Final account and actual quantities

It does not operate the same way in every form of contract. The final account differs between measured and lump sum contracts.

In a measured contract the final account is the central mechanism. Unit prices stay firm, and the final amount follows from the quantities actually built.

In a lump sum contract the final account does not disturb the global price, save on a change of programme. Quantity variances fall on the contractor.

In both cases additional works follow their own regime, covered in the article on additional works.

This difference explains why the same site situation does not carry the same financial consequences depending on the form adopted, as the article on measured and lump sum develops.

Cause of variance	Origin	Treatment
Measurement error	The tender package	Adjustment in the final account
Change during the works	The client's decision	Variation
Actual site conditions	Circumstances	Contractual valuation
Different measurement	The rule applied	Return to the measurement rules

It is the document that governs, and it is taken at the right moment. Site measurements are recorded jointly as the works proceed.

The site record establishes the quantities built, jointly between contractor and design team.

It must be taken before the work becomes unverifiable, which is the case for anything that will be covered up.

Foundations, buried services, insulation and works in crawl spaces cannot be measured after the event.

A record not taken in time turns a verifiable quantity into a negotiated one, which weakens the client's position.

This constraint of timing is specific to the final account and cannot be recovered.

Four causes, to be distinguished since they call for different treatment. They explain the variance between planned and actual quantities.

Error in the original measurement, which engages the preparation of the package.

Evolution of the project during execution, which is a change rather than an error.

Imprecision in the measurement rule, where the original measurement and the final account do not apply the same method, as the article on units and measurement rules explains.

Difference between built and invoiced, which is a matter of verification.

The third cause is the most insidious: two people in good faith arrive at different quantities because the rule was not written down.

Five checks, from quickest to longest.

Reconciliation with the schedule, item by item.

Checking the site records, verifying that they cover works that cannot be verified later.

The geometric consistency check, on the same logic as when checking the schedule.

Checking the prices applied, verifying that they match the contract prices and not reconstituted ones.

Checking additional works, verifying their classification and method of valuation.

The fourth check is often neglected although a substituted price passes easily unnoticed in a voluminous account.

Three points, in the contract documents.

How site records are made, frequency and signatories.

The measurement rule applying to the final account, which must be the same as at the original measurement.

The period for challenging the final account, and its effects.

The second point avoids the most disputes, at no drafting cost.

Two limits.

It does not settle quality of execution, which belongs to handover and warranties.

It does not settle delay, which belongs to time and damages clauses.

An accurate account on defective work remains an accurate account, and the two questions are dealt with separately.

Four rules.

Take site records before covering up, without exception and without waiting for completion.

Apply to the final account the measurement rule of the original measurement, and have written it into the package.

Check the prices applied, and not only the quantities.

Distinguish quantity variance from additional work, which follow different regimes.