Final Liquidation Account

The final liquidation account is the procedure by which, upon the liquidation of a contract, all the works carried out by the contractor up to that date, any material differences, price differences and other costs are finally calculated, bringing to an end the relationship of debt and claim between the parties. It is prepared on the basis of the provisional liquidation record and the final measurements, and completes the financial closure of the contract by establishing the difference between the progress payments made to the contractor and its total claims.