Example structure for a final account
Summary and statement of final account
|
|
|
|
Omit |
|
Add |
|
1) |
Contract sum |
|
|
|
5,000,000.00 |
|
2) |
Adjustment of provisional sums account |
|
9,000.00 |
|
|
|
3) |
Adjustment of architects instructions account |
|
|
|
16,500.00 |
|
4) |
Adjustment of revised drawings account |
|
|
|
1,467.00 |
|
5) |
Addition of loss and/or expense claim for monies due to contractor as ascertained by CA |
|
|
|
10,000.00 |
|
|
|
£ |
9,000.00 |
£ |
5,027,967.00 |
|
|
|
|
|
|
(9,000.00) |
|
|
TOTAL OF FINAL ACCOUNT |
|
|
£ |
5,018,967.00 |
Table 6: Final account summary
The above summary shows how the contract administrator or quantity surveyor has calculated the final adjustment of the contract sum. This summary and all supporting information and re-measures must then be sent back to the contractor for his comment and agreement.
At this stage, the contractor may well not agree with the submissions of the contract administrator or quantity surveyor and it will therefore be a period of a negotiation between the 2 parties that will ultimately result in the agreement of the final account. Many financial issues are a matter of opinion and costs will be negotiated between the parties until a balance or agreement can be reached.
Once an agreement is reached between the parties, the contract administrator or quantity surveyor shall send to the contractor a statement of the final account. This statement should be signed in duplicate.
Statement of final account
Table 7 is an example of a statement of final account. There are no fixed parameters under the JCT contract as to how such a document should be presented.
There is indeed only a requirement for the contract administrator to issue a statement of all adjustments as defined under contract clause 4.5 and this could of course comprise of the final summary as shown in Table 6. Best practice however requires that there is separate statement which both parties (or their consultants) sign as their agreement to the adjusted contract sum: i.e. the final account.
STATEMENT OF FINAL ACCOUNT
CLIENT: Springfield District Council
ADDRESS: Evergreen Terrace, Springfield , SF1
WORKS: Springfield 6th Form College - New Student Centre
|
|
|
|
Omit |
|
Add |
|
1) |
Contract sum |
|
|
|
5,000,000.00 |
|
2) |
Adjustment of provisional sums account |
|
9,000.00 |
|
|
|
3) |
Adjustment of architects instructions account |
|
|
|
16,500.00 |
|
4) |
Adjustment of revised drawings account |
|
|
|
1,467.00 |
|
5) |
Addition of loss and/or expense claim for monies due to contractor as ascertained by CA |
|
|
|
10,000.00 |
|
|
|
£ |
9,000.00 |
£ |
5,027,967.00 |
|
|
|
|
|
|
(9,000.00) |
|
|
TOTAL OF AGREED FINAL ACCOUNT ( Excluding VAT) |
|
|
£ |
5,018,967.00 |
|
Signed: |
Signed: |
|
Date: |
Date:............................................ |
|
QS/Contract Administrator: |
Contractor: |
|
Ward and Mellor Chartered Surveyors |
Albion Developments |
Table 7: Statement of final account