Reviewing the final account of lump-sum contracts: adjust only the agreed-adjustable content on the contract total, plus the universal checkpoints, plus the compiling method by contract type

Topic Positioning

The review method for final accounts of lump-sum contracts (lump-sum-capped included) - what is reviewed on the contract total, what does not adjust, and the checkpoints common to all contract forms. For consultancy settlement review, employer re-checking and contractor self-audit.

Core Conclusions

1. Review method for the lump-sum mode (T/ZBD 100.5-2023 Guidance for Settlement Review Practice, clause 3.1.5): on the contract total, verify the correctness of the adjustments for contract-agreed adjustable content and for risk factors beyond the agreed scope, focusing on: 1 From the contract's measurement and pricing clauses and risk-scope clauses, judge the non-adjustable part of the contract price; review adjustments only within the adjustable range. 2 Against the non-adjustable part, check whether the settlement drawings, contract scope and acceptance reports match the contract-price content; unexecuted or inconsistent parts are generally written down, matching parts enter the settlement price directly. 3 Absent special circumstances, BOQ gaps and quantity issues in a lump-sum contract are deemed fully verified by the contractor before signing and draw no supplementary adjustment - unless the employer issued the tender BOQ and the contract declares them adjustable. Variations, claims and additional works adjust per the contract. 4 Check the material acceptance slips: brands or quality above contract without employer request add nothing; above contract at employer request re-price on actual use and adjust; below contract re-price down. 5 Check the statutory HSE provisions, other preliminaries and statutory levies against policy with the contract and method statement; agreed non-adjustable preliminaries are not adjusted again; where floor area and the like adjust, vertical transport and superheight increment follow the contract's pricing for those items. 6 For employer-direct specialist packages and provisional sums for specialist works inside the contract, verify the package / main-contractor interface - overlapping parts are written down after written clarification with the employer. 7 For provisional material prices, check the approved-price slips and adjust per the contract - the adjustment usually touching materials and tax only. 8 For employer-supplied materials and metered water and electricity, compare strictly against contract quantities and deduct from the settlement; shortfalls are analysed and adjusted per the contract; over-drawals without back-orders or supplementary agreement are not counted and deducted. 9 Rewards, penalties and other adjustable price clauses adjust per the contract. 10 Statutory levies and VAT fix or adjust per the contract and the law at execution.

2. Universal checkpoints (clause 3.1.4, any contract form): 1 Scope changes: verify the works as built against the completion records; check the settlement scope against the contracted scope and content; check the settlement drawings against the priced BOQ with site inspection - noting especially the preliminaries and statutory levies when whole divisional items drop from scope or become specialist packages. 2 Work interfaces: watch for vague or overlapping splits between packages and main contractors; issues go to the employer in writing with written, sealed replies. 3 Whether quantities need re-determination: unit-rate contracts without re-measurement or interim settlement during construction re-compute the original quantities on the settlement drawings; once re-measured or interim-settled, quantities are not recomputed unless both parties agree; works found unexecuted at completion are written down from the priced BOQ. 4 Gaps: gaps in an employer-issued tender BOQ settle on the quantities confirmed from the as-built drawings and certified records under the contracted pricing method, entering the divisional or preliminary charges - except where lump-sum pricing allowed the contractor to adjust and price the tender BOQ. 5 Provisional specialist works: the provisional prices in the original contract price never serve as settlement prices; each specialist package settles under its own contract, verifying scope, content, quality, quantities and price, and forms the base for main contractor's attendance. 6 Provisional material or plant prices: verify the approved-price confirmations per the contract; unpriced items undergo price confirmation afresh. 7 Employer-supplied materials: verify whether the contract provides them, the metered water and electricity, and their settlement method.

3. Compiling method by contract type (DB37/T 5130-2018 Code for Construction Cost Consultancy Services, clause 8.2.5): lump-sum contracts adjust, on the total, the contract-agreed adjustable content and the risk factors beyond the agreed scope; unit-rate contracts hold the all-in unit rates fixed within the agreed risk band and measure per the contract on the quantities actually completed; cost-plus contracts compute the works cost, the fee and the taxes per the agreed method.

4. Settlement basis (GB/T 50326-2017 clause 18.3.3): the contract documents; as-built drawings and variation documents; the technical and material-substitution approvals; the pricing documents and BOQ; the jointly confirmed certified records and claim materials.

Applicability Boundaries

• Clause 3.1.5 addresses lump-sum settlement review; clause 3.1.4's checkpoints serve any form.
• The contract prevails throughout (whether gaps, preliminaries or quantities re-measure).
• Deductions of employer-supplied materials and metered utilities follow contract quantities.
• DB37/T 5130-2018 is a Shandong local standard; local wording may differ - follow the project location's current standard.

Further Reading

T/ZBD 100.5-2023 Guidance for Settlement Review Practice, clauses 3.1.4 (universal checkpoints) and 3.1.5 (lump-sum review focus); DB37/T 5130-2018, clause 8.2.5 (compiling by contract type); GB/T 50326-2017 Code for Construction Project Management, clause 18.3.3 (settlement basis). Quantity determination per GB/T 50500-2024 clauses 7.1.1, 7.1.8, 10.3.1; lump-sum BOQ defect risk per GB/T 50500-2024 clauses 4.1.6, 7.2.2, 8.2.3, 3.3.3.