Civil work quotation format

Last reviewed: October 2026

What makes a civil work quotation different

The general rules for any quotation (numbering, validity, GST shown but not payable, acceptance by purchase order) are on the main quotation format page. Civil work adds four problems a supply quotation does not have:

• The quantity is not known exactly. It is taken off drawings and will change on site. So you quote a rate per unit of work and are paid on what is measured, not on the quoted total.
• Each rate hides a specification. "RCC" means nothing without the grade (M20, M25), what it includes (shuttering, curing, hoisting) and what it excludes (steel). Two quotes with the same rate can be for different work.
• The job runs for months. Steel, cement and labour prices move, so the quote must say what happens to rates over time and how often you bill.
• Money is held back. Clients hold retention against defects and pay advances against guarantees. If those terms are not in the quote, they will be in the client's work order, on the client's terms.

How to fill in this civil work quotation

1. Your firm and the clientEnter your firm's name, address and GSTIN, and the client with their GSTIN. Put the site address in the client block: the site decides the state GST is charged in.
2. One line per BOQ itemDescribe the work with its specification, set the quantity and the unit (cum, sqm, rmt, MT), and enter your rate. Add the SAC code (9954) to the description if the client wants it.
3. GST rateUse 18% for works contracts and construction services for private clients. Use a concessional rate only where the notification covers your work and client, and note the entry in the terms.
4. Notes and termsIn notes, state the drawings and enquiry the quote is based on and that quantities are estimated. In terms, write validity, measurement, bill cycle, advance, retention, defect liability and price variation.
5. Sign in to issue and trackCreating and editing here is free. Signing in numbers the quotation in your series and, once accepted, carries the same items into running bills; issuing and sending need the Sales module.

Item-rate, lump-sum or labour-only: choosing the basis

Per sq ft quotes for houses are common and easy to compare, and most disputes come from them: whether the area is carpet or built-up, whether the staircase head room, parapet and sunshades count, and what tiles, fittings and paint the rate assumes. If you quote per sq ft, attach a specification schedule and say how the area is measured.

Example: an item-rate quotation for an RCC frame and masonry

Shivneri Constructions in Pune quotes Acme Warehousing for the structure of a G+1 office block at Acme's Chakan site: excavation, PCC, RCC with shuttering, reinforcement, masonry and internal plaster, all with material. The site and both GSTINs are in Maharashtra, so GST is CGST + SGST. For construction services the place of supply is where the property is, so a contractor from another state working on this site would still charge CGST + SGST of Maharashtra, after registering there.

1. Scope line: which building and which package of work the rates are for.
2. Site location: it fixes the place of supply, and so CGST + SGST of that state.
3. BOQ items in the order of construction, each with its unit in brackets.
4. SAC 9954 (construction services); 995421 covers general construction of buildings.
5. GST on the works contract at 18%, split into CGST and SGST for a site in your own state.
6. Indicative total: the contract value moves with measured quantities.
7. Money terms: measurement, mobilisation advance, retention, price variation.
8. Signature: tenders and work orders usually need it on every page.

The same work quoted labour-only

If Acme buys cement, steel, sand and bricks itself, Shivneri quotes labour rates for the same items. The rates are much lower, the quantities are identical, and the quote must say who stores, issues and accounts for the client's material (wastage limits are the usual dispute).

How to structure the BOQ

Clients compare quotes line by line, so follow the sequence of construction and the client's numbering if they sent a BOQ with the enquiry. Never re-order or merge a client's items: fill their quantities and add your rates.

Group items under section headings (earthwork, concrete, steel, masonry, plaster, flooring, waterproofing, finishes) with a subtotal for each, and finish with a summary of sections. Build each rate from material, labour, equipment, wastage and your overheads and profit; keep that rate analysis on file, because a client who negotiates hard, or asks for an extra item later, will want to see it.

