Final account disputes

When the final account stalls, turn the project history into a coherent valuation case.

HQ Law advises on final accounts involving valuation, variations, loss and expense, contra charges, set-off, retention and other unresolved project issues.

Discuss the final account Construction disputes

Build the final account file

Contract and amendments, valuation history, variation instructions, substantiation, programmes, correspondence, payment notices, expert/QS material and a reconciled account.

The strength of any position depends on the actual contract, notices, evidence and procedural history. HQ Law can review the material, identify the legal and commercial issues and advise on the proportionate route forward.

Possible routes

Focused correspondence or negotiation
Construction adjudication where available and appropriate
Mediation or settlement discussions
Litigation or arbitration where the contract and circumstances require it

Defined first step

Construction Dispute Assessment — £795 + VAT.

For one defined final-account dispute, HQ Law can review the agreed core contract and dispute documents, discuss the position in a 45-minute call and provide a concise action plan addressing the likely routes forward.

The standard scope assumes one contract/dispute and up to 100 pages of agreed core documents. Larger records or technical valuation/programme analysis are separately scoped.

Final account mechanics

Why do final accounts become disputes?

A final account usually stops being a simple valuation exercise when several issues overlap: the value of variations, omitted work, measurement, loss and expense, extensions of time, liquidated damages, defects, contra charges, retention and the effect of earlier payment notices. The most useful first step is often to separate those issues into an itemised schedule with the contractual basis, evidence and value for each item.

Where the contract is a qualifying construction contract and a dispute has crystallised, section 108 of the Construction Act gives a party a right to refer a dispute to adjudication at any time. Whether the whole final account can sensibly be referred as one dispute depends on how the issues have developed and how the referral is framed.

Can a final account be adjudicated?

Often, yes, once there is an identifiable dispute under a qualifying construction contract. The scope of the dispute and the material previously exchanged between the parties matter to jurisdiction.

What records matter most?

The executed contract, variation instructions, valuations, payment notices, programmes, extensions-of-time correspondence, site records, cost records and a clear schedule showing how the claimed total is built up.

What causes delay in settlement?

Common causes are unresolved variation entitlement, incomplete substantiation, inconsistent valuations, delay/set-off issues and parties discussing a headline number without isolating the components of disagreement.

What should a commercial team prepare?

An issue schedule identifying the amount claimed, amount admitted, difference, contractual basis, key documents, responsible witness and whether the issue affects time as well as money.

Related guidance: Read: why construction final accounts stall →

Key source: HGCRA 1996, s.108 — right to refer disputes to adjudication.

Free PDF checklist

Construction Payment Dispute Checklist

Use the checklist to reconstruct the payment cycle, review the application and notices, record service evidence and organise the material needed to assess the next step.

Download the checklist

Next step

Discuss the dispute with HQ Law

Tell us who the parties are, what has happened and any immediate deadline. We can then carry out an initial conflict check and consider the next step.

Start an enquiry Call 07843 580 112