Mine Owners and Contractors Need a Better Final Account Discipline

Mining final accounts are often large, technical and emotionally charged. By the time the project reaches close-out, the parties may be dealing with disputed variations, extension of time claims, acceleration costs, prolongation costs, measured quantity changes, productivity losses, defects, incomplete records, retention, performance issues and unresolved subcontractor claims. If these matters were not managed progressively, the final account becomes a reconstruction exercise rather than a commercial close-out process.

The problem usually starts earlier. Site teams proceed with work to maintain progress. Variations are discussed but not valued. Delay notices are issued but not developed. Subcontractors submit claims late. Cost reports show actual spend but not entitlement. Meeting minutes record disagreement without decision. By the end, both parties have different versions of the account.

Mining final account discipline should begin at mobilisation. Each change should be logged, classified, valued, assessed and closed where possible. Delay events should be connected to schedule updates and contemporaneous records. Payment applications should identify pending and disputed items. Commercial meetings should focus on ageing issues, not only current month payment. Senior management should see unresolved exposure before it becomes a dispute.