Source: https://www.quantsurv.com/library/courses/final-account Content format: Markdown version of the public page. Content reviewed: 2026-10-15 Interactive forms, calculators and booking actions require the linked web page. Any displayed calculation is the page's initial example, not a calculation for your circumstances. # Preparing a final account Build a closing account that reconciles the contract sum, changes, retention and payments, with unresolved items kept visible. by [Jack Butler-Kettle]() · 60–90 min course · About 19 min readShare ## Your course at a glance **Start here:** Anyone assembling or checking a simple closing construction account. No previous final-account experience is needed; you will use basic arithmetic and supplied records. **Your finished output:** Prepare a reconciled closing account showing agreed value, unresolved items, paid amounts, retention and the actions needed before closure. **Plan for 60–90 minutes.** The suggested activities total about 75 minutes: 5 to prepare, 42 for lessons and practice, 8 for the knowledge check and 20 for the final task. This is a planning estimate, not a timed or accredited course. Pause or repeat any stage. You need a calculator and somewhere to write. All project facts and figures are fictional learning examples. Use them for the exercises; keep confidential project information out of these practice fields. - Explain the difference between final value and final cash payment. - Reconcile a contract baseline and changes without duplication. - Keep disputed items and retention visible. - Record the scope of agreement and remaining actions accurately. For support with this work on a live project, see [Subcontract final account preparation]() for subcontractors. ### Before you begin · 5 minutes The work is complete and both parties agree the value. Does that necessarily mean everything has been paid, all retention is due and every claim is settled? Explain your first view. An uncertain answer is a useful starting point. Keep it and compare your reasoning after the course. Your starting response 0 of 6 lessons reviewed · 0 of 5 final checks ticked Review ticks record your own progress. Written work is self-assessed against the model and criteria; it is not automatically marked. Use Save progress to keep your writing and review ticks on this device. Saved work stays in this browser’s storage; it does not sync between devices. Quiz selections are not saved. On a shared device, download your work and clear it here. ## 1\. Learn and practise Work through the lessons in order. Read the explanation, attempt the task without the model, then compare your reasoning. Correct your work before ticking the lesson. Expand one lesson at a time or keep several open. 1. ### 1. Understand what a final account is for About 7 minutes A final account brings the financial value of the work to a closing position under the contract. It connects the original price to changes and other adjustments, then connects that value to payments and retained amounts. It is more than the final invoice. An invoice requests payment; an account explains how the overall value has been established. Four states need separate records: physical completion, agreement of value, completion of the contractual final-payment process, and receipt of money. They may happen at different times. Obligations such as defect correction, delivery of records or retention release can remain after work on site ends. Start with terms. The contract sum is the agreed baseline price, subject to the agreement’s adjustment rules. An addition increases the value; an omission removes value for work no longer included. Retention is an amount withheld under the applicable terms. A disputed item is a difference between the parties’ positions, not an agreed addition simply waiting for a formula. The purpose of your closing schedule is to make each state visible and reproducible. Someone unfamiliar with the project should be able to trace the baseline, adjustments, unresolved items, payments and remaining actions. A balanced spreadsheet is necessary, but it does not determine the legal effect of a proposed settlement. #### Your turn Draw four boxes for work complete, value agreed, payment process completed and cash received. Put these facts in the right boxes: practical completion recorded; agreed value £214,000; £195,000 paid; a final notice still awaited. List two questions the figures alone cannot answer. Your response to lesson 1Compare your reasoning Practical completion concerns the physical/contractual completion status. £214,000 concerns value; £195,000 concerns cash. The awaited notice belongs to the final-payment process. The figures do not establish when the balance must be paid, when retention is released, whether other claims are settled or whether completion obligations remain. Keep those questions in the closing action list. If your