Accepting the contractor's work: the handover certificate

The contractor has finished, brought the report and says "please sign". A signature often marks the boundary of payment and liability: once the certificate is signed, objecting becomes much harder. So accepting the work needs the same care as the count itself. Often only the first page of the report is read and the rest is left for later, yet the flaws turn up on the later pages. It is better to go through this step by step and without hurry.

What goes into the certificate

The form of a handover certificate differs from company to company, but its content usually includes:

• the parties, the contract and the period of the count;
• the volume of work done: sites, zones, number of items and places not counted;
• documents handed over: the report, count sheets, an Excel or 1C file, photographs;
• a short summary of results, with the full figures kept in the report;
• departures from the brief and limitations (for example, a locked room was not counted);
• the accepting party's objections or a note that there are none;
• the date and both parties' signatures.

The certificate does not replace the report; it refers to it. If figures are repeated in two documents, a gap can appear between them, so the certificate keeps only the main totals and a reference to the report. For the exact form of the document and its legal effect, ask your chief accountant and a lawyer.

Who carries out the acceptance

Do not leave acceptance to one person. On the client's side it usually involves the chief accountant or a representative who can read the report closely, the warehouse manager who knows the storage places, and the manager who takes the decision. Someone present on count day also helps: they remember what happened in each zone. Set aside separate time: a report skimmed at the end of the working day is not a check.

How to check the report before signing

These six steps usually take a day or two:

1. Compare the scope with the brief: are all sites and zones there, and are the places not counted listed?
2. Check that the totals agree: the figures on page one must equal the totals in the file and on the count sheets.
3. Recount a sample: have your own employee recount 20–30 randomly chosen items and compare them with the report.
4. Review the list of differences: large ones show the place and amount, and the codes match the codes in your software.
5. Open the file and try loading it into your software as a test.
6. Check the appendices: signed sheets, photographs and recommendations are all there.

A hypothetical example: 6,200 items were counted, you recounted 30 at random and found a difference in two. That does not automatically mean poor work. First see whether the two items share a zone and what caused the gap, then check the tolerance agreed beforehand in the contract. If it is one zone, ask the contractor to recount it; if the differences are scattered, widen the sample.

How to record objections

An objection should be in writing, not spoken, and specific: which item or zone, what is wrong, and what supports it (a recount result, a photo). A general remark such as "I did not like the report" helps neither the contractor nor you. A sample: "Zone C, 12 items: the report shows 40 pieces, the recount gave 46; sheet and photo attached." Such a note shows the contractor at once what to check. If the contract sets a time limit for objections, send them within it. Ask the contractor for a written reply and a date for the correction. When the corrected report arrives, you repeat the checks not from the start but only for the parts that changed.

If the disputed part is small, the work can be accepted in part: you accept the undisputed part, record the disputed one separately, and a final certificate is drawn up after correction. The effect on payment terms depends on the contract, so go over that with a lawyer too.

Conclusion

The certificate is not a formality after the work is over but the result of a check at its last stage. A day or two spent on acceptance costs far less than a dispute in the months that follow. With Inventory, the price, timeline and confidentiality terms are set out in the contract and the final report comes with an analysis of differences and recommendations; the acceptance procedure can also be agreed at the contract stage.