When a residential development is funded by a bank or lender, an independent Quantity Surveyor may be appointed to review the construction costs and monitor the progress of the project. The reason is simple: the lender is lending against a building that does not exist yet, and it wants independent assurance that the money will actually finish the job.

What the Bank QS typically reviews

Before construction funding is released, the Bank QS typically reviews key areas such as:

  • Construction budget and fixed-price contract. Is the budget complete, and does the contract price match the work shown on the plans?
  • Costs already incurred and remaining costs to complete. What has been spent, and what is left to spend?
  • Progress of construction against the amount being claimed. Is the work on site worth what the builder is asking for?
  • Approved variations and other project costs. Have changes been properly approved and accounted for?
  • Whether sufficient funding remains to complete the development. Is there enough money left in the facility to finish?

Drawdown reports during construction

During construction, QS drawdown reports provide the lender with an independent assessment of the work completed before further construction funds are released. Each report ties the money paid out to the value of work actually in place.

Why it helps borrowers too

Good cost monitoring throughout the project can help identify potential budget issues early and support smoother progress drawdowns and informed funding decisions. A budget gap found at the start is a conversation. A budget gap found at the final stage is a crisis.

The Bank QS is appointed to protect the lender, but a clear, early report usually protects the borrower from delays as well.

How to make the process smoother

  1. Provide complete plans, specification and contract documents at the start.
  2. Make sure your budget includes every cost, not just the building contract.
  3. Send progress claims promptly so the QS can inspect and certify without delay.
  4. Tell the QS about variations as they arise.

Need a Bank QS report? See our Independent Bank QS Reports or contact us for a fixed-price quote.