Units of measurement used in civil quotations

Conversions to keep in the quote if the client thinks in feet: 1 sqm = 10.764 sq ft; 1 cum = 35.315 cft; 1 rmt = 3.281 ft. Do not mix units for the same item between quote and bill: if plaster is quoted in sqm it must be measured and billed in sqm.

Public works in India are measured to IS 1200 (Bureau of Indian Standards, method of measurement of building and civil engineering works), which sets out, part by part, how each kind of work is measured and what is deducted. Writing "measurement as per IS 1200" in your terms settles most arguments before they start.

GST on civil work: works contract rules

A contract to build, repair or renovate immovable property in which goods pass to the client as part of the work is a works contract (section 2(119) of the CGST Act). It is treated as a supply of services, taxed on the full value of material and labour together. You do not split the quote into "material at the goods rate" and "labour at 18%".

Can the client claim input tax credit?

Usually not, for a building. Section 17(5)(c) of the CGST Act blocks input tax credit on works contract services for construction of immovable property, other than plant and machinery, unless the client is itself a works contractor using the service for its own works contract. Factory owners and developers know this; a client who quotes your price "plus GST" against a competitor's will be comparing the full amount including GST, because for them the GST is a cost.

Tax deducted from your bills

• GST TDS: government departments, local authorities and notified public bodies deduct 2% (1% CGST + 1% SGST, or 2% IGST) from payments under a contract worth more than ₹2,50,000 (section 51). You claim it in your electronic cash ledger.
• Income-tax TDS: payments to contractors are subject to TDS, long at 1% for individuals and HUFs and 2% for others. From 1 April 2026 it is deducted under the Income-tax Act, 2025, so check the current rate table, and give the client your PAN so the higher no-PAN rate does not apply.

Terms a civil work quotation should state

The terms box of the editor above prints these under the totals. Keep them short and numbered; a client's work order will usually repeat them, and anything it changes is a counter-offer you should check before signing.

From quotation to running bills

1. Work orderThe client accepts with a work order or letter of acceptance quoting your BOQ rates. Check its quantities, rates and terms against your quotation line by line.
2. MeasureAt each billing stage, measure the work done jointly with the client's engineer and record it in the measurement book: item number, location, dimensions and quantity.
3. RA billBill cumulative quantity x quoted rate, less the previous bill, less recovery of the advance and retention. GST is charged on the gross value of work in each bill. The construction bill format shows a running bill laid out this way.
4. Final billOn completion, the final bill settles all measured quantities and extra items. Retention is released at the end of the defect liability period.

Estimate vs BOQ vs quotation vs RA bill

For a rough figure before drawings exist, use the estimate format and say it is not an offer. For a US-style construction quote in dollars, see the construction quote template.

Mistakes that cost contractors money

• A per sq ft rate with no specification schedule. The client remembers the rate and forgets the tiles you assumed.
• "Including shuttering" or "excluding steel" left unsaid. Say what every rate includes; the client will read it in their favour.
• Quoting GST at the material rates. A works contract is taxed as one service at 18% (or the concessional rate that applies); splitting it on the invoice does not change the rate.
• No price variation clause on a job longer than six months. Cement and steel can move by more than your margin.
• Retention with no release date. Tie it to the end of the defect liability period, or to a bank guarantee.
• No method for extra items. Agree how they will be rated before they are executed.
• Forgetting TDS in your cash flow. 2% GST TDS on government work and income-tax TDS on every bill come off what reaches your bank.

Key terms

BOQ (bill of quantities)

A numbered list of items of work with specifications, units and quantities, priced by the contractor.

Item-rate contract

A contract paid at quoted unit rates on the quantities actually measured.

Works contract

A contract for building or repairing immovable property in which goods pass to the client; taxed as a service under GST.

RA bill (running account bill)

An interim bill for work measured to date, less previous bills and recoveries.

Mobilisation advance

An advance at the start of a contract, usually against a bank guarantee, recovered from running bills.

Retention

A share of each bill held by the client as security until the defect liability period ends.

Defect liability period (DLP)

The period after completion during which the contractor repairs defects at its own cost.

Questions people ask