Construction Finance Initial Report
The Construction Finance Initial Report is a mandatory prefunding report that a financial institution will request from a developer to be completed by a Quantity Surveyor, which is to be submitted along with the loan application.
The aim of this report is to ensure all risks associated with the project are identified and mitigating strategies are developed and documented. As a Quantity Surveyor, it is our responsibility to assist the lender in performing their due diligence process, as we represent the financiers interests. The report includes a detailed cost break-up of the project, including a comprehensive review of project documentation, such as architectural plans, land survey, any S4.55 applications, authority approvals and permits, the building contract and subsequent clauses, project insurances, ensuring consultants professional indemnity insurances are adequate, vetting the construction programme, cashflow forecast, geotechnical and structural reports, reviewing pre-sales, amongst other things, and make our recommendations where required.
The major banks and other financial institutions have trusted our Construction Finance Initial Reports for over two decades, and rely on our professional judgement as their eyes and ears of every new development. Our reports set an industry benchmark and align with reporting requirements set out by the Australian Institute of Quantity Surveyors (AIQS). See our affiliations here.
Progress Drawdown Reports
Once the developer has obtained the loan facility and has commenced construction, it is a mandatory requirement of the project financier whereby the Quantity Surveyor visits the site, typically on a monthly basis, to monitor the value of works completed to date and assess the payment entitled to the builder. These payments/progress drawdown claims are also a means by which the developer, financier and builder maintain their cash flow. Each progress claim is assessed at a trade level to ensure the value is assessed on a cost to complete basis.
Our team reviews all ongoing documentation throughout the construction lifecycle as each claim is submitted by the builder, such as the builders invoice, contract obligations, extension of time claims, ongoing consultants certificates, boundary check surveys, unfixed plant and material, statutory declarations and the likes. Furthermore, monitoring any project risks and pitfalls to assist in mitigating and avoiding issues that could impede the successful completion of the project within time and budget constraints.
Archi-QS understands that the project cashflow is a critical component of any development project, and provided we have receive the required supporting project documentation, can turn these reports around between one to two days from completing the site inspection.