How to Prepare a Running Bill from a BOQ in Nepal

A running bill is an interim claim for the work completed so far on a contract. It is how a contractor's cash flow works, and a badly prepared bill means delayed payment, disputes with the client's engineer and extra working capital borrowed at a cost. This guide describes a practical process for preparing running bills from a BOQ. Specific contract terms, certification steps and rules for public contracts vary, so follow your own agreement and the client's procedures.

Step 1: keep the BOQ as the master list

Every item you bill must trace back to a BOQ item or an approved variation. Hold the BOQ with item number, description, unit, contract quantity and rate. Do not rename items in the bill, because the client's engineer will compare line by line with the contract. If your BOQ is in Excel, make sure each row has a consistent unit and no merged cells, so it can be imported into software cleanly.

Step 2: measure work as it is completed

Do not wait until bill day to measure. Record measurements weekly or after each pour or course of work, with date, location, dimensions and the BOQ item they belong to. Have the client's representative or consultant sign measurements where your contract requires it. Signed measurements are the strongest protection you have against later disputes about quantities.

Step 3: calculate current, previous and cumulative quantity

For each item, the bill shows three quantities: executed up to the previous bill, executed in this period and cumulative to date. The bill amount for the period is the current quantity multiplied by the contract rate. Software does this automatically and avoids the classic error of billing last month's work twice.

Column	Meaning
Contract quantity	Total quantity in the BOQ
Previous quantity	Billed in earlier running bills
Current quantity	Measured since the last bill
Cumulative quantity	Previous plus current
Balance quantity	Contract quantity less cumulative

Step 4: handle variations and extra items

Work outside the BOQ happens on every job: an extra wall, a changed finish, a deeper foundation. Get the instruction in writing, record the date and the person who instructed it, and agree a rate before the work is done if you can. Add these as separate variation items in the bill, clearly marked. Verbal instructions that were never recorded are the most common reason contractors cannot claim for extra work.

Step 5: apply deductions and additions

Depending on your contract, the bill may include deductions such as advance recovery, retention and TDS, and additions such as VAT at 13% where applicable. Treatment differs from contract to contract, so ask your accountant and confirm current requirements with the Inland Revenue Department. Set up the deduction rules once, from your contract, and let them apply on every bill so that no one forgets a line.

Step 6: check before you submit

• Every quantity matches a signed measurement.
• No item is billed beyond its contract quantity without an approved variation.
• Rates match the contract exactly.
• Arithmetic and totals are correct, including carry-forward from the earlier bill.
• Supporting documents, such as test reports or photographs required by the client, are attached.

Step 7: track the bill after submission

Record the submission date and who received it. Note when it was certified, what was changed and when payment arrived. A bill that sits uncertified for weeks needs a polite reminder with the date trail in hand. A simple pending-bills list showing amount, days outstanding and next action gives the owner a clear view of cash still to come. Over time, you will learn how long different clients really take to pay and can plan working capital accordingly.

Dealing with disputed quantities

Sooner or later the client's engineer will question a quantity. Respond with evidence, not heat. Bring the signed measurement sheet, the drawing reference and photographs taken at the time. If the difference comes from a genuine disagreement over how a measurement rule applies, ask for the rule in writing and agree a joint re-measurement. Bill the undisputed part promptly so that a quarrel over one line does not hold up the entire payment. Record the disputed item in a separate list with its value and the date raised, and review the list monthly until it is settled.

Keep a bill register

Maintain a simple register of every running bill: number, period, gross amount, deductions, net amount, submission date, certification date and payment date. This register answers the questions an owner asks most often. How much is the client holding? How long do they take? Which bills are overdue? It also helps with bank discussions, since lenders respond better to a clear account of receivables than to a verbal estimate.

Common errors that delay payment

• Billing quantities that were never measured.
• Using an outdated rate after a negotiated change.
• Submitting without the client representative's signature on measurement.
• Forgetting to carry forward the previous bill's totals.
• Mixing variation work into ordinary BOQ lines.

Where software helps

The software holds the BOQ, stores measurements, calculates the three quantity columns, applies your deduction rules and produces a print in the agreed format. It also keeps previous bills together so that every new bill ties to earlier ones. WebsNP sets this up in construction management software around your own format. Message us at +977 9846280400 with a sample bill to see it in a demo.

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