Why Banks Require Quantity Surveyor Reports

If you’re undertaking a commercial/residential construction project or building a new home, one of the biggest challenges you’re going to face is securing finance.  Before a bank will lend you money, they will need a clear understanding of

  • the construction costs and risks involved
  • the financial viability of your project and
  • if it’s likely to be completed on time and on budget. 

An independent quantity surveyor report gives the financial institution the information they need to assess your application, but it has the added benefit of helping to keep your construction project on track.

When is a quantity surveyor report needed for construction projects?

Generally, your bank will require the quantity surveyor report as part of their initial assessment.  Once the loan is approved, the financial institution will release the construction funds at certain stages of the construction (known as ‘drawdowns’).  At each drawdown stage you will likely be asked to provide updated quantity surveyor reports as evidence that the project is on-track. 

The number of drawdown reports and extent of information needed can vary depending on the complexity of the project and the lender you’re using.

Why does the bank report need to be prepared by a quantity surveyor?

Those assessing your loan application aren’t building and construction experts, and need to rely on an independent professional for thorough and accurate information upon which they can base their assessment.  Naturally, the better the quality of the report prepared by a quantity surveyor, the faster the bank can assess your application.

What are banks looking for in a quantity surveyor report?

For the initial assessment, banks are looking for a number of key pieces of information, including:

  • A clear and accurate assessment of the costs involved in the construction project, including materials, labour and overheads

  • A detailed analysis of the time required to complete the construction, including any potential delays that may occur

  • An assessment of the financial viability of the construction project, including the return on investment for the development
  • An understanding of the developer’s ability to complete the construction project on time and within budget

  • An assessment of any potential risks involved in the construction project, including environmental and safety risks.

The quantity surveyor may also include reports and information relating to other consultants, such as credentials and insurances held, and building permits and approvals. 

Banks need to know who the main building contractor is and will want documentation that shows they can successfully take the project through to completion, including documents indicating their financial position.

When it comes to drawdown reports, the quantity surveyor will visit the site and be assessing the cost to complete works.  They will also be gathering critical information about the contractor’s progress, including:

  • evidence of paying other parties, such as sub-contractors, and meeting their payment obligations
  • details about any approved changes to the project and program
  • reports from consultants to show works to date are compliant, and
  • an invoice from the contractor that reflects an agreed value of works with the quantity surveyor.

Does the quantity surveyor you choose matter?

When looking for a quantity surveyor, make sure they have a strong track record for preparing quality reports for financial institutions to ensure your application can be assessed with confidence.  A poorly prepared quantity surveyor report not only will slow down processing, it may set off alarm bells for the application assessors.

Here at Newton Fisher, for instance, we have helped countless developers and home builders with professionally prepared quantity surveyor reports throughout the construction process.  We are also on the Quantity Surveying panels of all the major banks in Australia, and provide project audit services and risk management advice to financial institutions on multi-million-dollar projects so there’s no project too big or too small for us to handle.

Most importantly, our senior personnel oversee each report to ensure you’re getting great advice and a top notch report EVERY time.  We can also look for ways you can save money on your project (and in many cases have helped others avoid potential disaster!).

Although the quantity surveyor report may sound onerous, with the right quantity surveyor on your side it’s so much simpler for you and your chances of project success are improved.  If you are interested in learning more about quantity surveyor reports, contact us for a FREE initial consultation and proposal.


Inner West Business Awards – Winners!

Newton Fisher Group are thrilled to have been nominated and to win the award for the most outstanding business in the Professional Service category at the Inner West Local Business Awards on 8th May. Congratulations to our entire team as this is not possible without all their hard work and dedication every single day. We […]