bill, typical deductions include:
- Retention money, often a percentage of each bill.
- Recovery of the mobilisation advance.
- Liquidated damages, where delay is attributable to the contractor.
- Income-tax TDS and, for certain government clients, GST TDS.
A GST tax invoice is then raised for the certified work. Check with your tax advisor how GST applies to retention and advances on your contracts.
Common mistakes
- Entering only this period’s quantity, so an error is never corrected in later bills.
- Billing beyond the BOQ for extra work that has no approved change order.
- Invoicing the claim instead of the certified amount.
- Losing track of retention across several projects.
In Zaptiz
Zaptiz Construction records cumulative measurement against the contract BOQ, warns before you over-bill, applies retention, advance recovery and LDs from the award terms, and raises the GST invoice from the certified bill. The RA Bill Drafting agent can prepare the next bill’s quantities as a draft for the QS to review. See RA bill software.