Example structure for a final account
Provisional sums
The project comprises a £5m educational building. The scheme was tendered using fully measured bills of quantities and the contract placed using a JCT 2008 Standard Form.
There are 5 headings that must be addressed within the account (see Table 1):
- the original/provisional contract sum;
- any omissions of provisional sums and provisional work and any adjustments against these sums;
- all additions and omissions as a result of varied work properly instructed by the contract administrator;
- all additions and omissions as a result of the issue by the contract administrator of revised drawings and/or specifications resulting in agreed re-measures of quantities; and
- the addition of money due as a result of loss and/or expense incurred due to the granting of extensions of time.
Additionally, if the project is large then the effect of fluctuations/increased cost and the effects of any liquidated damages applications must be considered.
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Omit |
Add |
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£ |
£ |
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Adjustment of preliminaries provisional sums (PS) |
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1 |
a) Omit PS for new incoming electrical main as AI No. 2 |
5,000.00 |
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b) Add new electrical intake in accordance with attached quotation and instructed in AI No. 2 |
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4,300.00 |
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c) Add main contractor's on-costs as declared for special attendance at 5% |
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215.00 |
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2 |
AI No.3 |
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a) Omit PS for dayworks labour |
2,500.00 |
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b) Omit PS for main contractor's percentage on costs @ 150% |
3,750.00 |
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c) Omit PS for dayworks material |
1,000.00 |
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d) Omit PS for main contractor's percentage on costs @ 20% |
200.00 |
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e) Omit PS for dayworks plan |
500.00 |
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f) Omit PS for main contractors percentage on costs @ 20% |
100.00 |
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3 |
Add daywork account as attached (example only) |
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6,850.00 |
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4 |
Omit general contingency sum - AI 3 |
25,000.00 |
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Adjustment of General Provisional Sums |
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5 |
Omit provisional measurement for breaking out any obstructions in the foundations: 5m2 concrete @ £45/m2 |
225.00 |
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Add breaking out concrete obstructions as measured on site: 6m2 concrete @ £45/m2 |
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270.00 |
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Add backfilling void, with MOT type 1 hardcore as directed by clerk of work 6m2 @ £65/m2 – (rate as used elsewhere in tender) |
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390.00 |
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6 |
Omit provisional sum for mechanical and electrical engineering services as AI No.3 |
120,000.00 |
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7 |
Add final account for works by Messrs Smith and Taylor Services as attached (example only) |
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137,250.00 |
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158,275.00 |
149,275.00 |
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(149,275.00) |
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TOTAL OMIT TO FINAL ACCOUNT MAIN SUMMARY |
9,000.00 |
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Table 3: Provisional sums and provisional work account
Table 3 shows how within 1 relatively simple section of a final account, there are other 'sub-accounts' which in this example are the Daywork account and the M&E services account.
This situation can be further complicated, especially with regards to the M&E services accounts because there will almost certainly be provisional sums, variations, re-measures and the like, which have to be considered within this sub-account.
This again reinforces the need to adopt best practice and ensure the account is commenced as early as possible and the compilation of information is clearly ordered and structured.