When applying for construction finance, banks often require clear, independent reporting before releasing funds. At Elemental QS, we specialise in providing accurate, timely, and reliable reporting tailored to lender requirements. As trusted Quantity Surveyors, our team ensures that both banks and clients have the clarity needed to move projects forward with confidence.
Banks need assurance that a project is financially viable and that lending risk is minimised. This is where an Initial QS Report comes in. Sometimes called a Bank QS Report, this document provides a clear assessment of costs, timelines, and risks. It allows lenders to confirm that funding is being allocated appropriately, while giving developers the peace of mind that their project is financially supported from the start.
The initial report is a document required for the bank to approve finance for a construction project. We undertake a cost verification estimate for every project to confirm its feasibility and advise the financier of the associated risk and cost to complete. Our QS reports ensures the required documents and consents are completed and approved prior to funding. Each report is tailored to align with the financier's brief and informs the bank of any risks associated with a project.
Progress reporting is carried out each month throughout the duration of the project. This report informs the bank of the progress of works on-site, any risks, and confirms the cost to complete. In order to complete a progress report, we undertake a site inspection, review the contractor's progress claim, assess the programme in relation to works completed on-site, and ensure all relevant documentation is in order.
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The Initial QS Report is typically the first requirement from a financier. It sets the foundation for lending approval, outlining construction costs, timelines, and cashflow requirements. At Elemental QS, we prepare QS reports that meet all major bank requirements, ensuring your project can progress without delay.
Throughout the build, banks require ongoing QS Reports to track financial progress. These reports include cost-to-complete assessments, drawdown certifications, and variation reviews. By monitoring expenditure against budget, we help ensure both lenders and borrowers remain aligned during every stage of construction.
Banks need assurance that a project is financially viable and that lending risk is minimised. This is where an Initial QS Report comes in. Sometimes called a Bank QS Report, this document provides a clear assessment of costs, timelines, and risks. It allows lenders to confirm that funding is being allocated appropriately, while giving developers the peace of mind that their project is financially supported from the start.
Our QS team provides regular site inspections and cost-to-complete updates, certifying that funds are only released in line with actual progress. This protects the bank’s position while also keeping the developer’s cashflow predictable and transparent.
23-29 Albert Street, Auckland 1010
19 Sheffield Crescent, Burnside, Christchurch 8053
Phone : +64 20-493-6595
info@elementalqs.co.nz
Whether you are applying for initial finance or seeking progress drawdowns, Elemental QS is here to make the process seamless. Our QS team works directly with developers, banks, and financiers to ensure every report is clear, accurate, and compliant with lender expectations.
A financier may instruct a Quantity Surveyor to prepare an Initial QS Report prior to funding. Elemental Quantity Surveyors follow the financier’s brief. They certify the cost to complete and comment on project risks. The Quantity Surveyor may request documentation to complete the report. This helps provide the bank a better understanding of the project and its risks.
The financier’s QS brief requires the QS to prepare a detailed construction cost estimate for the proposed development to ensure the Contract Sum is sufficient to complete the works. We also ensure the documentation is sufficient to allow the contractor to submit an accurate price.
We confirm if construction materials in the contract match the allowances in the builder’s tender submission.
One of the most important documents is the construction contract. We review the executed construction contract and comment on the suitability of the agreement. We provide feedback on specific clauses in the contract, including the contract sum, programme, deposits, security (bonds or cash retention), early completion bonuses, delay damages, liquidated damages, cost fluctuations, and more. You must execute this contract before the first progress drawdown report. We recommend completing a Tripartite Agreement to give the financier step-in rights to the contract if the developer cannot complete the project.
Depending on the contract sum and project type, we may request a copy of the most recent construction program.
The program must show clear commencement and practical completion dates. This helps us monitor progress on site monthly and update the financier in future reports. Typically, we allow a one-month contingency in the program to account for unforeseen delays.
