Preparation final account statement

Construction contracts generally provide some mechanism for the final payment to be made to the contractor on completion of the works described in the contract. Generally this payment will be made at the end of the defects liability period providing that all patent defects have been rectified.

Preparing the final account is the process of calculating and agreeing any adjustments to the contract sum (the amount originally set out in the contract to be paid to the contractor for completion of the works) so that the amount of the final payment can be determined. The amount of the final payment is then set out in the final certificate (or final statement). It is possible for the final certificate to show that money is owed to the Client, rather than due to the contractor.