The final account in construction and engineering contracts


Published by a ³ÉÈËÓ°Òô Construction expert
Practice notes

The final account in construction and engineering contracts


Published by a ³ÉÈËÓ°Òô Construction expert

Practice notes
imgtext

What is the final account?

The expression 'final account' refers to the consolidated financial summary which is presented by the contractor to the employer after all work has been completed. This summary will demonstrate the total sum the contractor considers due to it for the works that it has actually carried out, as distinct from the works that were set out in the contract when it was originally executed.

Prior to the final account stage, most building contracts will provide for interim payments to be made to the contractor as the works progress—see Practice Note: Interim payments in construction contracts.

In its final account, the contractor includes all of its valid contractual claims for additional payment. Under some forms of contract, the contractor’s obligation is only to provide the documents which are necessary for the employer to calculate the final account.

The final account wraps up all that has gone on, in respect of payment to the contractor, over the term of the contract. While it may be possible for the parties to agree on much

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Interim Payment definition
What does Interim Payment mean?

Most building and engineering contracts include express provisions for paying contractors in instalments as the work progresses—these are known as interim payments. Even where there is no express provision for interim payments, there may still be an term'>implied term for reasonable payments to be made as the work progresses, and the Housing Grants, Construction and Regeneration Act 1996 provides for interim payments where works last longer than 45 days.

Read more

Popular documents

Time at large in construction contracts

Time at large in construction contractsThis Practice Note examines the concept of ‘time at large’ in relation to the completion of works under a construction contract, including what time at large means, how it occurs and what the consequences are of time becoming at large (including what

What is practical completion?

What is practical completion?Practical completion marks the end of the construction period of a project, when the works are 'finished' and the employer can occupy and/or use them. Practical completion also typically marks the start of the defects liability period/maintenance period.As explained

Defects liability period and rectification of defects

Defects liability period and rectification of defectsIt is common in construction projects for defects to manifest or appear in the works. Most construction contracts require the contractor to return to site to rectify (also known as ‘make good’) defects which arise or are discovered during a

What is the difference between termination, determination and a voided contract?

What is the difference between termination, determination and a voided contract?In respect of commercial contracts, under English law there is no significant difference between the terms ‘termination’ and ‘determination’.A contract can be terminated or determined where a party to a contract conducts