At Elemental Quantity Surveyors, we compare our construction cost estimate with the builder’s trade summary. This cost comparison allows us to identify and inquire about trades that may differ significantly from our estimate. In our experience, some builders are aware that the terms of the contract do not allow for deposits or offsite materials. In the past, we have seen builders inflate their earthworks and substructure packages in order to ease their cash flow and cover deposit payments to their subcontractors/suppliers. While we understand that subcontractors may request deposits, we do not recommend paying for offsite materials, as this represents prepayment for work not yet completed and exposes the financier to additional risk should the builder be unable to finish the project.
If the developer is also the builder, we will review a trade lettings schedule to confirm that the percentage of trades let is reasonable, depending on the stage of the project (e.g., before site commencement, we would expect to see earthworks, slabs, services, windows, and carpentry trades let). This varies from project to project. We understand that in the current market, some subcontractors may not submit a fixed-price quote for works that may not commence for six months, and our commentary may reflect this.
Our QS report comments on the resource consent and building consent. We must confirm that the council has issued consents for construction and review all mandatory inspection stages from the council and your consulting engineers. A QS monitors inspection reports throughout the project and ensures that we append the required documentation to our reports. Quantity Surveyors do not recommend payment for restricted building work if the council has not consented to it.
We confirm that all relevant consultants (architect, structural engineer, civil engineer, services engineer, geotechnical engineer, building surveyor, engineer to the contract) hold current professional indemnity insurance policies with adequate coverage. The construction contract may specify the required insurance limits for these consultants. We monitor insurance policies throughout the duration of the project and provide updates in future progress reports
This includes contract works insurance, public liability, motor vehicle insurance, plant and equipment insurance, etc. The Quantity Surveyor is required to confirm that the builder’s insurance policies are current before the first drawdown. We recommend that the contract works policy be site-specific, name the financier as an interested party, and cover the full contract sum. We also monitor the insurance policies throughout the duration of the project and provide updates in future progress drawdown reports.
The geotechnical report is an important document for a Quantity Surveyor. We carefully review the geotechnical engineer’s report to identify any rock, soil contamination, or groundwater issues on site. For example, if we encounter rock, we confirm what allowances the builder has included for breaking up, excavating, and removing it. If the builder has made no allowances, we will ask for a schedule of rates for any variations related to latent conditions, which we will use if such variations arise.
We will ask the land surveyor to provide a survey and/or statement confirming that the proposed building has been designed within the title boundary and does not encroach on neighboring properties.
Development costs play a crucial role in determining the total cost to complete. Depending on the financier’s requirements, we may require a breakdown of any costs outside the building contract, including acquisition costs, professional fees, statutory fees, authority fees, legal fees, holding costs, marketing and sales commissions, and any works outside the contract sum (e.g., landscaping, swimming pool, client-supplied items).
If the bank requires a valuation report, we will review it and compare it with the information we have received. We will confirm whether the valuation report aligns with the design documentation used to prepare our report.
If finance is contingent upon pre-sales or lease agreements, we will review the agreement—similar to the valuation report—and comment on sunset clauses, specifications, and other information to ensure they align with the builder’s scope of works.
Bank QS Reports are independent assessments prepared for your lender. These specialised reports, include Initial and Drawdown Reports, which verify project feasibility, validate costs, and monitor construction progress. They provide the crucial financial assurance your bank requires to secure and manage your construction loan, protecting their investment and keeping your project funded.
The cost varies depending on the size and scope of your project. However, to give you a general idea, the average cost of an Initial QS Report prepared by Elemental Quantity Surveyors in Christchurch is $3,900 (excl. GST).
Our target lead time for an Initial QS Report is 5 working days, ensuring you get the cost clarity you need without delay.
The average cost for a Bank Drawdown Report is $900 (excl. GST) per report. Our Drawdown Reports provide provides certainty for your project's budget and ensures your bank receives the professional documentation they require to release your funds.
An Initial QS Report is a pre-construction risk assessment for your Christchurch bank. We analyse all plans and contracts against their brief to validate the budget and feasibility, securing your loan approval.
A Bank Drawdown Report occurs during construction. We inspect site progress to verify completed work, authorizing your bank to release the next stage payment.
