RA bill
What is a running account (RA) bill?
A running account (RA) bill is a progress bill raised periodically for the work completed on a construction contract up to that point. It is cumulative: each RA bill states the total value of work done to date, then deducts what was already paid and a retention amount, leaving the sum now due. RA bills let contractors get paid as work progresses rather than only at the end.
How an RA bill is built
The quantities executed to date are measured against the BOQ, valued at the contract rates, and totalled. Previous payments are subtracted, along with a retention percentage held back as security, giving the net amount payable on this bill.
What retention is for
Retention is a small percentage (often 5 to 10%) withheld from each RA bill and released after completion and the defect-liability period. It protects the client if defects appear, and it is tracked cumulatively across all RA bills.
Why RA bills matter
For a contractor, RA bills keep cash flowing through a long project. For the client, they tie payment to measured, certified progress, so money follows work actually done.
How Fortera does it
Fortera prepares running-account bills with retention and security-deposit tracking, linked to measured progress, and runs a three-way match before any payment clears.
Related questions
A little more detail.
- How is retention released?
- Retention is typically released in stages: part on project completion and the balance after the defect-liability period, once any defects are made good. Fortera tracks the withheld amount cumulatively so nothing is lost.
- How is an RA bill different from a final bill?
- RA bills are interim and cumulative, raised during the work. The final bill is the last one, reconciling all quantities, releasing outstanding retention, and closing the account.