Practical guides for Indian construction commercial

A ready cumulative RA-bill layout — item, unit, BOQ rate, cumulative & previous quantity, this-bill value, retention, advance recovery, escalation, TDS and net payable.

A standard MB abstract sheet — BOQ item, description, chainage, nos × L × B × D, computed quantity and remarks — ready to record and abstract site measurements.

A BOQ template with a rate-analysis build-up — item, unit, quantity, and the material / labour / machinery / lead & lift / overhead components that build the rate.

The priced list of every item a contract will deliver — description, unit, quantity, rate and amount per line, usually organised by a work-breakdown structure.

The statutory record of work actually executed and measured on site, abstracted into quantities against each BOQ item. The evidence that underpins every bill.

A periodic, cumulative interim payment bill for work in progress — total work done to date, less what previous bills already certified, less deductions.

A percentage withheld from each bill (commonly 5–10%, up to a ceiling) as security, released after the defect-liability period.

The period after completion during which the contractor must rectify defects; retention is typically released at the end of it.

A contractual increase in rates to reflect movement in input prices (cement, steel, POL, labour) against published indices, computed on the period's work.

An interest-bearing advance paid early in the contract to fund mobilisation, recovered from subsequent RA bills, usually pro-rata to progress.

An advance against approved materials brought to site, recovered as those materials are consumed in measured work.

A published schedule of basic input rates and standard rate analyses — CPWD's DSR for buildings, MoRTH's SOR for roads/bridges, and state PWD equivalents.

The build-up of a unit rate from its inputs — materials, labour, machinery, carriage (lead & lift) — plus overheads and profit.

Carriage components in a rate: lead is the horizontal distance a material is transported (charged in km slabs); lift is the vertical component.

A rate derived for an item not covered by the contract BOQ (usually introduced by a variation), built up by a fresh rate analysis and agreed before billing.

Execution of a BOQ item beyond (or below) its tendered quantity, handled under the contract's deviation clause.

An instructed change to the scope of work, which may create new items, new rates and time/cost entitlements.

An extension of the contractual completion date for delay caused by employer-risk events, giving relief from liquidated damages for that period.

A pre-agreed sum payable by the contractor for late completion, per the contract — the exposure an EOT claim is designed to remove.

Under GST, a contract for construction/erection/repair etc. of immovable property involving transfer of goods — taxed as a single supply of service.

Reconciliation of the Purchase Order, the Goods Receipt Note (GRN) and the supplier invoice before an invoice is passed for payment.

The structure against which actual project costs (material, labour, plant, subcontract) are booked and compared to budget for cost-to-complete / EAC.

The forecast total cost of the project at completion, derived from actuals to date plus the estimated cost to complete.