Final account settlement of a residential project
-
The challenge
A contractor believed they were due £340,000 in variations on the agreed project cost but the contract administrator was only willing to pay an additional £70,000.
-
Our solution
We reviewed the account, identified ambiguities and recalculated the contract rates and monies owed.
-
The result
The account was settled and included £240,000 in variations.
A closer look at our approach
We were approached by a contractor after the practical completion of a basement and high-end residential refurbishment in Kensington, London. The contractor was struggling to agree with the contract administrator on the final account and believed they were due an additional £340,000 due to variations and delays to the project, which the contract administrator was not prepared to pay.
We reviewed the final account claim and noted a significant number of ambiguities in the account as the contract documentation had not been managed in accordance with best practice. The information required to present the claim was either not present or not reliable.
We therefore advised that the contract sum document and all variations should be recalculated in order to establish the contract rates and monies owed. Based on the results, a full claim for the final account including £240,000 in variations was made to the contract administrator.
After several meetings between ourselves, the contractor and the contract administrator, the account was settled, including the £240,000 in variations.
FINAL ACCOUNT SETTLEMENT
THOUSAND POUNDS IN VARIATIONS
Related Projects
Fast track delivery of three houses
Our detailed construction programme ensured on-time and under-budget delivery.
Commercial building conversion into flats
Our build cost review enabled the contractor to overcome cash-flow problems via renegotiation of agreed costs with their client.
Propel your business growth with Multiproject
We set you on the path to growth so you can focus on driving your business forward.
Not only will we save you money, time and resources, we also help you streamline your business so you can spend your energy doing what you do best. If you’re committed to growing your business, we can help it happen. .