answer differs, identify why, revisit the relevant explanation and correct your response. Equivalent wording is fine when the reasoning and checks are sound. I attempted the task, checked the reasoning and corrected any gaps. 2. ### 2. Set up a reliable closing file About 7 minutes Create an index before attempting to agree the total. Obtain the executed contract and amendments, accepted price and qualifications, instruction and variation registers, prior applications and assessments, bank allocations, completion records and retention ledger. Record the version and owner of each source. A current summary without its supporting detail is a starting point for enquiry, not proof. Read the final-account procedure and submission requirements. Identify deadlines, information required, approval authority and any proposed release or settlement wording. Do not assume the interim process simply continues unchanged. If the terms or their consequences are uncertain, obtain appropriate advice while keeping deadlines visible. Use a reconciliation ledger with a unique reference for every adjustment. Suggested columns are description, contractor’s position, payer’s position, agreed amount, evidence and status. Keep correspondence and decisions linked to the row. This allows an agreed subtotal without making disputed items disappear. Check the bank ledger against payment certificates or assessments. A payment may cover multiple accounts, tax treatment or a separate invoice. Confirm the allocation and whether your values are gross or net of retention. Define the basis once at the top of the schedule so later deductions mean what readers expect. #### Your turn A folder contains two contract sums, an unsigned variation agreement and an unallocated bank transfer. Make an information-gap list stating the issue, why it matters, the source you need and the responsible role. Explain which of those figures you would avoid calling “agreed” at this stage. Your response to lesson 2Compare your reasoning Resolve the contract-sum conflict through the executed pack and accepted pricing documents, not by choosing the lower or newer-looking number without checking. Seek evidence of the variation’s approval and authority before labelling it agreed. Ask accounts to identify the bank allocation before deducting it from this project. Each gap needs an owner and review date. Provisional figures can be shown as such; they must not silently enter an agreed subtotal. If your answer differs, identify why, revisit the relevant explanation and correct your response. Equivalent wording is fine when the reasoning and checks are sound. I attempted the task, checked the reasoning and corrected any gaps. 3. ### 3. Reconcile the original price and every adjustment About 7 minutes The running example starts at a £200,000 contract sum excluding VAT. The parties have agreed £18,000 of additions and £4,000 of omissions. Show the movement as £200,000 + £18,000 − £4,000 = £214,000. Keep the baseline fixed and make subsequent changes visible rather than overwriting the original price. Reconcile the change register to the account in both directions. Every included account adjustment should have a source in the register; every register item should have an explained account status. This catches missing changes and items counted twice. Separate a revision to an existing change from a genuinely additional change. Review provisional allowances, measured quantities and other adjustments according to the contract. If an allowance is replaced by an actual valuation, show the removal and replacement clearly so both are not retained. Check whether a claim is already included in a variation or another account line. Ask a reviewer to follow one sample item from instruction to measurement, rate, agreement and account total. Then check the arithmetic for the whole schedule. Agreement must be supported by the actual record and authority, not inferred from a formula or an unanswered email. #### Your turn Rebuild the £214,000 agreed subtotal. A colleague then adds a £2,500 variation that is already within the £18,000 additions. Calculate the erroneous subtotal and explain how your register-to-account check would detect it. Your response to lesson 3Compare your reasoning Correct agreed subtotal: £200,000 + £18,000 − £4,000 = £214,000. Adding the same £2,500 again gives £216,500, an overstatement. The unique variation reference should appear only once in the account mapping. Check the make-up of the £18,000 and retain the supporting agreement so the duplicate is demonstrable, rather than merely removing an unexplained amount. If your answer differs, identify why, revisit the relevant explanation and correct your response. Equivalent wording is fine when the reasoning and checks are sound. I attempted the task, checked the reasoning and corrected any gaps. 4. ### 4. Keep disagreements clear and negotiable