How long does a main contractor typically have to agree a subcontractor's final account?

The timeframe depends on the subcontract terms. Under most JCT Subcontract forms, both parties have defined periods to submit and respond to final accounts - typically three to six months after the subcontractor's practical completion. Starting the process before those deadlines rather than at them reduces the risk of disputes and time-bar issues.

What happens if the subcontractor and main contractor cannot agree on the final account?

Most standard subcontracts include a dispute resolution mechanism, typically adjudication under the Housing Grants, Construction and Regeneration Act 1996. Either party can refer a dispute to adjudication, and a decision is typically issued within 28 days. The decision is temporarily binding and must be paid while any further proceedings continue.

Should retention appear separately or as part of the total in the final account statement?

Show retention separately. The statement should display the agreed final contract value, less retention held, equaling the net sum currently due. Retention release is then documented and paid separately when the defects liability period ends, rather than being bundled into the final account payment.

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Workflow Scenario

Construction - Managing a Subcontractor Final Account

Every variation counted. Every backcharge applied. Every penny agreed.

Step by step

Reconcile the variation logPurchase Orders

Pull the original subcontract PO and compare it against the job cost record, listing all variations raised and confirming which are agreed.

Identify and document backchargesJobs

List any backcharges to apply against the subcontractor - defects remedied, welfare failures, delay costs - ensuring each has supporting documentation.

Request the sub's final account submissionMentions

Send a formal written request for the subcontractor's final account, specifying the deadline and required backup documents.

Review the submission line by lineJobs

Check the subcontractor's submission against your own records, separating agreed items from disputed ones so payment can proceed on agreed elements.

Hold the final account meetingJobs

Meet with the subcontractor to resolve outstanding discrepancies, agree the final sum and retention release schedule, and document the outcome.

Prepare and sign the final account statementContracts

Produce a signed final account statement covering the agreed sum, adjustment basis, and retention release terms. Both parties sign before any final payment.

Process the final payment and close the POInvoices

Raise or approve the final invoice against the agreed sum, update the job cost record, and close the subcontract purchase order.

What this workflow solves

By the time we try to close a subcontractor's final account, the variations have never been properly logged and we're relying on email trails from months ago to work out what was agreed.

Subcontractors submit final invoices that include items we've never formally agreed to, and we end up in a dispute because we don't have a clear record of what was instructed and what wasn't.

We struggle to track which subcontractors have retention held and when it needs releasing - it gets paid out late and damages the relationship, or we forget to deduct it and it costs us money.

Frequently asked questions

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