Final Pay Calculation Methods

Quantity Surveyor - Final Payment Process A Quantity Surveyor (QS) plays a crucial role in managing the final payment process in construction projects. 1. Final Account Preparation: Calculate Final Quantities: The QS remeasures all the work done and updates the Bill of Quantities (BOQ) based on actual site conditions. Any variations, omissions, or additions must be reflected. Check for Variations: All variations or changes in the scope of work must be included in the final account. The QS verifies that all agreed-upon variations are correctly measured and valued. Assess Retention: The QS ensures that any retention sums (a percentage of the contract value withheld during the project for security purposes) are correctly calculated and included in the final payment. 2. Final Payment Certificate (FPC): Issuance of the FPC: Once the final account is agreed upon, the QS prepares the Final Payment Certificate (FPC). This certificate includes the final total amount due to the contractor, considering all additions and deductions (e.g., retention, penalties, variations). Verify Contractual Terms: The QS ensures that all contractual conditions for final payment have been met, including completion of work, inspection, and acceptance by the client or project manager. 3. Deductions and Adjustments: Retention Release: If the project is complete and no outstanding defects or issues remain, the QS will calculate the retention sum to be released to the contractor after the defect liability period. Penalties/ Liquidated Damages: If there are penalties for delays or other contractual breaches, the QS ensures they are deducted from the final payment. Settling Outstanding Claims: The QS helps resolve any outstanding claims, ensuring they are accounted for in the final payment. 4. Final Inspection and Handover: Snagging: The QS may assist in organizing a final inspection or snagging 5. Approval and Payment: Submit Final Payment Certificate to Client: The QS submits the Final Payment Certificate to the client or employer for approval. Monitor Payment: The QS tracks the payment process to ensure the contractor receives the agreed amount. Example: Project Name: Commercial Office Building Contract Value: AED 10,000,000 Retention Amount: AED 500,000 Variations: AED 200,000 (addition for extra works) Penalties for Delay: AED 50,000 Final Payment Calculation: Initial Contract Value: AED 10,000,000 Add: Variations: AED 200,000 Less: Penalties: AED 50,000 Less: Retention: AED 500,000 Total Due: AED 9,650,000 The QS would issue the Final Payment Certificate for AED 9,650,000, which includes the contractor's final payment after all deductions and additions. Key Documents the QS Handles for Final Payment: 1. Final Account Summary 2. Final Payment Certificate 3. Variation Orders 4. Retention Calculation Sheet 5. Completion Certificate 6. Defects Liability Period Report (if applicable) 7. Handover Documents (Warranties, Operation Manuals, etc.)

Quantity Surveyor - Final Payment Process:- ✓A Quantity Surveyor (QS) plays a crucial role in managing the final payment process in construction projects. 1. Final Account Preparation: ✓Calculate Final Quantities: The QS remeasures all the work done and updates the Bill of Quantities (BOQ) based on actual site conditions. Any variations, omissions, or additions must be reflected. ✓Check for Variations: All variations or changes in the scope of work must be included in the final account. The QS verifies that all agreed-upon variations are correctly measured and valued. ✓Assess Retention: The QS ensures that any retention sums a percentage of the contract value withheld during the project for security purposes) are correctly calculated and included in the final payment. 2. Final Payment Certificate (FPC): ✓Issuance of the FPC: Once the final account is agreed upon, the QS prepares the Final Payment Certificate (FPC). This certificate includes the final total amount due to the contractor, considering all additions and deductions (e.g., retention, penalties, variations). ✓Verify Contractual Terms: The QS ensures that all contractual conditions for final payment have been met, including completion of work, inspection, and acceptance by the client or project manager. 3. Deductions and Adjustments: ✓Retention Release: If the project is complete and no outstanding defects or issues remain, the QS will calculate the retention sum to be released to the contractor after the defect liability period. Penalties/ Liquidated Damages: ✓If there are penalties for delays or other contractual breaches, the QS ensures they are deducted from the final payment. Settling Outstanding Claims: ✓The QS helps resolve any outstanding claims, ensuring they are accounted for in the final payment. 4. Final Inspection and Handover: Snagging: ✓The QS may assist in organizing a final inspection or snagging 5. Approval and Payment: Submit Final Payment Certificate to Client: ✓ The QS submits the Final Payment Certificate to the client or employer for approval. Monitor Payment: ✓ The QS tracks the payment process to ensure the contractor receives the agreed amount. Example: Project Name: Commercial Office Building Contract Value: SAR 10,000,000 Retention Amount: SAR 500,000 Variations: SAR 200,000 (addition for extra work) Penalties for Delay: SAR 50,000 Final Payment Calculation: Initial Contract Value: SAR 10,000,000 Add: Variations: SAR 200,000 Less: Penalties: SAR 50,000 Less: Retention: SAR 500,000 Total Due: SAR 9,650,000 The QS would issue the Final Payment Certificate for SAR 9,650,000, which includes the contractor's final payment after all deductions and additions. Key Documents the QS Handles for Final Payment: 1. Final Account Summary 2. Final Payment Certificate 3. Variation Orders 4. Retention Calculation Sheet 5. Completion Certificate 6. Defects Liability Period Report (if applicable) 7. Handover Documents (Warranties, Operation Manuals, etc.)

Let’s talk numbers—specifically, how to calculate your daily salary rate in the UAE. I know—salary calculations can feel confusing, especially with multiple methods floating around. But here’s the good news: it’s actually pretty straightforward once you know the two main formulas. In the UAE, there are two ways to calculate your daily rate: Calendar Day Formula (Law Prescribed) Working Day Formula (Practice-Based) Calendar Day Formula This method is grounded in UAE labor law. Use a 30-day basis for monthly salary and 365-day basis for annual salary. Example: Monthly Salary (fixed allowances included) / 30 = Daily Rate Annual Salary / 365 = Daily Rate Working Day Formula This method varies based on your workweek: 5-day workweek: Divide by 22 6-day workweek: Divide by 26 Example: Monthly Salary (including allowances) / 22 = Daily Rate Perfect for calculating pay if someone joins mid-month or has unpaid leave. As the workforce becomes more dynamic, consistency in using one method for payroll and salary recovery is key. Whether it's for new joiners, calculating probationary pay, or recovering unpaid days, choose your formula and stick to it. If you’re an employer, being consistent with your formula helps avoid confusion and ensures transparency. Plus, it’s essential for compliance during audits or employee disputes. Got questions on salary calculations? Let’s discuss in the comments! #UAEHR #PayrollManagement #SalaryCalculations #UAEEmploymentLaw #WorkforceManagement #HRBestPractices #DailySalaryCalculation