QS Final Accounts
QS Final Accounts
QS Final Accounts
NOTES
FOR
QUANTITY
SURVEYORS
Final Accounts
Preface
Preface
A Working Committee with representatives of the Hong Kong Institute of Surveyors,
the Association of Consultant Quantity Surveyors and the Hong Kong Construction
Association was set up in October 2010 to establish a set of Practice Notes for the benefit
of Quantity Surveying professionals in Hong Kong.
The Practice Notes are not intended to promulgate a standard of practice, but rather to
produce some basic guidelines for the following core practices:
Name of Practice Notes
Latest Version
Nov 2014
Procurement
Nov 2014
Tendering
Nov 2014
Nov 2014
Nov 2014
Valuation of Variations
Nov 2014
Nov 2014
Nov 2014
As different client organisations will have their own procedures and requirements, the
Practice Notes, which are prepared mainly for private sector projects using the HKIA/HKIS
Standard Forms of Building Contract, should be adapted as appropriate.
The members of the Working Committee are: Current Members from 2013
Representing the Hong Kong Institute of Surveyors
Sr Honby CHAN (Chairman)
Sr Joe WU
Sr Sandy TANG
Sr Amelia FOK
Preface
Representing the Association of Consultant Quantity Surveyors
Sr CHAN Choi Hing
Sr S C TSE
Sr Ringo LUI
Sr Rachel LEE
Representing the Hong Kong Construction Association
Sr FUNG Chi Yiu
Previous Members from 2010 to 2012
Representing the Hong Kong Institute of Surveyors
Sr Raymond KONG (Chairman)
Sr SO Chee Sing
Sr Sandy TANG
Sr Amelia FOK
Representing the Association of Consultant Quantity Surveyors
Sr Kenneth POON
Sr CHAN Choi Hing
Sr Amen HOR
Representing the Hong Kong Construction Association
Sr FUNG Chi Yiu
Sr Patrick LO
Sr YU Lap Chu
The Working Committee expresses its gratitude to the following HKIS members in the
Architectural Services Department and the Housing Authority for sharing their experience
in and knowledge of Quantity Surveying practice in the public sector for the improvement
of the document.
Professional Quantity Surveyor from the Architectural Services Department
Sr Alvin CHAN
Professional Quantity Surveyor from the Housing Authority
Sr James FUNG
Final Accounts
Final Accounts
1.
General
The Final Account is a summary of the financial effect of all activities
carried out under the Contract. Clause 32.6 of the HKIS Standard Form
of Building Contract (2005 Edition) requires the Quantity Surveyor
to prepare the final account within the period stated in the Appendix
(normally 12 months from substantial completion of the whole of the
Works).
To provide effective post contract cost control and to expedite the
settlement of final accounts, Quantity Surveyors shall aim at having
periodic cost review meetings with the Contractors to settle the
valuation of instructed variations.
2.
Variations
(A) General
(a)
(b) To identify early any potential claims related to the
variations;
(c)
(d)
Final Accounts
(B) Methodology
(a)
(i)
(ii)
(b)
(i)
(ii) If the works are similar but not the same, the
contract rate should be used as the basis for
forming a pro-rata rate;
(iii) I f t h e w o r k s a r e o f a d i f f e r e n t n a t u r e , a f a i r
valuation should be made for the variation
works using star rates.
Final Accounts
(a)
(b) ensure that all measurements taken are properly recorded.
Each page entry must have the date of the m e a s u r e m e n t
recorded against it.
(c)
3.
Remeasurements
The Quantity Surveyor should remeasure all provisional quantities in
the Bills of Quantities as soon as the For Construction drawings are
issued to the Contractor for implementation.
Final Accounts
A copy of the remeasurement, duly priced should be issued to the
Contractor for his information as soon as it is available.
It is bad practice to wait for works to be completed before doing the
remeasurement. Early remeasurement once construction drawings
are available will give a chance to the Client to revise the design if the
remeasurement shows a budget over-run.
4.
Contractual Claims
(A) General
(a)
(b)
(c)
(d)
(e)
(f)
Final Accounts
(g)
(h)
The above list is not exhaustive and claims can always be made
under other contractual grounds. (See also Good Practice Notes
on Handling Contractual Claims for more details.)
(a)
(b)
(c)
Final Accounts
events (commonly known as neutral events) for which the
Contractor may be entitled to an extension of time, but not
prolongation costs, such as the following:
5.
force majeure;
inclement weather;
fire;
civil commotion, etc.;
As a general rule the Employer will only be liable for loss and
expense incurred by the Contractor when it is caused by acts for
which the Employer or his agents are responsible.
6.
Final Accounts
comments and return to them before the meetings for their advance
information.
It should be noted that the Quantity Surveyors duty regarding the
Final Account is primarily to make fair and proper assessments of all
changes made in accordance with the contract provisions. Whether
the assessments are agreeable to the Contractor should not be a factor
influencing the Quantity Surveyors assessment.
Most Standard Forms of Contract have a provision that the Contractor
should submit all his claims and substantiations within a certain
period. The Quantity Surveyor should check this period and formally
write to the Contractor advising him to comply with it as the Quantity
Surveyor may refuse to accept any further submissions after this date.
When all claims and substantiations made have been taken into
consideration by the Quantity Surveyor and negotiations held with the
Contractor prove to be of no avail, the Quantity Surveyor may seek the
Clients consent and support before proceeding to unilaterally close
out the final account.
A report on the non-agreed items should be prepared listing the items,
the Contractors figures versus the Quantity Surveyors assessed
figures, the arguments given by the Contractor and the Quantity
Surveyors judgments on why their arguments were not accepted.
Note that it is not normally a contractual requirement that the Final
Account needs to be agreed by the Contractor. This is only good
practice. In situations where agreement cannot be reached, the
Quantity Surveyor should prepare a Recommended Final Account
incorporating a report on non-agreed items and issue it to the Client
with a recommendation to either intervene to reach a settlement with
the Contractor or unilaterally close out the Final Account by issuing
the Final Certificate.
Final Accounts
7.
8.
1.
Architects Instructions
2.
3.
4.
5.
6.
7.
Fluctuations Adjustment
8.
Contractual Claims
9.
Others
10
Nov. 2014