What should a subcontractor final account dispute letter say?
It should set out your account, their assessment, every difference with your reasons and evidence, the sum due and a date to reply.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
Think of it as a reconciliation with a request at the end, not an argument. Open with the two figures: the final account you submitted and its date, and the assessment and its date. Then list every line where they differ, in the order of the account. Against each, give three things. First, the amount of the difference. Second, the basis for your figure: the instruction, the measure, the rate or the clause. Third, the reference to your evidence. Where you accept an item, say so. Conceding the weak lines is what makes the strong ones believable. Close with the sum you say is due, a date for agreement or a reasoned reply, and what you will do if neither comes. Keep it flat and factual. An adjudicator or a solicitor will read it before long, and a calm, dated statement will count for more then than a page of grievance. Attach the schedule of differences rather than burying it in the text.
Example
Illustrative example. The scenario and figures are invented.
The facts
A subcontractor submits a final account of £412,000 and the main contractor's assessment comes back at £356,000. The letter answering it has to set out the eleven differences that make up the £56,000 gap.
What happens
- The letter lists four variations assessed at nil, with the instruction references.
- One measured item cut by £9,000 is listed with the drawing and the agreed measure attached.
- A £14,000 contra-charge with no notice or evidence is listed as such.
- Two items the subcontractor accepts are listed as accepted.
- The letter asks for agreement of £402,000 or a reasoned reply within 14 days, and notes that the dispute will otherwise be referred.
The letter in figures
| Item | Amount |
|---|---|
| Submitted account | £412,000 |
| Main contractor's assessment | £356,000 |
| Differences listed, eleven items | £56,000 |
| Agreement sought | £402,000 |
The outcome
The eleven differences, totalling £56,000, are on one page with their evidence. The main contractor has 14 days to agree £402,000 or give a reasoned reply before referral.
Final Account Claim produces that schedule of differences, with the evidence checked, before the letter goes.