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Answers · Updated 18 October 2026 · By Gowtham Sai, BRANDSWOT Consultancy

Interior and design-and-build terms: straight answers

Short, plain-English definitions of the contract, billing and site terms used in interior and design-and-build projects in India.

Questions on this page

  1. What is a BOQ in interior projects?
  2. What is a snag list?
  3. What is a change order in interior projects?
  4. What is a variation order in construction?
  5. What is a works contract under GST?
  6. What is milestone billing?
  7. What is a design brief in interior design?
  8. What is a moodboard in interior design?
  9. What is a turnkey interior project?
  10. What is an office fit-out?
  11. What is carcass and shutter in modular furniture?
  12. What is a handover certificate?
  13. What is retention money in contracts?
  14. What is a mobilisation advance?
  15. What is a running bill in construction?
  16. What is a measurement book?
  17. What is a daily progress report?
  18. What is a punch list in construction?
  19. What is design freeze in interior projects?
  20. What is a procurement schedule?
  21. What is lead time for interior materials?
  22. What is a defect liability period?
  23. What is a completion certificate?
  24. What is a site measurement sheet?

What is a BOQ in interior projects?

A BOQ, or bill of quantities, is a line-by-line list of every item in an interior project, with its description, unit, quantity, rate and amount. It covers work such as false ceilings, wardrobes, painting, electrical points and flooring. A clear BOQ lets clients compare quotes fairly and makes changes easy to price. The D&B Operating System builds quotes and BOQs from your own rate cards.

What is a snag list?

A snag list is a list of small defects and unfinished items found during the final inspection of an interior project, such as scratches, misaligned shutters, paint touch-ups or loose handles. The contractor fixes each snag before handover, and the client signs off once the list is closed. Walking the site room by room with the client keeps the list complete and avoids arguments later.

What is a change order in interior projects?

A change order is a written document that records a change to the agreed scope of an interior project, with its added or reduced cost and time impact, signed by the client before the work is done. Typical examples are an extra wardrobe, a different laminate or a moved electrical point. Change orders prevent disputes about extra billing at the end of the project.

What is a variation order in construction?

A variation order is the construction term for a formal instruction that changes the original contract scope by adding, removing or altering work, with the agreed change in cost and time. It works like a change order in interior projects. Variations should be issued in writing and priced before execution, so that the final bill matches what the client actually approved.

What is a works contract under GST?

Under GST, a works contract is a contract for building, construction, fabrication, installation, fitting out, renovation, repair or similar work on immovable property where goods are transferred as part of the work. GST law treats it as a supply of services. Turnkey interior fit-outs can fall within this definition. Rates and input tax credit rules depend on the type of work and client, so confirm the treatment with a chartered accountant.

What is milestone billing?

Milestone billing is a payment method where the client pays agreed percentages of the project value as set stages are completed, such as booking, design approval, material delivery, installation and handover. It keeps cash flowing in step with costs and gives clients clear checkpoints. Each milestone and its percentage belongs in the agreement. The D&B Operating System raises milestone invoices with GST that match the agreement.

What is a design brief in interior design?

A design brief is a written summary of what the client wants from an interior project: rooms in scope, how they will be used, style preferences, must-haves, budget range, timeline and any constraints. It is agreed at the start and guides every design decision. A signed brief protects both sides when tastes shift later, because every change can be checked against it.

What is a moodboard in interior design?

A moodboard is a visual collage of colours, materials, textures, furniture and reference images that shows the intended look and feel of a space before detailed design begins. Designers use it to agree on style with the client early, which saves revisions later. It can be a digital board or a physical board with real samples of laminates, fabrics and tiles.

What is a turnkey interior project?

A turnkey interior project is one where a single firm handles everything from design to execution and handover, so the client receives a ready-to-use space. The firm manages drawings, materials, vendors, labour and site supervision under one contract. Clients get one point of responsibility, while the firm takes on more risk around cost, quality and timeline.

What is an office fit-out?

An office fit-out is the work of making a commercial space ready for use: partitions, false ceilings, flooring, lighting, electrical and data cabling, air conditioning, workstations, meeting rooms and pantries. A fit-out from a bare shell covers most of these, while a refurbishment updates an existing office. Fit-outs run on tight timelines and need careful coordination of many trades.

