Account Stated for Construction Work
What is this form?
The Account Stated for Construction Work is a legal document that formalizes the agreement between a contractor and an owner regarding payments made for construction services provided. This form is used to clarify the amounts owed based on previous transactions and to establish a final statement of account. Unlike other forms that just list invoices or payments, this account stated specifically confirms the balance due and the context of prior transactions related to construction work.
Form components explained
- Identification of the parties involved (Owner and Contractor).
- Acknowledgment of the completed work and payments made.
- Specification of the amounts owed by the Owner to the Contractor.
- Clear statement of the context for payments and unpaid accounts.
When to use this document
This form is appropriate to use after the completion of construction work when both parties have engaged in multiple transactions involving payments for labor and materials. It is particularly useful when there is a need to formally document any outstanding balances and to minimize disputes regarding payment amounts. The Account Stated can also serve as a basis for further legal action if payments are not settled.
Who should use this form
- Contractors who have provided construction services and are awaiting payment.
- Property owners who have engaged contractors for construction work and need to clarify payment status.
- Parties involved in construction projects that require a formal accounting of transactions.
Instructions for completing this form
- Identify and clearly state the names and roles of the parties involved: Owner and Contractor.
- Detail the construction work completed along with the relevant payment history.
- Specify the total amount currently owed by the Owner to the Contractor as of the date of the form.
- Sign and date the form by both parties to confirm the accuracy of the stated accounts.
Does this document require notarization?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Failing to include all relevant transactions between the parties.
- Not updating the form to reflect the most recent payments.
- Leaving out the signatures and dates, which are essential for legal validity.
- Using vague language that can lead to misinterpretations of payment amounts owed.
Advantages of online completion
- Convenient access to download and complete forms at your own pace.
- Editable templates allow for easy updates and customizations.
- Access to forms drafted by licensed attorneys, ensuring legal accuracy.
- Time-saving compared to traditional methods of form acquisition.
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FAQ
There are two generally accepted accounting methods used to account for construction contracts; the percentage of completion method (PC) and the completed contract method (CC).
The most common way to defeat an action for account stated is to show that the debt claimed is new, i.e., that there was no prior course of dealing between the parties or, at best, only a very short period with very few transactions.
Definition. A statement between a creditor and a debtor that settles the total amount of debt owed to the creditor.
Revenue from fixed price construction contracts is recognised on the percentage of completion method, measured by reference to the percentage of labour hours incurred upto the reporting date to estimated total labour hours for each contract.
The chart of accounts is simply the organized list of all the bins and shelves. Month end financial statements (balance sheet and income statement) simply summarize and group the balances that are in the individual accounts at month end.
