Final Accounts

Accounts Submissions Last Bill for Contracted Works ( excluding Retention) Presented at Practical Completion Practical Definition dependant on Contract Read pages 6 & 7

Liquidated Damages Penalty Clauses for late completion Damages will apply after all extension of times are exhausted

Extention of Time Dependant on contract conditions Usually for weather, design delays Not usually for builders problems such as subcontractor not turning up, material delays etc

Final Accounts Contract Amount Bond Variations Claim for Extended Site Establishment Rise & Fall Adjustments Liquidated Damages Prime Cost Reconciliation Provisional Allowances Adjustments Provisional quantities adjustments Nominated subcontractors Progress Payments Retentions Bank Guarantee

Contract Amount The original figure when the deal was signed

Bond Some contracts require payment from the builder a performance bond This bond may be forfeited if specified contract conditions aren’t filled Very rare condition of contract Contract will determine who receives interest payments from bond

Variations May be extras or savings to the original contract Good practice is for these to be agreed before this stage

Claim for Extended Site Establishment A construction site will have fixed weekly cost – Site sheds – Hoardings – Site staff – Insurances etc Many variations will result in extending the construction time Delays caused by client for e.g. design changes, information on drawings etc

Rise and Fall Adjustments If contract is rise and fall type it will specify what components of the contract price can be changed The contract should also specify basis for change – CPI index – Wage case decisions by the industrial relation commision – Or some other formula

Ascertained and Liquidated Damages If lodged with your claim it will be admission of your breach – Exceeding time allowance

Prime Cost Items Reconciliation This adjustment between allowance and actual cost

Provisional Allowance Adjustment This adjustment between allowance and actual cost

Provisional Quantities Adjustment This items allows for items where quantities are difficult to estimate This adjustment between allowance and actual amount used is made The cost difference is either added or credited

Nominated Subcontractors Usually suppliers who are contracted by the client during the design phase- builder is unable to competitively tender this part of the price Once construction has commenced supervision transfers to the builder Lifts are commonly done this way

Progress Payments Previous progress claims that have been paid are listed and deducted from the contract price