Bank reports prepared by Quantity Surveyors are a regular condition imposed by banks and other financial institutions when approving funding for property development.
Wilde and Woollard have prepared bank reports for a wide range of major Australian banks and other financial institutions in compliance with the individual requirements of the respective lender.
Bank reports are primarily concerned with:
- Construction costs – Independent verification that the estimated or tendered construction cost is correct and that all relevant works are included.
- Design drawings and documentation – Confirmation that the design drawings and documentation clearly define the relevant scope of works to be constructed.
- Conditions of contract – Checking to ensure that important conditions of contract are properly addressed and that the conditions do not include any unacceptable risks to either party, which have not been specifically negotiated.
During construction it is also common for lenders to require:
- Monthly progress inspections – Independent valuation of contractor’s monthly progress claim, to ensure that the correct amount is authorised for payment. (in particular to guard against the risk of overpayment)
- Cost to complete – Independent assessment of the cost to complete the construction works, based on the outstanding value of original contract works, plus the cost of current and forecast variations, claims, extension of time costs, etc
Wilde and Woollard can ensure that all aspects of a project are reviewed and audited at regular intervals to ensure compliance with the contract and the lenders financial arrangements.