T017 Contract Practic & T074 Quantification & Costing Rics Apc

Front 1

What is the final account?

Back 1

Detailed statement of all the adjustments to the contract sum and therefore the total amount that the employer is liable to pay, together with the basis on which it was calculated

Front 2

Who prepares the final account? What is its purpose?

Back 2

The QS prepares it to enable the issue of the final certificate

Front 3

What are the relevant time periods?

Back 3

Within 6 months of PC contractor sends Arch/QS all info for final adjustment of contract sum.
Within 3 months of receipt, QS ascertains the amount of L&E, AND all adjustments to be made to the contract sum – i.e. the final account
Architect must ‘forthwith’ send statement to the contractor

Front 4

When must the final certificate be issued?

Back 4

Two months from the latter of:
End of the Rectification Period
Issue of the Certificate of Making Good
When the architect gives the contractor a detailed statement (final account)

Front 5

What must the final certificate state?

Back 5

1) Total adjusted contract sum
2) Total of all additions / deductions
3) Total of all previous payments made to the contractor in interim certificates
4) The difference – expressed as a debt due from one party to the other

Front 6

What is released to the contractor in the final certificate?

Back 6

The remaining retention

Front 7

When is the final date for payment after issue of the final certificate?

Back 7

28 days

Front 8

Can amounts be withheld?

Back 8

Yes, if normal procedures are followed (written notice 5 days before final date for payment and reasons for withholding)

Front 9

What are the usual constituents of a final account?

Back 9

1) Summary
2) Adjustments of prime costs
3) Adjustments of provisional sums
4) Adjustments of approximate quantities
5) Variations
6) Claims
7) Fluctuations

Front 10

When are provisional sums to be used?

Back 10

For items that cannot be fully defined at time of tender

Front 11

When are approximate quantities to be used?

Back 11

For items that cannot be accurately quantified at time of tender

Front 12

What are the constituents if it is a remeasurement contract?

Back 12

1)Summary
2) Bill of remeasurement
3) Preliminaries
4) Claims
5) Fluctuations

Front 13

What is the procedure for getting the final account agreed?

Back 13

1) Once prepared, the QS should send all of the detail and supporting evidence to the contractor
2) Any points of disagreement should be discussed and negotiated
3) Both parties should sign the summary to show their agreement

Front 14

What is the final certificate conclusive evidence of?

Back 14

1) That any work, goods or materials that are expressly described in the contract as having to be to the architect’s satisfaction are so, NOT all other work, materials or goods
2) All adjustments of the contract sum - properly dealt with
3) All EOTs - properly given and dealt with
4) That all direct L&E claims have been settled

Front 15

Explain more about work that has to be the architect’s satisfaction?

Back 15

No definition of ‘reasonable satisfaction’ in the contract
It is down to the architect’s opinion (subjective)
If the contractor is not satisfied his recourse is to refer the matter to adjudication

Front 16

Can accidental inclusions / exclusions or arithmetical errors be corrected?

Back 16

Yes

Front 17

What if adjudication or arbitration proceedings have been commenced before the Final Certificate?

Back 17

The final certificate is taken as conclusive evidence of the matters at the earlier of:
1) The conclusion of the proceedings
2) 12 months if neither party has taken the proceedings any further

Front 18

How do adjudication / arbitration decisions affect the final certificate?

Back 18

The final certificate is subject to the decisions, judgements and awards of the proceedings

Front 19

How long does a party have to commence proceedings after the issue of the Final Certificate?

Back 19

28 days

Front 20

What is the significance of this?

Back 20

1) The parties do not have very long to decide whether or not to start proceedings
2) Failure to issue proceedings in this time could lead to considerable loss

Front 21

Even if unchallengeable on its merits, what grounds can the final certificate be set aside?

Back 21

1) Final certificate issued at the wrong time or by the wrong person
2) Certifier has ruled on things which they had no power to certify on
3) Fraud or collusion between the certifier and one of the parties
4) Improper pressure or influence by the employer on the certifier