Other things to consider when preparing a final account
Link between the final account and the final certificate
The statement of final account generally has no status under the contract but it does bring about a sense of finality to the negotiations between the contract administrator or quantity surveyor and the contractor. The signing and exchange of such a document signifies that there is an agreement by the parties to the total of the monies due to the contractor and that the final account figure represents the full and final settlement of all claims and the like.
The final certificate is a strict requirement to be issued under the contract. The effect of the issue of the final certificate is defined under the terms of the contract (JCT clause 1.10). It signifies that the works and any defects have been made good and are now complete.
The final certificate does not give conclusive proof that the works etc are in strict compliance with any other requirements under the contract but the final certificate does provide conclusive evidence that the contract sum, as adjusted by the various clauses within the contract, has been agreed between the contract administrator or quantity surveyor and the contractor.
The final certificate shall state at what value the final account total has been agreed and what payments on account have been such the residual monies due to the contractor (or possibly even monies due to the client if found to have been over paid). Clause 4.15 of the JCT contract provides the detailed supporting information and readers are recommended to fully appraise themselves of the finite detail.
Figure 8 is an example of how a final certificate might be structured.
Ward and Mellor |
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Final Certificate |
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Issued by: |
P Ward |
Job Reference: |
CT/2005.1305 |
Employer: address:
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Springfield District Council |
Certificate no: |
13 FINAL |
Contractor: address:
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Albion Developments |
Issue Date: |
May 13th 2009 |
Works: situated at:
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Springfield 6th Form College - New Student Centre |
Contract dated: |
December 5th 2007 |
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This Final Certificate is issued under the terms of the above-mentioned Contract. |
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The Contract Sum adjusted as necessary is £5,018,967.00 |
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Total of Interim Valuations 1-12 inclusive is £4,925,687.00 |
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The difference between the above-stated amounts is £93,280.00 |
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I / We hereby certify the sum of |
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Ninety three thousand two hundred and eighty pounds only |
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as a balance due: |
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* Delete as Appropriate |
* to the Contractor from the Employer |
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* to the Employer from the Contractor |
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All amounts are exclusive of VAT |
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To be signed by or for the issuer named above |
Signed |
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The terms of the Contract provide that, subject to any amounts properly deductible by the Employer, the said balance shall be a debt payable from one to the other from the |
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(1) Delete as Appropriate. |
(1) 14th /21st /28th day after the date of this Certificate |
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The Contractor has given notice that the rate of VAT chargeable on the supply of goods and services to which the Contract relates is 15% |
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15% of the amount certified above is £13,992.00 |
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Total of balance due and VAT amount (for information) £............... This is not a Tax Invoice |
Distribution: |
Original to: |
Duplicate to: |
Copies to: |
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Employer |
Contractor |
Q.S. |
Clerk of Works |
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Consultants |
File |
Table 8: Example structure of a final certificate