What is carcass and shutter in modular furniture?

In modular furniture, the carcass is the box structure of a cabinet or wardrobe, made of the sides, top, bottom, back and shelves, usually from plywood, MDF or particle board. The shutter is the door or front panel you see, finished in laminate, acrylic, veneer, lacquer or glass. Quotes often price carcass and shutter materials separately, so clients can upgrade one without the other.

What is a handover certificate?

A handover certificate is a document signed by the client and the contractor confirming that the completed project has been handed over, usually after the snag list is closed. It records the date, the scope delivered, keys and manuals handed over and any pending items. It often marks the start of the defect liability period and triggers the final payment.

What is retention money in contracts?

Retention money is a small percentage of each bill that the client holds back until the end of the defect liability period, as security that the contractor will fix defects. The percentage and release terms are set in the contract. It is common in construction and commercial fit-outs. Contractors should track retention due separately, so it is claimed and released on time.

What is a mobilisation advance?

A mobilisation advance is an upfront payment a client makes to a contractor at the start of a project to cover set-up costs, such as moving labour, tools and materials to site and placing early orders. It is usually recovered by deducting a share from later running bills. The amount and the recovery terms are agreed in the contract before work begins.

What is a running bill in construction?

A running bill, or running account (RA) bill, is an interim invoice a contractor raises during a project for work completed so far, based on measured quantities at agreed rates. Each running bill shows work done to date, earlier bills and the amount now due, after deducting any retention or advance recovery. The final bill settles the balance at completion.

What is a measurement book?

A measurement book is a record of the actual quantities of work done on site, such as square feet of ceiling, running feet of skirting or the number of electrical points, signed by the contractor and the client's representative. It is the basis for running bills and the final bill. It is standard on government and large commercial projects, and useful for interior firms too.

What is a daily progress report?

A daily progress report is a short record of what happened on site each day: work done, labour present, materials received, issues, photos and the plan for the next day. Site supervisors send it to the project manager, often with a summary for the client. It builds a clear history of the project. The D&B Operating System lets supervisors post updates and photos from a phone.

What is a punch list in construction?

A punch list is the construction term for a list of incomplete or defective work items that must be fixed before a project is accepted as complete. It is the same idea as a snag list in interior projects. The client or consultant walks the site, records each item with its location, and signs off once every item is closed.

What is design freeze in interior projects?

Design freeze is the point when the client signs off the final drawings, materials and finishes, after which changes are accepted only through a priced change order. It lets the firm order materials and start production with confidence. Fixing a clear design freeze date in the agreement reduces rework, delays and disputes during execution.

What is a procurement schedule?

A procurement schedule is a plan listing every material and item a project needs, with its order date, supplier, lead time and required on-site date. It is worked backwards from the project timeline so nothing arrives late. Long-lead items such as modular units, imported tiles and custom furniture are ordered first. A good schedule prevents idle labour and site delays.

What is lead time for interior materials?

Lead time is the time between placing an order for a material or item and receiving it on site. Stock items like paint and standard hardware may be available almost at once, while factory-made modular units, custom furniture and imported finishes can take several weeks. Knowing lead times lets you order early enough to keep the project timeline on track.

What is a defect liability period?

A defect liability period is a fixed period after handover during which the contractor must fix defects caused by faulty work or materials at no extra cost. Its length is set in the contract. Retention money is often released at the end of this period. Normal wear and tear, or damage caused by the client, is usually excluded.

What is a completion certificate?

In interior contracts, a completion certificate is a document confirming that the contracted work is finished as per scope, usually issued by the client or consultant after inspection. It supports the final bill and is often asked for as proof of past work in tenders. A building completion certificate issued by a local authority for new construction is a different, statutory document.

What is a site measurement sheet?

A site measurement sheet records the exact dimensions of a space before design starts: room sizes, ceiling heights, door and window positions, beams, columns, and electrical and plumbing points, often with photos. Accurate measurements are the basis for drawings, the BOQ and factory orders. The D&B Operating System saves site visit measurements and photos to the project, so the whole team works from the same data.

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