Can any adjustments be made to a construction contract final account?

There is no requirement to follow a set format when creating a final account for a construction contract other than those set out by the agreement itself. If the contract does not specify the form and content of a final account, the account should clearly set out the sum due and the basis upon which it is calculated.

The final account will refer to the original form of contract, which dictates how the financial information is collated, who is responsible and any relevant timescales. It is commonplace to see phrases like ‘in full and final settlement’ that attempt to protect the statement from challenge or change. The parties should carefully read the contract to ensure it fully aligns with their intentions.

Even with a final account, the employer can deduct delay damages — also called liquidated damages — from the final payment certificate under the Construction Act provisions for pay less notices.