About 7 minutes A further £6,000 variation remains disputed in the running example. Show £214,000 as the agreed adjusted value and £6,000 as the contractor’s additional unresolved position. A total claimed position of £220,000 can be useful if labelled correctly; it is not an agreed settlement. Break each disagreement into a precise issue. Is the dispute about instruction, quantity, rate, responsibility, notice compliance or duplication? Record each party’s amount and reason, supporting references, missing information and next action. A single unexplained “balance to agree” makes resolution harder. Prepare a negotiation schedule from the evidence. Identify what can be agreed, what needs further records and what requires specialist advice. Keep a dated record of offers and responses and follow applicable confidentiality or privilege advice. Do not assume a negotiation label automatically gives correspondence a particular legal protection. After a discussion, record the actual agreed points and remaining reservations. Check the authority of the people confirming them. Partial agreement should remain partial in the ledger. The [final-account guide]() connects this record-keeping to the wider closing process. #### Your turn Write a ledger row for the £6,000 variation where the payer accepts the instruction but disputes the measured quantity. Specify the evidence needed and a next action. Then write a sentence reporting the agreed subtotal and the contractor’s total claimed position without confusing them. Your response to lesson 4Compare your reasoning The row should identify the variation, contractor’s £6,000 position, payer’s stated quantity objection, drawing and measurement references, and a joint measurement or evidence review action with an owner and date. Do not describe instruction authority as disputed if it is accepted. Report: “Agreed adjusted value is £214,000; a further £6,000 quantity-related variation remains unresolved, giving a contractor’s claimed total of £220,000.” If your answer differs, identify why, revisit the relevant explanation and correct your response. Equivalent wording is fine when the reasoning and checks are sound. I attempted the task, checked the reasoning and corrected any gaps. 5. ### 5. Separate value, retention and cash About 7 minutes Assume £195,000 has been paid and £5,000 retention remains held within the agreed gross value of £214,000. The remaining agreed value excluding held retention is £214,000 − £195,000 − £5,000 = £14,000. Show the £5,000 retention separately with the applicable release conditions. The overall agreed value not yet received is £19,000, consisting of those two parts. These calculations describe the account on stated assumptions. They do not establish that every part is due today. Check the final-payment mechanism, notices and retention-release conditions. Physical completion alone does not supply every release date. The most common arithmetic error is deducting retention twice. If a starting subtotal is already after retention, another retention deduction understates the position. Label gross value, retained amount, net value and cash explicitly. Reconcile the same figures using a second route: £14,000 plus £5,000 plus £195,000 should return to £214,000. Check receipts and credits up to a stated cut-off. If a new payment arrives during negotiation, update the cash ledger with its reference while preserving the agreed value. A cash movement does not itself alter the valuation agreement. Worked fictional example Where the agreed £214,000 sits | Part of agreed value | Amount | Status | | --- | --- | --- | | Cash paid | £195,000 | Receipt allocated | | Remaining value excluding retention | £14,000 | Payment procedure/timing to check | | Held retention | £5,000 | Release conditions to check | | Agreed gross value | £214,000 | Excludes the separate £6,000 dispute | #### Your turn Complete both reconciliation routes for the running example. Then assume another £4,000 is paid against the non-retention balance. State paid-to-date, the remaining non-retention value and held retention. Explain what would still determine the payment and release dates. Your response to lesson 5Compare your reasoning Initially £214,000 − £195,000 − £5,000 = £14,000; reversing gives £195,000 + £14,000 + £5,000 = £214,000. After a correctly allocated £4,000 receipt, paid-to-date is £199,000 and the remaining non-retention value is £10,000, with £5,000 still held. The agreement, applicable notices and release conditions determine timing; the arithmetic alone does not. If your answer differs, identify why, revisit the relevant explanation and correct your response. Equivalent wording is fine when the reasoning and checks are sound. I attempted the task, checked the reasoning and corrected any gaps. 6. ### 6. Agree the scope of closure and hand over the record About 7 minutes Before marking an account closed, state