 Final payment is the last payment to be

made by the employer to the contractor

(or by the contractor to the
employer)after the completion of the
work
 It shows the final contract sum or the
total cost of the completed job to the
employer.
 Clause Description
Clause 28.0 Payment to the contractor and interim
certificate

Clause 30.0 Fluctuation of price

Clause 31.0 Final account and payment certificate
Clause 32.0 Effect of S.O.’s certificate
Clause 33.0 Deduction from money due to contractor
Clause 34.0 Prime cost / provisional sums
Clause 48.0 Defect after completion
 CLAIM prepared
by contractor

CLAIM checked
by S.O.

FINAL CERTIFICATE
prepared by S.O
≤30
Days

PAYMENT made
by employer
 contractor is The contractor
The claims should be
responsible to should include all
submitted as soon as
submit claims to claims in his claim
possible to the S.O.
the S.O. document

The claim document

The S.O. should only
No more claims will be should be
consider substantiated
entertained after the accompanied with
claims that are submitted
expiry of the 3 months sufficient and accurate
within the stipulated time
period. documentations to
for final account.
substantiate the claims.
 The claims include information for:
a. Loss and expense caused by delay
under Clause 44
Claims for loss and
The causes of delay expenses that can be
include: considered are for the loss
and expenses:
• Suspension of works • Which the contractor
• Disputes with would not be paid under
neighbouring owners any other provisions of the
• S.O.’s instructions contract
• The contractor does not • Which the contractor had
receive the necessary given written notice of his
information on time intention to claim within
the stipulated time
• Delay by others executing
works not forming part of • i.e. within 30 days of the
the contract occurrence of such
events
The contractor is responsible to submit all supporting
documents regarding claim for loss and expense
and account of nominated sub-contractors for
preparing the final account within the 3 month period

The employer will prepare the final account on the

available information furnished by the contractor
within the stipulated time.

The S.O. does not have to consider the supporting

evidence given after 3 month period.
 Upon the expiry of
Defects Liability
Period, an inspection
will be conducted by
the S.O.
If there is no further
After the issuance of
defect , the Final
the Certificate of
Certificate must be
Practical
issued within 3 month
Completion, the
after the expiry of
process for the final
Defect Liability
payment can start.
Period.

clause
31.3 in
PWD 203A
 If during the inspection This schedule must be
there were any defect issued to the contractor
found, the S.O will within 14 days after the
prepare schedule of end of Defect Liability
defect. Period.

Within 3 month after the

The contractor are
issuance of the
responsible to make
Certificate of Completion
good the defects within 3
of Making Good Defects,
months after receipt of
the Final Certificate must
the Schedule of Defect.
be issued.

The certificate must be

issued on time. It is
considered as breach of
contract if the employer
cannot do it on time.
 For
government
project
(KPKR’s
circular
dated 20
September
2000)

If the employer
have to make Final Certificate must
good any defect, be issued within 6
he can claimed month after the
any cost incurred issuance of Certificate
from the of Practical
Performance Completion.
Bond.
PWD 203 A clause 31.4
•Final Certificate is the statement of
all the final valuation
•Employer should pay to contractor
all work done by him and also loss
and expenses incurred by him
 Final
contract
The contractor sum or the
can go to total cost of
arbitration if he the
is not satisfied completed
with the Final job
The deductions are for :
Certificate.
•All amount previously
paid by the employer
to contractor
•All sums to which the
employer is entitled
The contents
of the
certificate
are

• S.O can deduct

money for cost of The balance, if
making good any, due from
defect ,decrease in the employer
value of work and to the
LAD from the contractor or
payment to from the
contractor contractor to
the employer
 PWD 203A
clause
31.4 and
32.0

All necessary
adjustment to
the contract sum
such as all
As an evident variations and
that the works The final claims has been
have been payment is not done
properly carried considered as accordingly
out and final and
completed conclusive if the
dispute is
brought to
arbitrator or
court.
 Defects which would not
have been disclosed by
reasonable inspection
before issuance of
certificate

The
certificate
can be
challenged if

Arithmetical Fraud in the

errors in the preparation of
computation of the certificate
account
 PWD
203A
clause
31.4

If the final
contract sum
exceeds the total
amount paid to
the contractor,
If there is no the excess shall
period stated in be paid to the
the Appendix, contractor by the
the period is employer
within 30 days It is the last
after the issuance certificate
of the certificate.
 Before releasing
the final payment,
the S.O. has to
make sure that
the contractor
has

Paid the Made all

workers’ This is to necessary
wages safeguard contributions
the interest of to the
the workers authorities
 Clause 24.1 - Loss
Clause 27.7 - Final
Clause 15.0 - Clause 22.0 - and/or expense
payment to
Practical completion Damages for non- caused by matters
Nominated Sub-
and defects liability completion affecting regular
Contractors
progress of the works.

