Final Account

How it's built up

Final account = original contract sum + approved variations − approved omissions + provisional sum reconciliation + final adjustments (e.g. fluctuations clauses, loss and expense claims) − retention not yet released.

The QS prepares a final account statement showing each component with full audit trail. The contractor and consultant agree it; the contract administrator certifies it. Once certified, the final certificate is issued, locking out-turn cost.

When it's typically agreed

On well-run projects, final account is agreed within 6 months of practical completion. On disputed projects, it can drag on for years. The longer it drags, the harder agreement becomes — memory fades, key staff leave, evidence is lost.

A best-practice consultancy aims to have all variations priced and agreed before practical completion. Final account then becomes a clerical exercise rather than a negotiation.

Common pitfalls

• Letting the final account drift to "after the next project". The next project starts immediately; the final account never gets the attention it needs. Discipline at closeout is the antidote.
• Not capturing the audit trail of every variation. At final account, the contractor will challenge variations they think shouldn't be there or were undervalued. Without the trail, the consultant has no defensible position.
• Releasing final retention without proper Certificate of Making Good Defects. If retention is released before defects are remedied, the client has lost their leverage. Discipline through the defects liability period is part of final-account discipline.

Related

• What is out-turn cost? →
• What is a valuation? →
• What is practical completion? →