FINAL ACCOUNT

Final account: The comprehensive statement prepared by a quantity surveyor at the end of a construction project, detailing the actual costs incurred and comparing them to the original budget.

A final account, prepared by a quantity surveyor at the end of a construction project, is a comprehensive statement that provides a detailed overview of the actual costs incurred during the project and compares them to the original budget. It serves as a financial summary of the project's performance and helps stakeholders assess the project's success in terms of cost control and budget management.

The final account typically includes the following elements:

1. Contract Sum: This is the original agreed-upon amount between the client and the contractor for the construction works.

2. Variations: Any changes or modifications to the original scope of work, along with their associated costs, are documented in this section. It includes additions, omissions, or alterations made during the course of the project.

3. Provisional Sums and Prime Cost Sums: These are allowances within the contract for items that were not fully defined or specified at the time of tendering. The actual costs incurred for these items are detailed in the final account.

4. Dayworks: If any additional work was undertaken on a time and material basis, rather than a lump sum, it is recorded in this section. It includes the description of the work, the number of hours, and the applicable rates.

5. Fluctuations: In certain contracts, there may be provisions for adjusting the contract sum based on changes in market prices or exchange rates. This section includes any fluctuations in costs and their impact on the final account.

6. Loss and Expense Claims: If the contractor incurred additional costs due to delays, disruptions, or other unforeseen circumstances that were not their fault, they may submit claims for reimbursement. These claims, if accepted, are documented in this section.

7. Final Measurements: The quantity surveyor records the final measurements and quantities of the completed work, which are used to calculate the final account.

8. Subcontractors and Suppliers: The costs associated with subcontracted work and materials supplied by external parties are listed separately in this section.

9. Retentions: Retentions are withheld by the client as a form of security until the completion of the project. This section details any retentions deducted from the contract sum.

10. Professional Fees and Other Costs: The final account also includes the quantity surveyor's professional fees and any other relevant costs, such as legal fees or insurance charges.

11. Comparison to Budget: Finally, the final account compares the actual costs incurred against the original budget, highlighting any variances and explaining the reasons behind them.

The purpose of the final account is to provide a transparent and accurate overview of the project's financial performance. It allows the client, contractor, and other stakeholders to evaluate the project's success in terms of cost management, identify any discrepancies or overruns, and ensure proper financial closure of the construction project.

The final account, as mentioned earlier, is a comprehensive statement prepared by a quantity surveyor at the end of a construction project. It provides a detailed breakdown of the actual costs incurred during the project and compares them to the original budget. Here are some additional details about the final account:

1. Objective: The primary objective of the final account is to present an accurate financial summary of the project, outlining the costs incurred and assessing their alignment with the initial budget.

2. Cost Categories: The final account typically categorizes costs into different sections, such as labor, materials, subcontractors, equipment, overheads, and any other relevant cost items specific to the project.

3. Actual Costs: The final account includes the actual costs incurred for each cost category, which are determined by tracking expenses throughout the project. These costs are derived from invoices, receipts, labor records, purchase orders, and other relevant financial documents.

4. Variations and Change Orders: Any changes or variations to the original scope of work are documented in the final account. This includes additional work, omissions, modifications, or adjustments made during the project and their associated costs.

5. Measurement and Quantities: The final account includes the final measurements and quantities of completed work, which are used to calculate the costs accurately. This ensures that the final account reflects the actual physical work performed on-site.

6. Retentions and Deductions: Retentions, which are withheld by the client as security until the completion of the project, are documented in the final account. The account may also include any other deductions, such as penalties or liquidated damages, based on the terms of the contract.

7. Claims and Disputes: If there are any claims or disputes related to costs, delays, or other issues, they may be addressed in the final account. This section provides an overview of any unresolved matters that may have an impact on the final project costs.

8. Comparison to Budget: One of the key aspects of the final account is comparing the actual costs incurred to the original budget. This analysis helps identify any cost overruns or savings and provides insights into the project's financial performance.

9. Final Payment: Based on the final account, the client and contractor can determine the final payment due to the contractor. This payment considers the contract sum, variations, adjustments, retentions, and any other relevant factors.

It's important to note that the structure and content of a final account may vary depending on the specific project, contract terms, and requirements of the parties involved. The quantity surveyor plays a crucial role in preparing an accurate and comprehensive final account to ensure transparency and facilitate the financial closure of the construction project.