Final Accounts in Construction

Final AccountsMost construction disputes end up as arguments over the final account, as the contracting parties bring all of their claims and disputes together and to a head, at the end of the job, in a fight over how much is owed.

When construction industry contracting parties get into arguments and construction disputes, many find it makes more sense, in terms of time and cost, to have one single dispute at the end of the job on the finalised account. It should cover all of the issues, rather than having an ongoing series of adjudications throughout the job on interim applications and separate construction claims.

Having all the claims presented properly in a consolidated final account statement document is key to resolving final accounts without the need for adjudication and formal dispute resolution in the construction industry.

What are Final Accounts?

A final construction account should be a detailed summary of all claims and entitlement under and in connection with the contract, and should be provided with all relevant supporting information, to enable the valuer or certifier of the finalised account, to properly value the works and provide a fair and reasonable final account, valued in accordance with the terms of the Contract.

In the event that the ending account cannot be agreed, having a consolidated complete finalised account enables parties to move forward to resolving the account in the swiftest and most economical manner.

If it has to be presented in an adjudication, it is important to make sure that the dispute is presented as a single dispute, for the purposes of construction adjudication, as normally, multiple disputes cannot be referred to adjudication in construction disputes at the same time, in one single adjudication. Contract Dispute Resolution, CDR, has extensive experience in guiding its clients through the detailed contractual and statutory provisions, and the ever expanding body of case law on construction adjudications, to ensure that the account dispute is resolved in the moist efficient manner in adjudication.

Simon Lee of CDR is a qualified and accredited Construction Adjudicator, and is able to assist in the preparation and presentation of final accounts with more than twenty years’ commercial, legal and quantity surveying experience, to bring together the finalised account into a consolidated, thorough, quality document.