The main differences are as follow:
Ⅰ.concepts of engineering settlement and completion settlement
1. Engineering settlement is to calculate the actual cost price after
inspection and completion of the project. This price is verified with the
pricing methods stipulated in the contract after adjusting actual
engineering quantity, equipment and price difference of material;
2. The contractor prepares the engineering settlement and submits it
to the contract deliverer for inspection. This engineering settlement
may be entrusted to a consultation institute having corresponding
cost qualification for inspection;
3. The completion settlement includes the general expense
which is from the project establishment to putting into the
operation, it reflects the project’s actual price and investment result,
it also is the important part of the engineering inspection report;
4. The completion settlement is prepared by the project owner;
5. The content of the completion settlement includes the
explanation of completion settlement and the financial
statements, charts of the completed project etc.
Ⅱ. Different body
1. Difference between two bodies: The engineering settlement is prepared by the project contractor and inspected by the contract deliverer; the completion settlement is prepared by the project owner and submitted to the competent department for inspection;
2. Different time: The completion settlement only can be
prepared after finishing the engineering settlements;
3. Different scope: The engineering settlement is the engineering prices verified during construction stage; the completion settlement not only includes the prices verified during construction stage, but also includes preceding & subsequent expenses of the project, such as feasibility study fee, evaluation fee of environment security, exploration design fee and verification fee of project completion etc.;
4. Different target: The engineering settlement is the project contractor charges project owner for the engineering price and reflects the working result of the project’s construction stage; the completion settlement reflects the final result of the project’s construction. The engineering settlement is the settlement for project contractor to settle with the construction unit, the purpose is to verify quantity, price and paying amount of engineering; the completion settlement is to collect the project’s total investment,
to list detailed assets formed during project construction and to amortize relevant expenses to assets for an enterprise to manage these assets easily.
Generally speaking, engineering settlement is to calculate the project price for the project contract contractor to pay to the construction unit, the completion settlement is to verify the amount of total assets formed in the project construction.
Writer: Huirong Wang of engineer department