How do we prepare for a final account in a construction contract?

Preparations for the final account begin early and normally continue throughout the contract period. The starting point is the statements prepared by the quantity surveyor for each party as the work progresses.

Issues may first get raised with the interim applications. But all too often, the parties save up additional claims or deductions until the end of the contract, which often makes final accounts difficult.

As a preliminary to the final account, the contract administrator will ensure that all the contract instructions have been carried out and there are no omissions. This acts as a framework within which other variables are included, such as time extensions, delays, adjustment for materials, and set-off or contra charges.

Contractors must also ensure that variations and additional work are captured in the account and that the supply chain submits accurate costs to them as part of the process.