RA bill glossary for contractors

The words on an Indian running account bill, defined in plain terms: measurement, BOQ and rates, advances and recoveries, tax, and getting paid.

Terms: 60
Covers: Measurement, rates, recoveries, tax
Written by: The Tatha Vastu billing team

Terms A to Z

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60 terms

0-9

26AS/AIS: Form 26AS, the annual tax credit statement, and the Annual Information Statement. A contractor matches income-tax TDS deducted on each bill to these statements to claim the credit.

A

Abstract of cost: The summary sheet of an RA bill: one line per BOQ item with its unit, rate, up-to-date, previous and this-bill quantities, and the amount. Each line refers back to the detailed measurement sheets.

B

Back-to-back: A subcontract whose terms mirror the main contract, so that payment, quantities and recoveries pass down from the client to the subcontractor. Back-to-back billing uses the same measurements for both bills.
BBS: Bar bending schedule: a list of reinforcement bars by mark, diameter, shape, number and cut length. Weight for billing is worked out from total length and the sectional weight per metre of each diameter.
BC: Bituminous concrete: the dense bituminous wearing course laid as the top layer of a road. It is measured in cum or by weight, as the contract provides, for the stretch where it is complete.
BOQ: Bill of quantities: the list of items of work in a contract, each with its description, unit, estimated quantity and rate. Every measurement and every RA bill line is tied to a BOQ item.

C

Centring and shuttering: Formwork: the temporary moulds and supports that hold concrete until it sets. Depending on the contract it is a separate item measured in sqm of contact area, or included in the concrete rate.
Chainage: Distance along the centre line of a road, pipeline or canal from a fixed start, written as kilometres plus metres, such as km 3+200. Linear works are measured and billed by chainage range.
cum: Cubic metre, the unit for volume items such as excavation, concrete, masonry and road layers. Written cum on Indian bills and BOQs.
Cumulative quantity: The total quantity of an item executed and measured from the start of the contract to date. On an RA bill, this bill's quantity is the cumulative quantity minus the previous certified quantity.

D

DBM: Dense bituminous macadam: a bituminous binder course laid over the base of a road. It is measured in cum or by weight, as the contract provides, with the density basis stated.
Defect liability period: The period after completion during which the contractor must rectify defects at its own cost. Retention and guarantees are usually released when it ends and no defects are pending.
Deviation: A difference between the quantity executed on an item and its BOQ quantity, or a change in the work ordered by the engineer. Contracts set how deviations are approved and when their rates may be revised.
Deviation statement: A statement listing, item by item, the BOQ quantity, the executed or expected quantity, the excess or saving, its amount and the reason. It supports approval of excess quantities before they are billed.
DSR: Delhi Schedule of Rates: the schedule of rates published by CPWD. It is used for CPWD estimates and is often the reference for rate analysis of extra items on contracts that adopt it.

E

E-invoice: A GST invoice registered on the government's Invoice Registration Portal, which returns an IRN and a signed QR code. It is mandatory for taxpayers above the notified aggregate turnover threshold.
Engineer-in-charge: The officer named in the contract to direct the work, record or check measurements and certify bills on the client's behalf. Tatha Vastu does not certify bills; the engineer-in-charge does.
Escalation: The common name for an increase in contract price paid under a price variation clause. Where the indices fall, the same clause can reduce the amount payable.
Executive engineer: The officer heading a division of CPWD, a state PWD or a similar department. On many works contracts the executive engineer is the engineer-in-charge and passes RA bills within delegated powers.
Extra item: An item of work not in the BOQ that the engineer orders during the contract. It is paid at a rate approved through rate analysis, and billed only with the sanction reference or as an agreed on-account payment.

F

Final bill: The last bill on a contract, prepared after completion. It closes cumulative quantities, settles extra items and part rates, reconciles advances and issued material, and fixes the retention to be released after the defect liability period.

G

GSB: Granular sub-base: the layer of graded granular material laid over the subgrade of a road, below the base course. It is usually measured in cum of compacted thickness by chainage range.
GST TDS: Tax deducted at source under section 51 of the CGST Act by government departments, local authorities and notified bodies when they pay a supplier. The supplier accepts the credit on the GST portal. Check the current notification for rate and threshold.

H

HSN/SAC: Classification codes used on GST invoices: HSN for goods and SAC (services accounting code) for services. Works contract services fall under SAC heading 9954.

I

Income-tax TDS: Income tax deducted by the client from payments to a contractor. It was under section 194C of the Income-tax Act, 1961; the Income-tax Act, 2025 applies from 1 April 2026 with renumbered sections. Confirm the section and rate with your CA.
IRN: Invoice reference number: the unique number the Invoice Registration Portal generates when an e-invoice is registered. It is printed on the invoice with the signed QR code.
IS 1200: The Indian Standard for method of measurement of building and civil engineering works, published by BIS in parts, one for each type of work. Contracts usually adopt the relevant part, sometimes with modifications.

