Final Account Procedures

Question 1

What is the Final Account?

Answer 1

The process of calculating and agreeing any adjustments to the contract sum

Question 2

What does the JCT say about the Final Account?

Answer 2

• Known as “Final Statement”
• Includes any proceedings (If applicable) including measured works, instructions, fluctuations, prime cost sums, provisional sums, statutory fees, loss and expense, extension of time, LD’s, contra claims)
• After “Final Certificate” issued this can be contested within 28 days
• The standard JCT contract states that the final account should be ascertained no later than 3 months after receipt by the architect/contract administrator of information supplied by the contractor (which itself should not arrive any later than 6 months after issue of the practical completion certificate).
• If the contractor does not submit the Final Statement within 3 months of PC, the employer may on / or after the expiry of that period, give the contractor notice than unless the statement is not submitted within 2 months of this notice, the Employer may himself issue a statement in lieu of that.