Financiers Preliminary Pre-commencement Construction Budget Report

Through our network association, our company is preferred and regularly engaged by some of Australia’s major lenders to assess and monitor project risk on their behalf.

The financier initial pre-commencement construction budget report performed at the initial stage of funding provides security on the knowledge of whether or not a construction budget or contract value should be adequate to complete a project. It also provides a checking mechanism for broad analysis of contract conditions, documentation, approvals, licensing, insurances, cashflow etc. including bringing any obvious matters to the attention of the financier. We report on the value of works under construction, the assessment of progress claims, recommendation of agreed payments and calculation of the cost to complete and final account.

Regular progress reports show our consideration of retention, deductions for owner’s equity or previous payments, as well as licensing and insurance checks, statutory declarations of payment by builders, and cashflow comparison where required by the financier.

Quantum QS Monitoring Role for Financiers and Finance Consortium's

Project monitoring can be described as the evaluation and identification of the risks associated with the proposed project usually. This can be seen as the risks to a lender of finance that is to be used for development or investment.

Project monitoring requires the skills set of a professional endorsed quantity surveyor with hands on practical construction experience and the ability to benchmark and review the following:

  • real live current market construction costs and data
  • development of cash flow and similar programmes
  • adequacy and the level of professional fees set aside for the subject proposed development
  • detail to determine adequacy of drawings and specifications, to ensure that the project can be delivered
  • ensure that statutory consents are met
  • planning development approvals and conditions are met
  • health and safety plans have been issued and notices served
  • land surveys and validation in accordance to approved plans have been undertaken
  • project insurance levels are correct for the type of project and are valid and adequate
  • the chosen contract document or procurement method is the most appropriate for the proposed development

In summary the project monitoring process is to ensure that all aspects of cost, time and quality are delivered in accordance with the development approval and documentation.

Quantum QS possess all the required skill set of an endorsed quantity surveyor with hands on approach to construction to be able to provide the services of Project Monitoring. Whilst the scope of the service and procedures are generally common to most forms of project monitoring, we are able to tailor our service to suit any particular forms of reporting or scope that Financiers may require with a commercial approach.