Compiling Construction Bills

Requirements for Preparing Construction bill

  • Have a list of all activities that are planned in the building

  • Must have tentative quantities of each activity that is required to be completed for the project

  • Should have an idea about the rate of each activity

  • Should know actual quantity executed at the site

  • Know the tax applicable and any surcharges

Steps for preparing Construction bill:

Bill is of two types: one is a running bill (commonly called RA bill), and the other is a final bill. In a final bill, all executed quantities are claimed, all deductibles are subtracted and earlier paid sum from previous RA bills is deducted. The net amount is then added with TAX etc.

Generally, we prepare RA bills only, hence giving procedure for the same.

  1. Prepare the BOQ (bill of quantities of each item) in Excel.

  2. Enter the actual quantity executed against each activity.

  3. check whether each actually executed quantity is lesser than the planned or budgeted quantity. (Generally, it is less however, if any executed quantity is more than mentioned in planned or budgeted BOQ) then before claiming the extra quantity of that particular activity over the budgeted quantity one may have to take a deviation approval, sometimes if deviated quantity is more the rate may get modified with mutual acceptance of contractor and client.

  4. Once the executed quantity is entered and rates are already known. Multiply both to obtain the amount claimable against each activity. Needless to say that the rate and quantity should be in the same units otherwise the amount of bill can be far high or far low.

  5. Do a grand total of claimable amounts.

  6. Make deductions for applicable items/ facilities as mentioned earlier.

  7. The net bill amount is obtained, add taxes, etc. as applicable.

  8. Your bill is ready.

  9. Before submitting it there are some formalities that vary with clients like certification by inspection officer regarding the satisfactory quality of work, mutual agreement of client’s and contractor’s representative upon measurements of activities claimed in the bill, attaching copy/ original purchase bill for cement- steel or other items, attaching royalty receipts of any mining resource used in a project, etc.

Conclusion

Hence, the Quantity surveyor manages all costs relating to building and civil engineering projects, from the initial calculations to the final figures.

Working either for the client or the contractor, in an office, or on-site involves from project start till end.




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