A contractor`s closing statement is a document that outlines all the expenses and fees associated with a construction project. It is usually created at the end of the project, just before the final payment is made. The contractor`s closing statement is typically used for accounting purposes, as it helps to ensure that all costs have been accounted for and that the project has been completed within the agreed-upon budget.
The closing statement typically includes a breakdown of all the costs associated with the project, including labor, materials, subcontractor fees, equipment rentals, permits, and any other expenses that were incurred throughout the project. It should also include any change orders or other modifications made to the original project plan.
Additionally, the contractor`s closing statement can include any lien waivers or other legal documents that need to be signed by the client before final payment can be made. The closing statement is often accompanied by a release of lien, which indicates that the contractor has been paid in full and that they will not pursue any further claims against the project.
Why is a Contractor`s Closing Statement Important?
A contractor`s closing statement is an essential document for both the contractor and the client. For the contractor, it helps to ensure that all expenses have been accounted for and that they are paid in full for their work. It also helps to protect the contractor from any legal action that may be taken against them in the future.
For the client, the closing statement provides a transparent breakdown of all the costs associated with the project and ensures that they are not being overcharged for any services. It also serves as a final document that shows that the project has been completed and paid for in full.
In summary, a contractor`s closing statement is a crucial document that helps to ensure that a construction project has been completed within the agreed-upon budget and that all expenses have been accounted for. It provides transparency for both the contractor and the client and serves as a final document that shows that the project has been completed and paid for in full.
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