Clause 28.6 - Clause 30.12 -

Clause 30.10 - Final Clause 30.11 - Items in
Payment to Conclusiveness of the
account Final Account
Nominated Suppliers Final Account

Clause 30.15 - Final

Clause 30.14 - Issue of Clause 30.15 - Final
Certificate not
Final Certificate Certificate
conclusive

*Similar provisions as P.W.D. Form 203A (Rev. 2007).

“ Within six (6) Months after Practical
Completion of the Works, the Contractor
shall send…. all documents necessary for
preparing the Final Account, …. The Final
Account shall be completed within six (6)
months from receipt of all documents from
the Contractor. The period of completion of
the Final Account shall be adjusted if there
is any delay by the Contractor in sending
the necessary documents…” (Clause 30.10)
 The contractor is responsible to make all
claims required for the preparation of the
final account.

 The claims should be submitted within 6

months after the issuance of the Certificate
of practical completion

 The Final Account must be completed

within 6 months after the Architect had
received the necessary documents from
the contractor as shown in Figure 5.
•If there is delay on the part of the contractor in submitting the
necessary documents to the Architect, the period for completing the
Final Account will be adjusted accordingly

•E.g if the contractor takes 8 months to submit all the necessary

documents then the period to complete the Final Account become
14 months instead of 12.
“…..the Contractor fails to submit all documents
necessary for preparing the Final Account, the
Architect … complete and issue the same
based on the information available within the
Period to complete the Final Account …”
(Clause 30.10)

 If the contractor does not provide all the

necessary information, the Final account must
still be completed and issued by the Architect
within the Period to complete the Final
account stated in the Appendix
‘ The following shall not be included ……’ (Clause
30.11)

 Items not considered in the Final account are the

deduction for :

Liquidated damages

Set- off by the employer

Interest payable by either party

 These matters are to be resolved separately by the
employer and the contractor. The employer may
recover the payment for those items :
as a debt from any monies from
due or to become Performanc
due to the e bond
contractor

 The contractor’s agreement to the Final account is

not required. The contractor can bring the matter to
arbitration later if he is not satisfied with the Final
account.
‘ If nothing in the said Final Account is disputed…. within three
(3) months from the date of receipt of the Final Account…..
conclusive and agreed by the parties.’

 Both parties are given the opportunity to contest the Final

Account prepared by the Architect.

 If the Final Account is not disputed by either party within 3

months after its issuance, the Final account is considered
conclusive and agreed by the employer and the contractor.
 ‘…… the party disputing the Final Account….
written notice to the other party….. within three
(3) months of the date receipt of the Final
Account… The Architect or Quantity Surveyor
within three (3) months from the date of receipt
of the grounds or dispute shall either amend or
not amend the Final Account. Any party
disagreeing….. shall refer the dispute to
arbitration…. within three (3) months from the
date of receipt of the amended Final
Account…. failure to refer the dispute to
arbitration…. deem to be conclusive and
agreed…’ (Clause 30.10 (b))
Within 3 months after receiving the Final
account – either party can send notice
stating the grounds of disputes to the other
party with copies to the Architect and the QS.

Within 3 months after receiving the notice –

the Architect/ QS will decide to amend or
not to amend the Final account.

Within 3 months after receiving the amended

Final account or decision not to do any
amendment :
The disagreeing party refers the dispute to
arbitration.
If not – the original Final Account or the
amended Final Account as decided b the
Architect/QS is considered conclusive and
agreed by both parties.
‘ The final certificate shall be issued:’
30.14(a) within twenty one (21) Days after the
Period of Honouring Certificate for the
payment of the Penultimate Certificate
;or
30.14(b) within twenty eight (28) Days after the
Certificates of Making Good
Defects
has been issued, in the event no
Penultimate Certificate has been issue ‘
(Clause 30.10)
 Penultimate certificate can be issued within 14 Days after the
issuance of the Certificate of Making Good Defects.
 In this case, Final certificate is issued 21 Days after the period
of honouring certificate as in figure … period of honouring
certificate is 21 days from the date of the certificate, if none
stated in the Appendix.
END OF SCHEDULE OF
PENULTIMATE FINAL
D.L.P DEFECTS MAKING CMGD
CERTIFICATE CERTIFICATE
GOOD DEFECTS

≤ 14 days ≤ 28 days ≤ 14 days ≤ 14 days ≤ 21 days ≤ 21 days

Figure E: Issuance of Final Certificate after Penultimate

certificate
• If there is no Penultimate certificate, Final
certificate is issued within 28 days after the
issuance of Certificate of making good defects as
shown in figure F:
END OF SCHEDULE OF FINAL
D.L.P DEFECTS MAKING CMGD
CERTIFICATE
GOOD DEFECTS

≤ 14 days ≤ 28 days ≤ 14 days 28

28days
days

Figure F : issuance of Final Certificate after

C.M.G.D