Construction Bank Finance Reports and Why You Need a Quantity Surveyor
Understanding Construction Bank Finance Reports and the Quantity Surveying process
There comes a time when developers or owner-builders will need to borrow money from a bank to finance a project. Banks have strict lending criteria to ensure they minimise risk and remain profitable, which is why they require a mandatory report referred to as a construction bank finance report.
Developers will need to lodge this report with a bank before it will approve finance for development. Here’s what you need to know about how to prepare this critical document.
What does a construction bank finance report do?
The role of the construction bank finance report is to assess the financial history of the loan recipient and ensure the bank is not entering into a risky proposition. Banks require extensive proof that they will profit from a transaction and that the recipient will pay the loan back.
Quantity surveyors perform background checks as part of the document preparation, which helps ensure the bank’s approval. Part of the background check will include confirming the builder’s insurance is current and that the involved parties have the required building licences.
Several documents make up a construction bank finance report. A quantity surveyor is required to review building plans, insurance documents, and contracts. Other documents they will include in the report include:
- Project cost breakups
- Architectural plans
- Land surveys
- Authority approval
- Building contracts.
They will ensure the report exceeds the banks’ standards and that it includes as many details as possible to ensure the success of the loan application.
When is a Construction Bank Finance Report required?
The construction project cannot start until the bank report is submitted and the loan is approved. Other times, a report may be necessary partway through or towards the end of the project when developers, homeowners, or builders may face a financial shortfall.
Why do you need a quantity surveyor?
Once the loan is approved and construction is underway, regular site visits by the quantity surveyor will be necessary to monitor progress, including assessing the value of the work completed so far, and a review of the builder’s entitled payments. These payments ensure that the builders, developers, and financiers can preserve their cash flow so the project can continue.
How a quantity surveying service provider can help you?
Experienced quantity surveyors like Newin Building Estimating Services offer extensive expertise and guidance to home builders and developers in the Bank Finance Report requirements as we work with a number of leading banks. Find out more about our Quantity Surveying Services across Sydney and Melbourne right here.
Other useful links:
- Building Estimates for Architects and Interior Designers
- Building Estimates for Builders
- Building Estimates for Developers
- Building Estimates for Home Owners
- Construction Estimator Sydney
- Quantity Surveyor Sydney
- Quantity Surveyors Parramatta
- Quantity Surveyors Central Coast
- Quantity Surveyors Northern Beaches
- Quantity Surveyors Western Sydney