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

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