what is being agreed. Does a proposed document settle the whole account, specified items, a particular period or certain claims? Does it preserve unresolved matters? Read the wording with the schedule and obtain suitable advice on uncertain legal effects. A cover heading such as “final account” does not answer every question about a release. Prepare a closing checklist: approved value and scope, authorised confirmation, final-payment steps, receipt allocation, retention treatment, unresolved items, remaining obligations and archived evidence. Assign every open matter to an owner. Closure can have stages; the valuation may be agreed while retention monitoring remains active. Send a concise handover to accounts and the project lead. It should say what is agreed, what remains, the relevant dates and where the supporting records are stored. Preserve issued versions and the history of material decisions. Access should remain available to the people responsible for future obligations. Use the [final-account reconciliation template]() to practise the ledger. Check it against the source documents rather than relying on the appearance of a completed spreadsheet. Your best final check is whether someone else can explain the account without asking you to reconstruct it from memory. #### Your turn Draft a handover of no more than six sentences for the example: agreed value £214,000, paid £195,000, held retention £5,000, unresolved variation £6,000. Include actions and explain why signing a broad settlement without reviewing its scope could undermine the way you have recorded the unresolved item. Your response to lesson 6Compare your reasoning State the agreed £214,000, the £14,000 non-retention balance on the exercise assumptions, the £5,000 held retention and the separate £6,000 unresolved claim. Assign final-payment and retention checks, and a quantity review for the variation. Reference the approved account and evidence index. Broad settlement wording may have effects beyond the subtotal, so review its scope and obtain advice before assuming the £6,000 remains preserved. If your answer differs, identify why, revisit the relevant explanation and correct your response. Equivalent wording is fine when the reasoning and checks are sound. I attempted the task, checked the reasoning and corrected any gaps. ## 2\. Check your understanding ### Check your understanding Allow 8 minutes. Close the lesson notes, answer each question and explain your choice to yourself. Read the feedback, revisit any weak point and try again. These checks support learning; they do not certify professional competence. 1. What is the agreed adjusted value before the disputed item? £214,000£220,000£222,000 2. What remains of the agreed value after £195,000 paid and £5,000 held retention? £19,000 excluding retention£14,000 excluding retention£9,000 excluding retention 3. Where should the £6,000 disputed variation appear? Within the agreed subtotalAs a separate unresolved item with the parties’ positions and evidenceNowhere until it is paid Choose an answer for every question to check your work. Answer notes 1. **£214,000.** The agreed adjustments give £200,000 + £18,000 − £4,000 = £214,000. The separate £6,000 claim is not yet agreed. 2. **£14,000 excluding retention.** £214,000 − £195,000 − £5,000 = £14,000. The held £5,000 is tracked separately; deducting it twice would understate the account. 3. **As a separate unresolved item with the parties’ positions and evidence.** Keeping it visible and distinct allows the agreed position to reconcile while preserving an accurate record of the unresolved claim. ## 3\. Complete the independent task Allow 20 minutes. Use the new facts below to produce the finished output. Try it before opening the model response, then revise your work against every checking criterion. ### Your project brief Prepare a closing account and handover from this fictional package. Do not infer payment due dates or settlement effects that the records do not supply. Executed price £150,000 excluding VAT. Agreed change register Additions £12,500; omissions £2,500. Unresolved item U07 Contractor claims £4,000; payer disputes quantity. Cash ledger £145,000 paid and allocated to the account. Retention ledger £4,000 still held within gross value; release conditions need checking. Draft settlement A proposed document says it settles all claims; it has not been reviewed or signed. 1\. Calculate the agreed adjusted value and show every movement. 2\. Record U07 separately with the evidence and next action needed. 3\. Reconcile cash, held retention and the remaining agreed value. 4\. State what the supplied records do not establish about payment timing. 