.png){kind=logo}
(02) 9629 3495
Has your lender requested an initial QS report?
If your lender has requested an Initial Quantity Surveyor Report, CPP Quantity Surveyors can help. Our reports provide an independent assessment of construction costs and project funding requirements to support residential home finance applications.
What is a QS Report for Bank Finance?
A QS Report for Bank Finance, also known as an Initial QS Report, Construction Finance Report or Lender's Quantity Surveyor Report, is an independent assessment prepared for banks and other lenders to support a construction finance application. For single dwelling residential properties, the report reviews the proposed project and construction costs to help the lender or valuer determine whether the project can be completed within the approved budget.
Lenders use these reports to assess project risk and confirm that sufficient funds are available to complete the development.
Many banks and non-bank lenders require an independent Quantity Surveyor Report before construction funding is approved once project values exceed a certain value. The specific requirements can vary between lenders and funding institutions.
What Types of Projects Do You Accept for Initial QS Reports?
Our Initial QS Report services are primarily offered for residential projects where a builder has provided a lump sum building contract and construction payment stages have been clearly identified within the contract documentation. These projects are generally more straightforward to assess, allowing us to review the construction budget, contract value, payment schedule and available funding in accordance with typical lender requirements.
Lump sum contracts provide a defined scope of works and agreed contract price, making it easier for both the lender and Quantity Surveyor to assess project costs and funding adequacy before construction commences. As a result, this contract type is commonly preferred by banks and other lending institutions when providing construction finance.
Projects operating under alternative contract arrangements such as cost-plus contracts, hybrid contracts, construction management agreements or percentage-complete payment structures can present additional complexities and risks from a lender's perspective. These arrangements may require a different level of assessment and are not always suitable for our standard Initial QS Report service.
We may consider these projects on a case-by-case basis depending on the lender's requirements, project complexity and available documentation.
If your project does not operate under a traditional lump sum contract, please contact us before requesting a quote so we can discuss the most appropriate solution.
Do You Provide Progress Claim Assessments for Construction Finance?
Some lenders require an independent Progress Claim Assessment or Progress Payment Report to be submitted with each funding drawdown during construction.
CPP Quantity Surveyors provides this service on a case-by-case basis depending on our availability, project location and lender requirements. As these assessments typically require site inspections throughout the construction process, service availability may be limited in some locations.
If your lender has requested progress claim assessments, please contact us to discuss your project and determine whether it is suitable for our service offering.
What Does an Initial QS Report Include?
An Initial QS Report includes an independent review of the proposed construction project, building contract and project budget. As part of this assessment, CPP Quantity Surveyors reviews the builder's quotation and provides an opinion as to whether the submitted construction costs are fair and reasonable and generally consistent with prevailing market rates for similar projects.
Where required, we can provide commentary regarding the builder's licence status and whether the contractor appears appropriately licensed for the proposed works.
The specific content and format of the report may vary depending on the requirements of the lender, funding institution or broker.
FAQ
1 / Is a Quantity Surveyor required to prepare an Initial Quantity Surveyor Report?
Yes. An Initial Quantity Surveyor Report is typically prepared by a suitably qualified and experienced Quantity Surveyor. The purpose of the report is to provide lenders with an independent assessment of the proposed construction costs, building contract, project budget and funding position before construction finance is approved.
Many banks, non-bank lenders and finance providers specifically require the report to be prepared by an independent Quantity Surveyor due to their specialist expertise in construction costs and project risk assessment. For larger developments, lenders may also require the report to be prepared by a Quantity Surveyor who is a member of the lender's approved Panel QS network.
If your lender has requested an Initial QS Report, it is important to confirm any specific qualification or panel requirements before engaging a consultant.
2 / How long does it take to prepare an initial QS Report?
Generally, for simple projects can generally be prepared within a few weeks, depending on the quality of information provided and current workload. Larger houses or more complicated projects with multiple elements may require additional time. We will confirm an indicative turnaround period as part of our fixed-fee quotation.
3 / I need an Initial QS Report urgently. Can you help?
Absolutely! If you require a report urgently, please contact us on (02) 9629 3495 or contact@cppqs.com.au. We do offer expedited services for many project types.
4/ How much does an Initial QS Report cost?
Our fee varies depending on the project type, size, site conditions, quality and overall scope of works. We provide fixed-fee, no obligation quotes, often within hours of receiving the request. Simply use the enquiry button at the top of this page.
5 / What information do you require to prepare an initial QS report estimate?
Generally, we require the architectural floor plans, elevations, sections and any other documentation used by the builder to prepare their lump sum contract price. Depending on the project, this may also include engineering drawings, specifications, finishes schedules and other consultant documentation.
In addition, we require a copy of the builder's itemised quotation and a copy of the signed building contract. The contract should clearly identify the builder's licence details, contract value and staged payment schedule, as many lenders require the Quantity Surveyor to review and provide comment on the proposed construction payment breakdown as part of the assessment.