Final Account

The final account is a document that reflects the amount of money payable to the contractor after a construction project is complete. When all discrepancies regarding the works, resources, and expenses have been removed and the parties deem the project to be finished, the Final Account is prepared, agreed, and signed by both the contractor and its employer.

Although the final account is a straightforward document, its preparation may require additional measurements, calculations, and planning. Therefore, it is vital that you partner with competent and knowledgeable Quantity Surveyors, such as PEJA Surveying Ltd, to produce and complete adequate documentation. We prepare final accounts considering the specifics of your project, on-site measurements, as well as the clauses of the agreed-upon contract.

PEJA Surveying Final Account Solutions

When choosing PEJA Surveying Ltd as your Final Account consultant, you can rely on us to obtain the following:

  • A statement that indicates the final sum of the contract calculated based on the previously agreed sum and all the necessary adjustments.
  • Documentation compiled in accordance with the terms of your construction contract.
  • Measurement of all the work performed and the provision of adjustments in the event of a discrepancy with the estimate.
  • Assessment and reflection of claims, expenses, and damages in the final account.
  • Registration of fluctuations if they occur.
  • The contractor’s consent with the sum displayed in the final account is obtained in writing.

Final Account Best Practices

The final account is normally the responsibility of the Private Quantity Surveyor. However, the best practices in the industry envision the collaboration of Employer’s and Contractor’s Quantity Surveyors to agree on the final account.

The final account signed by both parties implies a complete and final settlement of all claims regarding the volume of work, the cost of materials and labour, expenditures, etc. In case of any adjustments, they must be specified as well. When the final account is settled, this will result in the issuance of the final account statement and allow the architect to provide the final certificate.

The main part of the final account is a list of works carried out and their cost in accordance with the agreed costs. If Quantity Surveyors have questions regarding the accuracy of any items, they may require measurements to be taken at the construction site.

Contract Sum Adjustment

The sum of the contract may be adjusted to either decrease or increase. All changes must be reflected in the final account, which finalises the amount due to a contractor.

Amounts deducted from the sum of the final account:

  • Work carried out by others, for example a nominated specialist contractor
  • Work not in accordance with contract (sub-standard)
  • Variations classified as omissions
  • Liquidated damages if the project is late
  • Changes to design (value engineering)

Amounts added to the final account:

  • Unforeseen items, for example obstructions in ground
  • Design changes by client
  • Items not included in the price at the time the tender price is finalised, and the contract is signed
  • Work performed against provisional sums and quantities indicated in the contract bills. Anything marked as “provisional” are costs and quantities that are subject to change.
  • Any amounts of direct losses and expenses arising due to circumstances that affect the timely execution of work
  • The amount of compensation for losses or damage due to damage or other incidents that the contractor may claim if the risks are insured by the employer

All possible adjustments are shown separately in the final account. The figures must indicate the net amount for each variation, as well as the amounts due to subcontractors and suppliers. When measurements are taken in order to prepare the final account, a representative of the contractor must be present. It ensures that he agrees with the figures received.

Final Account Production Time

Unless otherwise agreed, within 6 months after completion of construction the building contractor must provide the Architect or Quantity Surveyor a package of documents to prepare the final account. After the documents are submitted, the Architect or Quantity Surveyor has 3 months to draw up and provide it to the contractor.

Delays in preparing the final account entail additional expenses for the contractor. The employer, for its part, remains unaware of the full amount of its financial obligations. In this regard, the Architect and the Quantity Surveyor, who issue the final account, are responsible for complying with deadlines. At the same time, it is in the interests of the contractor to promptly provide the accounts of subcontractors and suppliers, documentation on the measurements, adjustments, and prices, as well as all the essential supporting data.

Thanks to the vast experience in the field of construction, PEJA Surveying Ltd prepares final accounts in a professional and timely manner. Preparing final statements is time-consuming and stressful work, so why don’t you leave to PEJA Surveying Ltd?