5\. Identify the settlement-scope issue and who must review it. 6\. Write the closing handover with named roles responsible for open actions. Compare with the model response Agreed adjusted value is £150,000 + £12,500 − £2,500 = £160,000. The contractor’s additional £4,000 claim gives a claimed total of £164,000, not an agreed total. Reconcile £160,000 − £145,000 paid − £4,000 held retention = £11,000 remaining agreed value excluding retention. Reverse-check: £145,000 + £4,000 + £11,000 = £160,000. U07 needs the competing quantities, measurement records and a review owner. The final-payment mechanism and retention-release conditions are missing; obtain them before asserting dates or that everything is due. The broad settlement wording needs review because it may affect U07 and other matters. Do not sign or mark the entire account closed on the strength of the subtotal alone. The handover should allocate account approval, final-payment review, cash reconciliation, retention monitoring and U07 resolution, with evidence locations and dates for the next internal actions. ### Check your finished work Tick a criterion only when your work demonstrates it. If a calculation, source or required check is missing, revisit the relevant lesson and revise the output before using the method on a project. Agreed £160,000 and claimed £164,000 are labelled distinctly.£11,000 and £4,000 reconcile to the paid amount without duplicate retention.U07 has a specific quantity/evidence action.Missing payment and release rules remain visible.Settlement review and remaining obligations are included before closure. ## 4\. Review and use what you learned Return to your starting response. Explain what you would now do differently and why. The aim is a reliable method you can repeat, including knowing when information or specialist review is needed. - Tomorrow, draw the bridge from original price to agreed value to cash. - In a week, explain why agreement, payment and retention release need separate statuses. - Before closing a real account, ask a reviewer to trace a sample change and reverse-check the whole reconciliation. Use the blank templates below to practise the record format. Their completed examples have their own stated facts; keep those figures separate from your independent course task. ### Final account reconciliation Compare the same valuation date and scope. Enter omissions and deductions as negative figures. Amounts exclude VAT. [Download blank Excel workbook]() Free blank template for your own project. The completed example is shown below. No email address required. View the completed example Completed fictional example #### Final account reconciliation Scroll across if needed to read the whole record. A dash means no value has been entered. Final account reconciliation: completed fictional example | Item ref | Account item | Your valuation (£) | Contractor valuation (£) | Difference (£) | Evidence / valuation basis | Agreed / disputed | Required response / next action | | --- | --- | --- | --- | --- | --- | --- | --- | | BASE | Original subcontract works | £100,000.00 | £100,000.00 | £0.00 | Signed subcontract and scope | Agreed | Confirm common valuation basis | | VAR-01 | Instructed variations | £25,000.00 | £18,000.00 | £7,000.00 | Variation register and instructions | Disputed | Reconcile disputed quantities and rates | | LE-01 | Additional evidenced cost | £8,000.00 | £3,000.00 | £5,000.00 | Separate cost schedule and event records | Disputed | Request itemised assessment | | CC-01 | Contra-charge deduction | \-£3,000.00 | \-£5,000.00 | £2,000.00 | Scott schedule and supporting records | Disputed | Resolve the £2,000 difference | This compares valuations. Reconcile receipts, retention and tax separately before stating an amount payable. ### Final account preparation worksheet Reconcile the closing value with the change register before recording payments. Label proposals and agreements distinctly. [Download blank Excel workbook]() Free blank template for your own project. The completed example is shown below. No email address required. View the completed example Completed fictional example Westhaven refurbishment · 14 October 2026 · Version 1.0 #### Final account preparation worksheet Scroll across if needed to read the whole record. A dash means no value has been entered. Final account preparation worksheet: completed fictional example | Account | Original sum (£) | Agreed changes (£) | Unagreed claim (£) | Proposed gross (£) | Retention held (£) | Payments received (£) | Proposed balance (£) | | --- | --- | --- | --- | --- | --- | --- | --- | | WH-042 closing proposal | £200,000.00 | £18,000.00 | £3,000.00 | £221,000.00 | £10,900.00 | £190,000.00 | £20,100.00 | £221,000 is the proposed gross account, including £3,000 still disputed. £20,100 is the proposed balance excluding retention and VAT; it is not an agreed final payment. This is a foundation for the defined task, not a professional qualification or a substitute for checking the actual contract and project. Use the sources and related resources below to continue learning. [Browse the Library]()