Agreement Of Final Account
A final statement of construction contracts is the agreed statement of the amount of money that must be paid by the employer to the contractor at the end of a construction contract. A closing account gives a sense of the finality of the negotiations that lead to the final settlement agreement between the contracting parties. Notwithstanding the standard contractual operating mechanisms mentioned above, “consideration” generally applies. If you are a management contractor or a customer, there may be cases where you have paid for something that will later prove responsible for the supply chain. For example, a third party damaged the works outside of hours, but since you could react better, you mobilized a team and repaired the damage. However, as this is not your risk or liability under the terms of the contract, these fees must be deducted from the provider`s account. Approval of the end-of-contract account allows the contract administrator to issue the final certificate. The final certificate concludes that all patent defects have been corrected, all adjustments to the contract amount have been agreed and all claims have been settled. Latent defects can still be detected after the conclusion of the contract and can give rise to actions for damages, default or negligence.
During the final settlement phase, the holder is entitled to a part of the daily allowance corresponding to the signed daily worksheets. Where final specifications for the article are drawn up, all variants at a principal cost amount shall be taken into account in the final statement. Volume auditors usually draw up final scores in the most appropriate manner for the project concerned, starting with the initial contract amount. While the contract may delegate responsibility for preparing the final statement to the employer, the best approach is usually for both the employer`s quantitative auditor and the contractor`s auditor to work together to establish an agreed account. There is no standard “statement of account” form. Most forms follow a similar format. We evaluate all the financial aspects of the project and collect all the documents necessary for the preparation of the final accounts It is precisely because of the potentially serious consequences of the consistency of these financial statements that subcontractors (and contractors) must be attentive to their problem. If they do not agree with the account, they must ensure that they take the necessary steps in accordance with the corresponding clause to dispute the account or, at the very least, the parties with whom they do not agree – or they may find that the account is mandatory. . . .