Plain-English definitions of the construction and GST terms Indian builders use daily: BOQ, RA bill, retention, GSTR-2B, ITC, work order and more.
A bar bending schedule (BBS) is a table listing every reinforcement bar in an RCC member — its bar mark, diameter, shape, number of bars, cutting length and weight — so steel can be cut, bent and ordered accurately. Read more
A Bill of Quantities (BOQ) is an itemised list of every material, labour and work item a construction project needs, with the unit, quantity and rate of each, so the project’s cost can be estimated, tendered and controlled. Read more
Budget vs actual is the comparison of what a project was planned to cost with what has actually been spent, item by item, so overruns are spotted while there is still time to act. Read more
A concrete mix ratio gives the proportions of cement, sand and coarse aggregate in a concrete grade. In nominal mixes, M20 is 1 : 1.5 : 3, M15 is 1 : 2 : 4 and M10 is 1 : 3 : 6 by volume. Read more
Construction cost per square foot is the total construction cost of a building divided by its built-up area in square feet. It is the quickest way to compare budgets, quotes and projects of different sizes. Read more
Contingency is an amount added to a construction budget, usually a percentage of the estimated cost, to cover unforeseen work, price rises and small design changes that cannot be priced in advance. Read more
A cost overrun is the amount by which a project’s actual cost exceeds its approved budget, measured as actual cost minus budget, and often shown as a percentage of the budget. Read more
The defect liability period (DLP) is the time after a project is completed, frequently 12 months and fixed by the contract, during which the contractor must repair any defects that appear at their own cost. Read more
An Earnest Money Deposit (EMD) is a sum a bidder deposits with a tender to show they are serious, which is returned to unsuccessful bidders and adjusted against the security deposit for the winner, but forfeited if the winner backs out. Read more
A final bill is the last bill a contractor submits after the work is completed, which re-measures the total work done, adjusts everything paid through earlier RA bills and advances, and shows the balance payable or recoverable. Read more
A GST purchase register is a record of every purchase invoice a business receives, with the supplier’s GSTIN, invoice number and date, taxable value and the CGST, SGST or IGST charged. It is the basis for claiming input tax credit and reconciling with the GST portal. Read more
GSTR-2B is a monthly statement of input tax credit that the GST portal generates for each registered taxpayer. It lists the purchase invoices your suppliers have reported in their returns and shows how much credit is available to claim. Read more
Input tax credit (ITC) is the GST a business pays on its purchases, which it can set off against the GST it owes on its own sales, so tax is effectively paid only on the value it adds. Read more
A measurement book (MB) is the official record of measurements of work done and materials received on a construction project. Entries are taken on site and signed by the engineer, and they are the basis for paying contractors’ bills. Read more
A mobilisation advance is an upfront payment from the client to the contractor, made at the start of a contract so the contractor can set up the site, bring in labour and equipment and buy initial materials, and recovered later from the contractor’s running bills. Read more
A muster roll is the daily attendance register of workers on a construction site. It records who worked each day, their trade and wage rate, and it is the basis for calculating and paying labour wages. Read more
A price escalation clause is a contract term that adjusts the contract price when the cost of materials, labour or fuel rises or falls beyond an agreed limit during the contract period, usually by reference to published price indices. Read more
A provisional sum is an amount included in a BOQ or contract for work or items whose details are not yet known at the time of tender, which is later adjusted up or down to the actual cost. Read more
Rate analysis is the build-up of the unit rate for one item of work from its parts, material, labour and machinery for a unit quantity, plus an allowance for the contractor’s overheads and profit. Read more
Retention money is a percentage held back from each contractor bill — typically 5% to 10%, as set in the contract — and released after the work is complete and the defect liability period ends, as security against defects and incomplete work. Read more
A running account (RA) bill is an interim bill a contractor raises during a project for the work completed since the previous bill, based on measured quantities, so the contractor is paid in stages rather than only at the end. Read more
A Schedule of Rates (SOR) is a published list of standard unit rates for items of construction work, used to prepare estimates and BOQs; the CPWD Delhi Schedule of Rates (DSR) is the best-known one in India, and state PWDs publish their own. Read more
A site imprest is a fixed cash float given to the site engineer or supervisor to pay small, day-to-day site expenses, which is topped up to its original amount against vouchers when it runs low. Read more
Vendor reconciliation is matching your own record of a vendor’s bills and payments with the vendor’s statement of account, so that both sides agree on what has been billed, paid and is still due. Read more
A work order is a written instruction from a client or main contractor to a contractor or sub-contractor to carry out specified work at agreed rates, within a stated time and on stated terms. Read more
ARC PEM keeps BOQ budgets, contractor bills, labour wages, pending payments and the GST purchase register together for every project.
Join 30+ architecture and construction firms already using ARC PEM to track budgets, manage vendors, and generate professional reports — without a single spreadsheet.