1. The document discusses measurement and payment processes for construction contracts. It defines key terms like measurement, quantities, bills of quantities, and different types of payments. 2. Interim or running account payments are made monthly based on work-in-progress measurements to provide contractors funding during the project. Final payment is made within 3 months of completion once the work passes inspection. 3. Measurements are recorded in a Measurement Book according to the contract specifications and are the basis for quantities and payments. Loss of a Measurement Book is a serious matter that requires investigation and approval from higher authorities.

1. Mr. Akash
Assistant Professor
Department of Civil Engineering
DCE Darbhanga
Module-3
Measurement
and Payment
Contract
Specification &
Estimation
Course Code- 011828P

2. Syllabus
 Measurement and Payment: Intermediate and running payment. Final payment,
Measurement completed work, Measurement book, Loss of measurement book.

3. Measurement and Payment
Measurement:
 The term 'measurement' covers both (I) 'taking-off' dimensions by scaling or reading from drawings and
entering them in a recognized form on specially ruled paper, called 'dimension paper' and (2) the actual
measurement of the work as executed on the site.
Quantity:
 The term 'quantities' refers to the estimated amounts of civil engineering work required in each
operation or activity, and together these items give the total requirements of the contract.
 The primary function of a 'bill of quantities' is to set down the various items of work in a logical
sequence and recognized manner, so that they may be readily priced by contractors. The bill of
quantities thus enables all contractors to tender on the same information. It also provides a good basis
for the valuation of 'variations' resulting from changes in design as the work proceeds
Payment:
 Monthly or interim payment as per term of contract will be paid to the contractor after preparing the bill
on the recorded measurements duly signed by the contractor after checking by the Engineer-in-charge
and test checking by higher authorities.
 Then bill will be further check up arithmetic by account section, rates and other irregularities if any in
accordance with the tender and put up the bill for final payment.

4. Intermediate /Running Account
Payment
 It is also known as running account payment.
 Under the terms of contract the contractor is to be paid monthly for work-in progress.
 These payments in intermediate stage of the work are made by way of advance adjustable in the final bill
which is drawn only after completion of work in all respects.
 For running bill payment contractor is required to submit bill to department in the prescribed form by a
fixed date.
 If he fails to submit bill, then Engineer-in-charge get the works measured and billed for which the
contractor has to accept.

5. Final Payment
 Final payment is to be made within the three months from the date of issue of certificate of final
completion.
 The process is same as in running account payment.
 There are some points which is specially to be looked into before final payment are as below:
 The work is complete as per specification and the site has been left clean.
 No damage has been caused to the other properties and no defect is apparent.
 A certificate of physical completion has been recorded in the relevant measurement book by the
Engineer-in-charge.
 The final checking of measurement recorded and rates as per contract documents.

6. Measurement for completed work
 The method of measurements are taken as per specification prescribed in contract document.
 If the method is not laid down, then any code of practice adopted by local bodies for the item of work
with the approval of Engineer-in-charge. The Indian standard method of measurement may also be
followed.
 It is in the contractor’s own interest that he should provide adequate facility for detailed measurements
for work done on the basis of which only the payment can be made to him.
 It is always excepted that he or his representative will remain present at the time of recording each set of
final measurement and will confirm the same by his acceptance to end with all leading to arbitration.
 If the contractor remain absent, when final measurement is recorded even after receipt of written notice
from the department, the measurement so recorded by the department officers become binding on him.

7. Measurement Book(M.B.)
 Measurement for all works done and supplies received in connection with a sanctioned estimate are
recorded in a special type of note Book known as measurement book.
 It is usually of size 15 cm X 10 cm.
 It contains, besides instructions how to write up, the columns for particular, detailed of actual
measurement in terms of number, length, breadth and the contents of area.
 The page are machine numbered.
 This book is the basis of all account of quantities for work done for which payment is made to
contractors.
 The entries in measurement book are made in continuous chain in a chronological order, no blank page
being left or turn out.
 At the end of each set of measurement, the officer recording them has to certify-” measured by me “ and
put his full signature with date.
 In case of final bill the corrections should be got confirmed by the person making the original entries
before authorising payment.

8. Loss of Measurement Book
 The loss of measurement book which is initial account documents is a serious matter and should be
guided in all possible manner.
 If, however, a book is lost, the facts of case should be reported immediately to the next higher authority
for orders and for sanction to its write off. The Chief Engineer is authorized to sanction the write off after
detailed investigation.