---
title: "Running bill vs final bill"
subject: "Construction Management"
chapter: 8
key: "semester_8/construction_management:running-vs-final-bill"
source: https://www.bctengineer.com/q/semester_8/construction_management/running-vs-final-bill
site: BCT Engineering
---

# Running bill vs final bill

Construction Management · Chapter 8: Site Management

- Asked in: 2077 Chaitra, 2 marks
- Video: [How RA Bill and Final Bill Works on Construction Site | Billing Engineer Interview Guide](https://www.youtube.com/watch?v=ihu7MZ2EE84) — The Institute of Construction Managment 
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/running-vs-final-bill
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-8

## Question

Differentiate between running bill and 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.

## Answer

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 |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What does a running bill cover?
   A. Whole work after completion
   B. Only retention money
   C. Part of the work done up to a date during progress
   D. Only extra items
   Answer: C. A running bill pays for part of the work done to date, during progress. (Key point: Definition)

2. What happens to retention money in the final bill?
   A. It is forfeited
   B. It is released after the defect liability period
   C. It is increased to 10%
   D. It is paid in the first running bill
   Answer: B. About 5% is retained from running bills and released after the defect liability period. (Key point: Retention)

3. How many final bills are there for a contract?
   A. One
   B. Several, numbered RA 1, 2, 3
   C. One per month
   D. One per item
   Answer: A. There are several running bills but only one final bill, giving full and final settlement. (Key point: Number of bills)

## Related in Construction Management

- [Planned vs unplanned maintenance; maintenance plan](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aplanned-vs-unplanned-maintenance) — Construction Management, chapter 9
- [Cost vs value; factors affecting valuation](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acost-vs-value-factors) — Construction Management, chapter 13

## Related in other subjects

- [Contractor asks supervisor to prepare running bill](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Acontractor-running-bill-bribe) — Engineering Professional Practice, chapter 7