BOQ vs RA bill: how running bills work in construction
Contractors hear BOQ and RA bill every day, but the link between them is where money is won or lost. This post explains each term and how they connect.
What is a BOQ?
A Bill of Quantities lists each item of work in a contract with its unit, quantity and rate. The total of quantity times rate across all items is the contract value. It is the reference every later bill is measured against.
What is an RA bill?
A Running Account (RA) bill claims payment for work done so far, usually monthly. For each BOQ item it records the quantity completed to date, subtracts what was billed in earlier RA bills, and bills the difference at the contract rate.
How they connect
- Each RA bill line points to a BOQ item, so quantities cannot be billed that are not in the contract.
- Cumulative quantity is tracked so you never bill the same work twice.
- Variations and extra items are added with approval and flow into the next bill.
- Retention is deducted per the contract and released later; deductions such as advances are recovered.
Where things go wrong
- BOQ revisions kept in separate files, so the current contract value is unclear.
- Measurements not linked to BOQ items, causing disputes at certification.
- Retention tracked on paper and forgotten at release time.
Keeping BOQ, measurement and billing in one system avoids these problems.
Frequently asked questions
Is the process the same for subcontractors?
Largely yes: a subcontract BOQ and subcontractor RA bills follow the same pattern, with advances and back-charges recovered from each bill.
Related resources
BOQ Calculator
Free online BOQ calculator: add items with unit, quantity and rate, get amounts, sub-total, GST and grand total, and export the bill of quantities to CSV.
Use calculator → Free toolConstruction Profit Calculator
Free construction project profit calculator: contract value vs material, labour, subcontract, equipment and overheads, with margin %, cost breakdown and retention impact.
Use calculator → Free toolProject Cost Calculator
Free project cost estimator: direct cost, overheads, contingency, target margin and GST to arrive at a quote value for construction and contracting jobs.
Use calculator → GuideHow to track construction project profitability during execution
How Indian contractors can track construction project profit while work is in progress: BOQ, cost codes, RA bills vs cost, material reconciliation, forecast at completion.
Read guide →