RICS's final-account guidance describes a structured review of the contract sum and the evidence supporting adjustments. [1]
Build the account from the agreed starting point
Identify the original contract sum and the documents establishing it. Then list changes, expenditure of provisional sums, adjustments to prime cost allowances and any other amounts payable under the particular contract. Keep an item disputed on entitlement separate from an item whose entitlement is agreed but whose price remains disputed. [1]
As a practical checking exercise, trace each line back to an instruction, approved quotation, assessment or other supporting record. A clear change register maintained during construction is more useful than trying to reconstruct conversations at handover. [2]
Reconcile what has already been paid
Check the payment history against your invoices and bank records, including deposits and any agreed direct payments. Ask for a reconciliation showing the agreed assessment and the amounts already paid. Investigate duplicated entries, missing credits or a payment allocated to the wrong invoice before approving the closing balance.
Also identify retention separately. Ask which release conditions have been met and which remain outstanding under the contract, rather than assuming that agreement of a final figure releases every retained sum immediately. [3]
Keep completion and money distinct
Practical completion has its own contractual meaning and consequences. The later defects process and confirmation that notified defects have been made good can also affect payments. Do not assume that signing a final-account document is interchangeable with certifying practical completion or confirming all defects have been resolved. [4] [5]
Request a separate schedule for any outstanding physical work or documents. Record the agreed action, responsible person and how the obligation is dealt with in the settlement. This makes a continuing obligation visible rather than leaving it hidden behind a settled headline figure. [1]
Be careful with settlement wording
Read any statement described as “full and final settlement”. Ask exactly which claims or matters it settles and whether intended reservations are recorded. RICS's guidance addresses final-account agreements and the need to understand what has actually been agreed. Do not sign unfamiliar release wording merely to obtain a final visit. [1]
Follow the payment and dispute procedure in the signed contract. Consumer remedies for defective services may still be relevant; the existence of a final invoice does not itself determine whether those statutory remedies apply. [6] [7]
As at 2 October 2026, proposed commercial-payment reforms remain before Parliament. They should not be substituted for current contractual requirements when closing an account. Specific settlement or payment-notice disputes need legal advice. [8] [9]