Research On Formation Rules Of Final Account Quantities

In practical work，employer, contractor and the cost engineering consultant holddifferent attitudes to the final account methods from their own interests, but the recalculationrecord drawings method is often used in final account at completion in real work which arecaused many disputes. With the <Code of bills of quantities and valuation for constructionworks>(GB50500-2013) was enforced, the recalculation record drawings method was deniedfundamentally, but the final account rules which interim measurement and payment resultsinto final account was recommended. The new final account rule was against by theemployers. Interim measurement and payment results into final account directly is the newfinal account rules which is imitated international general practice FIDIC and combined withChina’s actual conditions. And the new final account rule has modern Chinese characteristicsobviously. The new final account rules caused the employers violent opposition, so study thenew final account rule comprehensively and point out the critical point would guide theemployer and contractor`s practical work which has practice significance.America jurist Posner point out that the most rules in legal can be translated into thelanguage of economics. So the provisions which formed the new final account rule must havethe principle of economics. This paper will study the new final account rule from theperspective of economics and law. Then, this paper will formulate the rationality andlegitimacy of the new final account rule which would reduce the employers`conflictedemotion and acceptance and implementation this new final account rule which has theimportant practical significance.To solve the problems which was mentioned before, this paper will be started from thenature of the final account from contractual obligation，contract states，contract control`sperspective to re-examine the role of the final account which would prove that the new finalaccount rule was more rationality and legitimacy against the recalculation record drawingsmethod. Besides, in the final analysis, all the disputes was concentrate on the final accountquantities. Therefore, this paper will establish the formation standard process of the finalaccount quantities by analyzing the formation of the final account quantities in Bill ofQuantities system and Contract system which would reduce the dispute in practice work. Inthe last, this paper formulates the rationality of the new final account rule by Incompletecontract theory, Transaction cost theory, Equilibrium of Incomplete Contracts and Hold-up,and this paper proves the legitimacy of the new final account rule by the legal effect of agent,procedural fairness to promote entity fairness.