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Final Accounts

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

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Final Accounts

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  1. Final Accounts

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

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

  4. 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

  5. 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

  6. Contract Amount • The original figure when the deal was signed

  7. 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

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

  9. 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

  10. 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

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

  12. Prime Cost Items Reconciliation • This adjustment between allowance and actual cost

  13. Provisional Allowance Adjustment • This adjustment between allowance and actual cost

  14. 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

  15. 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

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

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