A running account (RA) bill is the periodic payment request a contractor submits for work completed in a billing period, usually a month. It is where the contract (the BOQ and rates), the site (the measurements) and the money (previous certificates, deductions, advances) meet. When any one of those three drifts out of line with the others, the result is a short-certified bill, a delayed payment and, eventually, a dispute.
Most of those disputes do not start with a large disagreement. They start with a unit mismatch, a cumulative quantity carried forward wrongly or an extra item billed before it was approved. This article sets out a repeatable reconciliation method for catching those errors before the bill leaves the contractor or before it is certified.
General information only. Payment mechanics, measurement rules and deduction rates are governed by your contract. Check yours before applying any step. This article is not legal or contractual advice.
1. Start by understanding the contract type
The reconciliation changes with the contract:
- Item-rate or remeasurable contracts: the BOQ quantities are estimates; payment follows the quantities actually executed and measured, at the contract rates. Bill quantities can legitimately differ from BOQ quantities.
- Lump sum contracts: payment typically follows percentage completion of defined components or milestones, not remeasured quantities. A BOQ may exist, but only to support valuation of progress and variations.
For FIDIC-based contracts, commentary on the 2017 forms describes a measurement clause (Clause 12) with notice for site measurement, and a payment clause (Clause 14) with a prescribed content for interim payment applications and detailed reasons where the Engineer's certificate differs. The wording and sub-clause numbers vary by edition and are often amended, so read your own contract rather than relying on this summary.
2. The four-way comparison
A sound reconciliation compares four figures for every BOQ item:
- Contract quantity from the BOQ or agreed variation.
- Measured quantity, to date, from signed measurement records.
- Billed quantity, to date, in the RA bill.
- Certified quantity, to date, from the last certificate.
The expected relationships are simple. Measured should support billed. Billed this period should equal cumulative billed minus previous cumulative billed. Cumulative billed should not fall below the last certified without an explanation. And, for remeasurable contracts, cumulative billed above the contract quantity should be explained by a documented variation or the contract's own remeasurement rule.
3. Where the measurement records come from
Educational material on Indian practice describes the Measurement Book (MB) as the primary record of executed work, from which running and final bills are prepared. Measurements are recorded once the work is ready for measurement and before it is covered or backfilled. They are taken jointly by the contractor's and client's or PMC's engineers, then signed and dated, with corrections initialled rather than overwritten. The same source refers to IS 1200 for measurement methods.
Whatever the local format (an MB, a joint measurement sheet, an electronic record), the principle is the same: each billed quantity should trace to a dated, signed measurement that references a drawing, a location and the BOQ item. If it does not, expect the item to be queried.
4. A seven-step reconciliation method
Step 1: Lock the baseline. Confirm the BOQ revision, rate schedule and approved variations that apply to this bill. Many disputes come from comparing against the wrong BOQ revision.
Step 2: Reconcile the carry-forward. Check that the "previous quantity" and "previous amount" columns match the last certified bill exactly, item by item. Differences here compound every month.
Step 3: Check units and item descriptions. Confirm the unit of measurement in the bill matches the BOQ (m, m2, m3, kg, tonne, nos., LS). Flag any item where the measured unit differs from the rate unit and convert explicitly.
Step 4: Trace this period's quantities to the measurements. For each item with a current quantity, find the signed record. Recompute a sample, then the largest-value items in full. Check dimensions, deductions for openings and repeated members, and drawing references.
Step 5: Check quantity against contract limits. Compare cumulative billed to the BOQ quantity. Where it exceeds, find the variation, instruction or contractual remeasurement rule that covers it. Where the item is not in the BOQ at all, treat it as an extra item for Step 6.
Step 6: Treat extra items and variations separately. Each extra item should reference an approved variation order, instruction or agreed valuation basis, with an agreed rate. Bill only what has been approved; hold the remainder in a pending register with the evidence.
Step 7: Rebuild the abstract of cost. Recalculate the gross value, then apply retention, recovery of any advances, secured advance for materials where applicable, statutory deductions and previous certified amounts, in the order the contract specifies. The InfraLens template describes an abstract with gross value of work, variations, materials at site, retention, previously certified amounts and deductions, but your own contract's payment clause governs the actual structure.
5. The common errors to look for
- Unit mismatches (area billed at a volume rate).
- Cumulative columns that do not equal previous plus current.
- Rate transcription errors against the contract schedule.
- Duplicate billing of the same work under two BOQ items.
- Billing for incomplete items at 100 percent when the BOQ item has defined stages.
- Extra items billed without approval, or at rates not agreed.
- Quantities above the BOQ with no remeasurement or variation basis.
- Materials on site claimed without the required invoices or documentation.
- Retention or deduction base calculated on the wrong amount.
- Formula errors in Excel: broken ranges, hard-coded numbers over formulas, hidden rows.
6. Worked example
Illustrative example, not a real project. The items, quantities and rates below are invented to show the method. They are not from any real bill, client or project, and the rates are not market benchmarks.
