- 2077 Chaitra · 2 marks
Running bill vs final bill
Short answer
A running bill is a partial payment during construction for work done to date, with retention deducted and advance recovered in instalments. A final bill is the last bill after completion, covering the whole work, with full settlement, release of retention, and detailed checking with completion documents.
Differentiate between running bill and final bill.
A running bill is a bill for payment of part of the work done up to a date, during the progress of work. A final bill is the last bill after the work is fully completed.
| Point | Running bill | Final bill |
|---|---|---|
| Time | During construction, at stages | After completion and handover |
| Work covered | Part of work done to date | Whole work, including the last portion |
| Number | Several (RA bill 1, 2, 3 ...) | Only one |
| Retention | 5% retained from each bill | Retention released after the defect liability period |
| Advance | Recovered in instalments | Balance recovered fully |
| Documents | MB, abstract, previous payment details | Completion certificate, as-built drawings, no-claim certificate |
| Checking | Normal checking | Detailed checking, reconciliation, audit |
| Nature of payment | Payment on account | Full and final settlement |
✓ Answer checked by Claude Opus 5.5 (high effort)
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