A final account document within construction contains all the financial aspects of the project, as well as any documentation in relation to costs. As interim payments are likely to have been made prior to the Final Account being prepared, these will need to be included and deducted from the total outstanding amount, as appropriate. Similarly, any variations which have not yet been covered by interim payments will need to be added to the Final Account.
Often, the presentation of the Final Account and subsequent Final Account Statement will have been included in the original contract. Typically, construction contracts require contractors to submit the relevant information to the appropriate personnel within six months of completion. This ensures that the appointed expert, such as a qualified quantity surveyor – Bhangals Construction Consultants, can prepare the Final Account prior to the formal completion of the project.
What’s included in a Construction Final Account Document?
Although a final account may sound fairly straightforward, it can require significant planning and research. The work carried out may need to be measured, for example, and then billed for at the previously agreed price set out in the contract. This requires an innate understanding of the industry, as well as the skills necessary to make such valuations, and should only be carried out by suitably qualified personnel, such as quantity surveyors.
In addition to this, a Final Account may also include:
- Valuation of contractors work
- Value of work which was estimated in prior agreements
- Tender adjustments
- Profits the contractor may have accrued via suppliers and subcontractors
- Outstanding statutory charges, testing and opening up fees, patents, insurances and royalties
- Amounts and prime cost sums in relation to each contractor and subcontractor
- Allowable amounts under fluctuation clauses
Preparing the Final Account in accordance with the contract
Whilst some details are included in the Final Account as standard, any final account should also reflect the contract it relates to. There may be specific clauses governing variation orders, for example, and this could have an impact on what amounts are included in the Final Account.
Due to this, it’s essential that your chosen quantity surveyor is familiar with the contract and has the opportunity to examine each clause in detail. Whilst it isn’t always necessary for a surveyor to visit a site for the sole purpose of preparing the Final Account, it is often a practicable way of conducting the relevant measurements. In such cases, representatives of the contractor and the client should be invited to attend, so that they can verify the accuracy of the measurements taken.
An incomplete or inaccurate Final Account can lead to unnecessary delays and disputes, so it’s vital that any final account is prepared with attention to detail, accuracy and expertise. With seasoned quantity surveyors ready to assist with all elements of Final Account preparation, Bhangals Construction Consultants can provide final account services tailored to your needs.