How to Write an RA Bill for a Construction Site
Running Account bills explained — what to include, how to calculate retention, and how to get paid faster.
May 2026 · By Rajni Sharma
What is an RA bill
An RA (Running Account) bill is a progressive invoice a contractor raises for work completed up to a certain date — not the whole project. The client pays in stages as work progresses, keeping cash flow alive on both sides.
What every RA bill must include
Contract value and work order reference, description of work done in this period, cumulative work done to date, percentage completion, gross amount due, less retention (typically 5-10%), less any advances recovered, net amount payable. GST is applied on the net amount.
How to calculate retention
Retention is the amount the client holds back until project completion — usually 5% of each RA bill. Track cumulative retention separately. It's released after completion and a defect liability period (typically 12 months).
Common mistakes that delay payment
Missing the work order number, wrong GST calculation (contractors charge 18% GST for most civil work), no measurement book reference, and not matching the client's work completion certificate. Fix these before submitting — each round-trip costs you weeks.
Track it on a sheet
AgenticVani Contractor CRM tracks every RA bill — contract value, bills raised, amounts received, retention balance and outstanding. One view tells you the health of every project.
Everything here comes ready-made inside AgenticVani — one-time ₹499, no monthly fee.
See Contractor CRM →