Abstract:
During the post-contract administration of construction projects, the project team must produce a final account (FA) that incorporates all the information that signals the final agreed sum that the employer will pay the contractor. It includes payment for any work conducted by the contractor through the main contract, as well as any loss and expenses associated with any extension of time and any other contractual claims. Different FA formats have been developed by professional consultants with various approaches and processes to accommodate different project requirements and conditions of contract (CoC). Currently, there is a lack of understanding of the FA process, which results in material irregularities. Therefore, proper financial and contractual administration during project delivery should ensure that FAs have high standards with no gaps, including appropriate supporting information. The research methodology was based on reviewing of current literature as well as conducting interviews with professional Quantity Surveyors currently involved with construction projects within South Africa. The research findings suggest that to ensure an improved FA, there must be recognition that the FA process starts before the construction period and continues throughout. Therefore, these FA mechanisms should be included in the conditions of contract (CoC), and a final account project execution plan (FAPEP) should be established as soon as possible from commencing a project. It is of utmost importance to retain all records pertaining to all FA items during the project’s execution, which serves as supporting information for the agreed FA.
Therefore, each competent team member should understand their role in the FA process to ensure that the FA does not contain material irregularities. A final account template (FAT) and guidance notes would add value to all South African construction industry professionals and should be used as a guide throughout the FA process to ensure improved FAs. In the future, the proposed FAT and guidance notes might assist quantity surveyors in developing, compiling and finalising FAs for construction projects.
