Running Account (RA) Bill in Construction: Meaning, Purpose and Practical Use in Large Projects
In construction projects, money does not move the way it does in most other businesses. You do not complete the entire job and then raise a single bill. Projects stretch across months or years, costs start from day one, and execution happens in phases. Because of this, payments must also move in phases. This is where the Running Account Bill, commonly known as the RA Bill, becomes important. An RA Bill is a progress-based billing document used in construction contracts. It allows a contractor to claim payment for the portion of work completed during a specific period while also maintaining a cumulative record of total work done under the contract. It is not just a request for payment. It is a structured financial record tied directly to measurable site progress. What Exactly Is an RA Bill? At its core, an RA Bill represents certified progress. When a project begins, a contract is signed with predefined rates, quantities, and terms. As work progresses on site, quantities are measu...