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Last edited 12 Mar 2016

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Final certificate for construction contracts

The final certificate is certification by the contract administrator that a construction contract has
been fully completed. It is issued at the end of the defects liability period and has the effect of
releasing all remaining money due to the contractor, including any remaining retention.

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Contract administrator.
Defects liability period.

The value of the final certificate will be based on the final account agreed by the cost consultant

Final account.

and the contractor. This means that all patent defects must have been remedied, all adjustments

Housing Grants, Construction and Regeneration


to the contract sum must have been agreed and all claims settled.

Where proceedings have been commenced in relation to a dispute, the conclusiveness of the final

Interim certificates.

certificate is subject to the findings of those proceedings. In addition, the final certificate itself can

Sectional completion

be disputed (usually within 28 days). Adjudication, arbitration or other proceedings may then be
necessary to resolve the dispute. The final certificate is then only conclusive in relation to matters
that are not disputed.

If the client intends to pay a different amount from that shown on the certificate, then they must

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give notice to the contractor of the amount they intend to pay and the basis for its calculation
(pay less notice - see Housing Grants, Construction and Regeneration Act for more information).

Cycling and walking plan

Alternative procedures

In design and build contracts (such as Joint Contracts Tribunal (JCT) DB 05) the final certificate
may be described as the final statement.

In construction management contracts, where there are a number of trade contracts, final
statements are issued for each trade contract. Once final statements have been issued for each
trade contract, the construction manager co-ordinates preparation of the final report and issues

Department for Transport's plans to turn the

the final certificate for the whole project.

UK into a 'cycling and walking nation' are

"frankly embarrassing" according to experts.

There is a similar procedure on management contracts, where final certificates are issued by the
management contractor for each individual works contract, and then once all works contracts
have received a final certificate, the management contractor provides the client's contract

Unusual building design of the week

administrator (or cost consultant) with information allowing them to calculate the prime cost (the
cost of the works contracts) and a final certificate is issued to the management contractor.

Find out more

Related articles on Designing Buildings Wiki

Contract administrator.
Defects liability period.
Final account.
Housing Grants, Construction and Regeneration Act.
Interim certificates.
Sectional completion




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