Final Accounts

Final Accounts 3/22/17, 09:53
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Cost Advice & Feasibility Studies

(/cost-advice-feasibility-studies)
Budget Estimating & Cost Planning

(/budget-estimating-cost-planning) Final Accounts
SC Quantity Surveyors can deal with the final account preparation, submission &
Procurement (/procurement)
subsequent agreement on behalf of consultants such as architects including both
private and public sector clients. Our Final Accounts services which we provide to
Tender & Contract Documentation consultants and clients ensures the following:-
(/tender-contract-documentation)
Clear statement showing the contract sum followed by all necessary
Contractor Selection (/contractor- adjustments to that sum
selection-tender-reporting) Prepared in accordance with the terms and conditions of the relevant
contract eg. JCT standard building contract
All items fully assessed and adjustments made for variations, provisional
Cost Control (/cost-control)
sums, re-measured works etc
Work carried out on a dayworks basis is included
Valuations of Work (/valuations-of-
Loss and expense claims / reimbursement accurately assessed and included
work)
Fluctuations where applicable are included
Confirmation of the contractor's agreement to final account figure is obtained in writing
Financial Statements (/financial-
Architect issues final certificate for final payment to main contractor
statements)
Final Accounts (/final-account)

Final Account Preparation Procedure
SC Quantity Surveyors prepare the final account in the manner that is best suited for the particular project with the original contrac
sum as the starting point. An important part of the contractor's quantity surveyor's work is the agreement of the final account. Unde
Contractors the terms of the contract the private quantity surveyor is responsible for its preparation, but in reality the best approach is for both th
client's quantity surveyor and the contractor's quantity surveyor to work together to produce an agreed account.
Estimating and Tendering
(/estimating-and-tendering) A Final Account in construction contracts is the agreed statement of the amount of money to be paid at the end of a building contrac
by the employer to the contractor. A final account brings about a sense of finality to the negotiations leading up to the agreement of th
Bills of Quantities (/bills-of- Final Account between the parties to the contract.
quantities) SC Quantity Surveyors ensures that in accordance with common practice both the Employer (or the Employers representative) and th
Contractor sign the Final Account Statement to signify that the Final Account figure represents the full and final settlement of all claim
Variations (/variations) etc. The settlement of the final account negotiations between the contractor, and the architect or quantity surveyor will in due cours
trigger the issue of the final account statement and ultimately, enable the architect to issue the final certificate.
Valuations (/valuations)
Under the terms and conditions of the contract the contractor is to provide the architect or quantity surveyor with all document
necessary for the final account preparation not later than 6 months after practical completion. Within 3 months of receipt of thes
Final Accounts (/final-accounts)
documents the architect or quantity surveyor is to prepare and ascertain the final account sum and send this to the contractor.
Clients The bulk of the final account will generally consist of measured work priced at the original billed rates. If the contractor's quantit
surveyor has reason to doubt the accuracy of any of the original billed items, he can make a request to the quantity surveyor for wor
Quantity Surveying & Estimating concerned to be measured on-site.
(/quantity-surveying-estimating)
The adjustment of the contract sum in the final account normally falls under several relevant items, although the quantity surveyor mus
have regard to all the matters listed in the standard form of contract and conditions. The contract conditions tabulates all the matter
that shall be dealt with in the final account in order to adjust the contract sum in accordance with the conditions.
Sums to be deducted:
1. Prime cost sums and amounts in respect of named subcontractors and associated contractor's profit;
2. Provisional sums and the value of work for which approximate quantities are included in contract bills;
3. Variations that are omissions;
4. Amounts allowable to the employer under the fluctuations clauses;
5. Any other amount that is required by the contract to be deducted from the contract sum.
Sums to be added:
1. The total amounts of nominated subcontracts finally adjusted in accordance with the relevant subcontract conditions;
2. Where the contractor has tendered for work that was to have been preformed by a nominated subcontractor and his tender ha
been accepted, the amount of the tender suitably adjusted;
3. Any amounts due to nominated suppliers, including cash discounts of 5 per cent, but excluding VAT;
4. The contractor's profit on the above amounts 1,2 & 3;
5. Any amounts payable by the employer relating to statutory fees and charges, opening up and testing, royalties and patent rights
and insurances;
6. The value of work carried out against provisional sums or approximate quantities included in the contract bills;
7. Any amounts payable by the employer to the contractor by way of reimbursement for direct loss/and or expense arising from
matters materially aecting the regular progress of the works;
8. Any amount expended by the contractor as a result of loss or damage by fire or other perils where the risks are insured by th
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Final Accounts 3/22/17, 09:53
employer and the contractor is entitled to reimbursement;

9. Any amount payable to the contractor under the fluctuations clauses;
10. Any other amount that is required by the contract to be added to the contract sum.
All relevant items must be shown separately in the final account, and the nett amount of each variation and amounts due to eac
nominated subcontractor and nominated supplier listed. When preparing the final account the quantity surveyor should give th
contractor's quantity surveyor the opportunity to be present when measurements and details are taken or recorded, so that th
document is prepared in full liaison with the contractor.
Delays in the settlement of the final account represent additional cost to the contractor and in the majority of cases the employer i
anxious to know his ultimate financial commitment. The architect and the quantity surveyor have a contractual responsibility under th
contract to keep to the date stipulated in the contract for completion of the final account and the contractor should produce ever
assistance in the prompt provision of subcontractors and suppliers accounts, agreement of measurement and prices, and the supply o
all necessary supporting data.
London Oce Birmingham Oce SC Quantity Surveyors

86-90 Paul Street 674 Pershore Road Construction Cost Consultants
London Selly Park
Estimating & Tendering
EC2A 4NE Birmingham
B29 7NX
T: 020 3322 6069 SC Quantity Surveyors 2007-2015
M: 0788 110 3677
http://www.scquantitysurveyors.com/final-account Page 2 of 2

Final Accounts

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Final Accounts 3/22/17, 09:53

Consultants ! Hits: 31149

Cost Advice & Feasibility Studies

Budget Estimating & Cost Planning

Final Accounts (/final-account)

employer and the contractor is entitled to reimbursement;

London Oce Birmingham Oce SC Quantity Surveyors

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