L

L x B x D: Length times breadth times depth: the form in which most volume and area measurements are recorded, with the number of like members as a multiplier. Deductions are entered the same way and subtracted.
Labour welfare cess: The cess on the cost of construction that funds building workers' welfare boards, levied under the BOCW Welfare Cess Act, 1996 and now consolidated in the labour codes. It is often deducted from contractor bills. Check the current notification.
Lead and lift: Lead is the horizontal distance over which material or excavated earth is carried; lift is the vertical height it is raised. Item rates include a stated lead and lift, and extra is paid beyond it as the contract provides.
Liquidated damages: A pre-agreed amount payable by the contractor for delay in completion, as set in the contract. The competent authority decides whether and how much is levied after considering extensions of time.
LOA: Letter of acceptance: the client's written acceptance of a contractor's tender. With the tender documents it forms the contract, and it usually asks for the performance guarantee and the signing of the agreement.

M

Measurement book: The record of measurements of work done, item by item, with location, dimensions and date. On many government contracts the engineer-in-charge's measurement book (MB) is the official record on which bills are passed.
Mobilisation advance: An advance paid at the start of a contract to help the contractor set up the site, usually against a bank guarantee. It is recovered from RA bills on a schedule, often with interest, as the contract provides.
Mode of measurement: The rules a contract sets for measuring each item: units, what is included, which openings are deducted, rounding. It comes from the contract's specifications and the relevant part of IS 1200.
MSME Samadhaan: The government portal through which micro and small enterprises file delayed payment cases with the Micro and Small Enterprises Facilitation Council of their state.
MSMED Act: The Micro, Small and Medium Enterprises Development Act, 2006. Sections 15 and 16 require payment to micro and small suppliers within the agreed period, not over 45 days from acceptance, and compound interest at three times the bank rate on delay.
MT: Metric tonne, 1,000 kg. Used for steel and some bituminous items. Where a BOQ lists steel in kg and the store keeps it in MT, keep one unit in the record and convert only for display.
Muster roll: The register of workers' daily attendance on a site, used to pay wages and to show labour law compliance. Some departments ask for muster roll extracts with bills on labour-heavy works.

O

On-account payment: A payment made against work whose final quantity or rate is not yet settled, such as an extra item awaiting rate approval. The difference is adjusted on a later bill once the figure is fixed.

P

Part rate: A reduced rate paid for an item that is not yet complete, such as plaster awaiting curing. The balance rate is paid when the item is finished. The quantity is billed once; only the rate changes.
Performance guarantee: A bank guarantee the contractor furnishes after award, as security for performing the contract. It is returned when the conditions in the contract are met, often after the defect liability period.
Place of supply: The location that decides whether a supply is intra-state (CGST and SGST) or inter-state (IGST). For construction work on immovable property, it is generally where the property is located.
PMC: Project management consultant: a firm appointed by the owner to manage a project. On private and some public works, the PMC's billing team checks contractor bills and recommends quantities for certification.
Price variation: An adjustment of the contract price for changes in the cost of materials, labour and fuel, computed by a formula on published price indices. In CPWD contracts the clause is commonly known as clause 10CC.

R

RA bill: A running account bill: the periodic interim bill a contractor raises for work done so far on an item-rate or BOQ contract. Each RA bill shows up-to-date, previous and this-bill quantities, the value of work done, recoveries and net payable.
Rate analysis: The build-up of an item rate from materials, labour, equipment, overheads and profit. It is required to justify the rate of an extra or substituted item, usually starting from the schedule of rates or market rates.
Retention: A share of each bill held back by the client as security for the quality of the work. It is released after the defect liability period, on the terms of the contract. There is no standard percentage.
rmt: Running metre, the unit for linear items such as pipes, kerbs, skirting, railings and drains. Pipelines are usually billed in rmt by diameter and class.
Running account: The account kept between contractor and client through the life of a contract, where each interim payment is an advance against the final settlement. Quantities and amounts are cumulative, so every RA bill builds on the one before it.

S

Secured advance: An advance paid against materials brought to site for use in the work and not yet built in. It is adjusted on later bills as the material is consumed, on the terms the contract sets.
Security deposit: Money held by the client as security for due performance, collected from bills or paid upfront. On many contracts the retention deducted from RA bills is the security deposit.
SOR: Schedule of rates: a published list of item rates used by a department to prepare estimates and to price items. State PWDs and other bodies publish their own schedules, usually revised from time to time.
sqm: Square metre, the unit for area items such as plaster, flooring, painting, formwork and waterproofing. Written sqm on Indian bills and BOQs.
Substituted item: An item that replaces a BOQ item, for example a changed specification of flooring. Its rate is fixed as the contract provides, and the original item's quantity is reduced to match.

T

Thekedar: The everyday Hindi word for a contractor, used on Indian sites mostly for labour and petty contractors who supply gangs for masonry, shuttering, steel fixing or finishing, billed by measurement or by day.
TReDS: Trade Receivables electronic Discounting System: platforms authorised by the Reserve Bank where MSME suppliers sell invoices accepted by buyers to financiers, getting paid before the buyer's due date.

U

Udyam: Udyam registration: the online registration of micro, small and medium enterprises, which issues a Udyam registration number. It is the basis on which a contractor claims MSMED Act payment protection.

W

WMM: Wet mix macadam: a base course of graded crushed aggregate mixed with water in a plant, laid and compacted over the sub-base. It is usually measured in cum of compacted thickness.
Work order: The document by which a client awards a piece of work to a contractor, with its scope, BOQ, rates, time and terms. In Tatha Vastu, each work order holds its own BOQ, recoveries and bill format.