Final Account in Construction: How to Agree It and Get Paid
The short answer
The final account is the contract sum adjusted for everything that changed, less valid contra-charges and payments made. Build it as the job runs, submit soon after completion, and watch the contract deadlines.
- Start it on day one. A final account built from a live variation register takes days. One rebuilt from memory takes months and loses money.
- Contract sum, then adjust, then submit early. Add variations and dayworks, adjust provisional sums, deduct valid contra-charges, and send the draft within weeks of practical completion.
- Deadlines matter. Under JCT SBC, a final certificate becomes conclusive unless proceedings start within 28 days; a letter disputing it isn't enough.
- Challenge contra-charges and agree in writing. Ask for evidence before any deduction, then record the retention release dates and chase them.
The job finished in March. It's now September and the final account still isn't agreed. The main contractor's QS has your variations "under review". There's a £9,000 contra-charge you've never seen evidence for, and your retention is stuck behind all of it.
For a lot of contractors, the final account in construction is where the margin they priced quietly disappears. Not in one big argument, but in months of delay and small deductions nobody has time to fight.
Here's how to build it, submit it and close it. If you have accounts stuck right now, book a free strategy call and we'll look at what's recoverable. This is general information from a contractor's experience, not legal advice.
What goes into a final account
A final account starts with the contract sum and adjusts it for everything that changed. Here's an illustrative example for a £240,000 fit-out:
| Line | Amount |
|---|---|
| Original contract sum | £240,000 |
| Less provisional sums omitted | −£12,000 |
| Add provisional sums as spent | +£9,400 |
| Add agreed variations (V01–V27) | +£31,650 |
| Add signed dayworks | +£4,200 |
| Add loss and expense (agreed delay) | +£6,800 |
| Adjusted contract sum | £280,050 |
| Less contra-charges (agreed) | −£1,250 |
| Final account total | £278,800 |
| Less paid to date | −£255,000 |
| Balance due (incl. retention still held) | £23,800 |
Your contract decides which lines apply. Fluctuations, for example, only appear if the contract allows price adjustment.
Leaving pending variations off the final account because "they never agreed them". If you were instructed and did the work, it goes in, with your evidence.
Build it while the job runs
A good final account isn't written at the end. It's the last version of three records you keep from day one:
- Variation register: every change, who instructed it, the price, agreed or pending. See how to get variations paid.
- Dayworks file: signed sheets, priced at the contract rates.
- Monthly applications: each one already shows the account to date. See how to write a payment application.
Add a delay log too: dates you were held up, by whom, and what it cost. Loss and expense claims without contemporaneous records rarely succeed.
Still waiting on a final account?
Book a free call with our team. We'll look at your open accounts, your variation records and what's realistically recoverable.
Know your deadlines
Final account deadlines differ by contract, and some are strict. Common ones:
| Contract | What the contract sets |
|---|---|
| JCT Minor Works 2016 | Your final account documents within 3 months of practical completion (unless the contract particulars say otherwise); final certificate within 28 days of receiving them |
| JCT Standard Building Contract | Final certificate no later than 2 months after the latest relevant event, such as the end of the rectification period; it becomes conclusive unless proceedings start within 28 days of the final payment due date |
| NEC4 ECC | Project Manager assesses the final amount within 4 weeks of the Defects Certificate; disputes must be notified and referred within short time limits |
| Bespoke and amended contracts | Often shorter time bars. Read the amendments |
Under the JCT Standard Building Contract, a letter saying you disagree is not enough to stop the final certificate becoming conclusive. You need to start adjudication, arbitration or court proceedings in time. If a final certificate arrives that you don't accept, speak to a construction solicitor the same week.
Final accounts open for months?
Book a free call and we'll look at what's recoverable and how to close them.
Submit, then negotiate
Send your final account as soon as practical completion is reached and the last variations are priced. Weeks, not months.
- One summary sheet like the example above, then a schedule for each line.
- Every variation with its instruction or "agreed" email, price build-up and photos.
- Signed dayworks sheets, and the delay log behind any loss and expense.
- A date by which you'd like to meet and agree it, and a request for the undisputed balance now.
In the meeting, agree the easy items first and write them down. Park disputed items in a list with each side's figure. A final account with 20 agreed items and 3 disputed ones is far easier to close than one big number nobody accepts.
Ask for the undisputed balance to be paid while you argue about the rest. Many payers will pay what nobody disputes; they just won't offer.
Contra-charges: don't just accept them
Contra-charges (back-charges) are deductions a main contractor makes for costs it says you caused: cleaning, damage, delay, remedial work, attendance. Some are fair. Many arrive at the end with no warning and no evidence.
Before you accept one, ask in writing for:
- The contract clause that allows it.
- When you were notified at the time, and given the chance to put it right.
- The actual cost, with invoices or timesheets, not a round number.
If you can't get all three, say so in writing and keep it on the disputed list. Then check your retention position: once the account is agreed, put the release dates in the calendar. See retention money not released if they pass.
Homeowner jobs
On a homeowner job the "final account" is usually the last invoice plus extras. The same rules apply in a simpler form: itemise it, attach the agreed variations, and ask for the undisputed part first. See client won't pay the final invoice, and if it comes to it, our letter before action template.
Final account checklist
If your final accounts keep dragging, our commercial management service prepares and negotiates them. It also reviews old ones and tells you what's realistically recoverable before you commit. To score how well your business protects its margin, take the free 4-minute Construction Business Scorecard.
Want the business itself to run tighter? 1-to-1 mentoring with Sviat, who runs Craftex today, can help. BizMentor mentoring aims for results in about 4 months rather than 1–3-year programs. Book a free strategy call to talk it through.
Before you close your next job
- Variation register, dayworks and delay log are up to date
- Final account sent within weeks of practical completion
- Every line has its paperwork attached
- Contra-charges challenged unless clause, notice and cost are shown
- Final certificate deadlines and retention dates are in the calendar
