Level 3 - Final Account Flashcards
What is a Final Account?
The final account is the conclusion of the contract sum
(including all necessary adjustments) and signifies the
agreed amount that the employer will pay the contractor.
What is the time period for the Contractor submitting the Final Account?
If the Contractor does not submit the Final Statement within 3 months of Practical Completion, the Employer may on on or after the expiry of that period give the Contractor notice that unless that statement is submitted within 2 months from the dat of notice, may himself issue a final statement in lieu of that from the Contractor.
What is a rolling final account?
ensures all cost adjustments and instructions are agreed as the project progresses
How would you prepare a final account?
I would have a rolling final account to agree contract changes on an on-going basis with the contractor.
Following Pracital Completion the Contractor submits the final statement to the employer and all supporting documentation
When PC is issued I arrange a Final account meeting with the contractor to close our any late instructions / instructions yet to be agreed
When is the due date / final date for payment for Final Account?
Due date is then whatever occurs last:
• End of rectification period
• Date stated in the notice of completion of making good
• Date of submission of Contractors final account or employers FA if issued first
Date for final payment is 28 days from the due date
What is the final account refered to in the JCT contracts?
DB - refered to as Employer’s Final Statement
Timescales for final account DB?
After PC contractor has 3 months to submit ‘Final Statement’
If not received in 3 months - Employer can give notice the the contractor that unless that statement is submitted in 2 months from the notice the employer can issue the final statement in lieu of the contractors
2 months following the notice of the employer the employer can then issue their on statement
Who prepares the final account?
Contractor has 3 months from PC to provide final account and all substantiation
If not received employer may give notice that unless received after 2 months from notice employer can submit their own final statement
Do you include Liquidated damages in Final Account?
No
What are variable costs?
Sums within the contract that are subject to change: Provisional sums Approximate quants Prime cost sums Dayworks
What are prime cost sums?
‘Prime cost sum’ (PC sum) is an allowance for the
supply of labour, plant and materials to be
provided by a contractor or supplier that will be
nominated by the client. The allowance is exclusive
of any profit mark up.
Dayworks
There should be a separate account to
record dayworks undertaken which should be
submitted but he main contractor on a daywork
