A Final Account Statement in quantity surveying is a comprehensive financial document that reconciles the total costs of a completed construction project with the agreed-upon contract sum. It represents the final settlement of all financial matters between the client and the contractor, taking into account all completed work, variations, adjustments, and any claims or retentions that occurred during the project.
The primary purposes of a Final Account Statement are to:
- Confirm the final project cost: The Final Account Statement provides a detailed breakdown of the actual costs incurred during the construction project, allowing both the client and the contractor to understand the final project cost and how it compares to the original contract sum.
- Reconcile discrepancies: The Final Account Statement helps to identify and reconcile any discrepancies between the original contract sum and the actual costs incurred, such as variations, claims, or adjustments made during the project.
- Close out financial matters: The Final Account Statement serves as a basis for the final payment to the contractor, ensuring that all financial matters between the client and the contractor are settled upon project completion.
- Recordkeeping and reference: The Final Account Statement serves as a valuable record for future reference, allowing both parties to review and analyze the project’s financial performance and make informed decisions for future projects.
In the context of quantity surveying, the process of preparing a Final Account Statement typically involves the following steps:
- Reviewing all project documentation, including contract documents, interim payment certificates, variation orders, and claims.
- Verifying the measurements and quantities of the completed work, including any variations or adjustments that occurred during the project.
- Calculating the final cost of the project, taking into account all completed work, variations, claims, retentions, and any other financial adjustments.
- Preparing a detailed breakdown of the final project cost, comparing it to the original contract sum, and reconciling any discrepancies.
- Submitting the Final Account Statement to the client and the contractor for review, agreement, and final payment.
The preparation and agreement of a Final Account Statement are crucial aspects of quantity surveying, as they help to ensure a transparent and fair settlement of all financial matters between the client and the contractor upon project completion.