An RA bill for a hypothetical residential building claims four items. The reviewer checks each against the BOQ, measurements and certificates.
| Item | Unit | Claimed this bill | Verified this bill | Finding |
|---|---|---|---|---|
| PCC M15 foundation | m3 | 25.0 at 6,500 = 162,500 | 25.0 at 6,500 = 162,500 | Agrees; cumulative 105 of BOQ 120 m3 |
| Reinforcement steel | tonne | 18.0 at 72,000 = 1,296,000 | 14.5 at 72,000 = 1,044,000 | Bar bending schedule and measurement support 14.5 t; 3.5 t not yet fixed |
| Brickwork 230 mm wall | m3 | 40 at 5,800 = 232,000 | 9.2 at 5,800 = 53,360 | 40 is m2 of wall; converted at 0.23 m thickness = 9.2 m3 |
| Waterproofing, podium (not in BOQ) | m2 | 300 at 850 = 255,000 | 0 (pending) | No approved variation or agreed rate; hold in pending register |
Claimed total: 1,945,500. Verified total: 1,259,860. Difference: 685,640, made up of 252,000 (steel quantity), 178,640 (unit conversion) and 255,000 (unapproved extra item).
None of these is a dispute in itself. Each is a documentable correction, and a bill that arrives already corrected, with the pending item listed separately and the evidence attached, is far more likely to be certified without argument. (Retention and other deductions would then be applied to the verified gross, per the contract.)
7. Practices that prevent disputes
- Measure jointly and promptly. Record before the work is covered, with both parties' signatures and dates.
- Keep one BOQ-linked register that carries contract, measured, billed and certified quantities for each item, so the four-way comparison is a formula, not a rebuild each month.
- Maintain a variation and pending-items register with status, reference and rate agreed or not.
- Attach the evidence. The InfraLens annexure list is a useful model: measurement references, test reports, pour cards, invoices, joint inspection records, hindrance register extracts and variation approvals.
- Reconcile before submission, not after rejection. A reviewer who has to ask for the basis of each number slows payment; one who can open the trail does not.
- Version-control the bill workbook. Lock formulas, record who changed what and keep each submitted bill as a read-only copy.
8. Pre-submission checklist
- [ ] Contract type and payment clause confirmed
- [ ] BOQ revision and approved variations confirmed
- [ ] Previous quantity and amount columns tie to last certificate
- [ ] Units checked and converted where needed
- [ ] Every current quantity traced to a signed measurement record
- [ ] Cumulative quantity compared to contract quantity; exceptions explained
- [ ] Extra items billed only against approved variations at agreed rates
- [ ] Pending items listed separately with evidence
- [ ] Materials on site supported by required documents
- [ ] Deductions recalculated in the contract's order
- [ ] Workbook formulas checked and locked
Where RAYYAF fits
RAYYAF's BOQ and Billing Review is a scoped second check of a BOQ or a set of running bills against contract rates, supplied measurements and previous certification. The output is a findings sheet in Excel with items flagged and reasons, plus observations on variations and omissions. It is based on documents you provide: it does not include site measurement, contractual dispute opinions or certification of payment on a client's behalf. For regular monthly reporting, a dashboard setup or monthly planning support can keep the register current. Fees are confirmed in a written proposal.
About the author
Mohd Faisal Afatab is Founder and Principal Consultant of RAYYAF, with 14+ years in construction planning and project controls. His earlier work included BOQ preparation, billing and quantity surveying on high-rise residential development, and cost estimation, rate analysis and vendor billing across later roles. These are experiences from previous employment, not RAYYAF client engagements.
Sources
- InfraLens: Running Account (RA) Bill (educational template, beta)
- InfraLens: Measurement Book (MB)
- 39 Essex Chambers (P. Atkinson), FIDIC 2017 overview, IPBA Manila
Verification note: the InfraLens pages are secondary, educational material (one is marked beta) and the FIDIC points come from a conference paper, not the FIDIC text. Check against your contract and primary standards (such as IS 1200 and your own Conditions of Contract) before relying on them.
Frequently asked questions
What is the difference between a BOQ quantity and a billed quantity?
The BOQ quantity is the contract or estimated quantity for an item. The billed quantity is the work actually executed and measured to date. In a remeasurable contract the billed quantity can differ from the BOQ quantity, and the contract usually sets out how such differences are valued. In a lump sum contract, the position is different, so check the contract type first.
Why do RA bills need the measurement book or equivalent records?
Because they are the primary evidence for the quantities claimed. Educational material on Indian practice describes the Measurement Book as the primary record of executed work, from which running and final bills are prepared, and as key evidence if quantities are later disputed.
How should extra items that are not in the BOQ be billed?
Only against an approved variation or instruction with an agreed rate or agreed valuation basis, as the contract requires. Billing an unapproved extra item is one of the most common causes of a disputed bill.
Does RAYYAF certify bills for payment?
No. The BOQ and Billing Review checks quantities, rates and reconciliation against the documents you supply and delivers a findings sheet. It does not include site measurement, certification of payment on the client's behalf or contractual dispute opinions.
Sources
- InfraLens: Running Account (RA) Bill (educational template, beta)
- InfraLens: Measurement Book (MB)
- 39 Essex Chambers (P. Atkinson), FIDIC 2017 overview, IPBA Manila