Final account: definition and example
The closing valuation of the subcontract work and relevant adjustments, which may be proposed, disputed or agreed.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
The final account brings together the value of the original work, changes and other applicable adjustments. It may be proposed, disputed or agreed. The gross valuation is different from the balance to be paid after previous payments, retention and any properly supported deductions.
Reconcile each component and identify unresolved items. Final account recovery can help explain the remaining balance without obscuring the points still in dispute.
Worked example
The facts
A subcontractor proposes a final value of £60,000 and records £52,000 of payments received.
What happens
It separates £3,000 of retained money from the other unpaid amounts.
It checks whether all changes and deductions in the £60,000 valuation are agreed.
What this shows
The £8,000 arithmetic balance still needs to be separated into payable, retained and disputed amounts.