The rise of working from home and hybrid office flexibility has contributed to less people travelling to CBDs for work. This has contributed to a growing re-imagination of city design and structure, accelerating the urban design theories of walkable neighbourhoods, and decentralised city design. Decentralised cities are complex due to the rapid development and increasing density of targeted suburbs and regions, and there are a lot of cost requirements. Therefore, it is important for parties involved across both the public and private sectors to receive quantity surveyor reports and accurate cost estimating services to ensure development is appropriate and sustainable.


What does decentralising a city mean?

Simply put, decentralising a city involves creating new “satellite hubs” and destinations for work and higher density living, rather than simply the CBD and immediate inner-city surrounding suburbs. This helps reduce pressure on CBD infrastructures, such as roads and transport, during peak times, and spreads people out across suburbs.


Why are cities focusing on decentralised city design?

In theory, these ideas have some benefits for all parties. The government has an increased tax base within the hub suburb, allowing it to invest in better infrastructure, including in lower-density suburbs. By creating new work destinations and reducing the distance people need to travel for work, traffic is reduced in the CBD region. Having work close-by, or from home, means reduced commute times, which leads to increased happiness and health. People within the neighbourhood have more public facilities and private businesses in their area, greatly increasing land values. Land values can be further improved by having retail, hospitality, and work easily accessible within walking distance. Local businesses and shop owners get increased customers and foot traffic from people spending more time in their local neighbourhood rather than in the CBD. Private developers can profit from building new housing and infrastructure. However, during the stages of rapid increasing development, disruptions to transport and increases in traffic can occur – especially before infrastructure is upgraded.


Increasing density

Density refers to the number of people living within a specific space. Low-density suburbs may have single-family detached houses on most/ all blocks. Mixed and mid-density suburbs may have a combination of detached houses with townhouses, apartments/ units that reach up to 3 or 4 stories, as well as more mixed-use streets that combine commercial and residential buildings. Meanwhile, high-density suburbs such as CBDs are predominantly made up of tall apartment buildings and mixed-use developments. Increasing the density of development via a subdivision is profitable for developers as they can sell multiple properties whilst only purchasing one area of land.

However, the introduction of more people to an area may put pressure on public and council facilities. Large developments require quantity surveyor reports and Section 94 contributions to address the cost of the project for private developers and council facilities. 


Examples of decentralisation in Australia

Decentralisation of cities has received support in some regions across political party divides in Victoria and NSW. Sydney aims to become ‘a metropolis of three cities,’ with a plan to balance infrastructure across three key areas, the eastern city (current CBD), central city (Parramatta), and western city (Bradfield). In Melbourne, many suburbs are being targeted for transformation into hubs, largely along key transport infrastructures such as existing train lines and the proposed suburban rail loop. Some examples are Box Hill, Clayton, Glen Waverley, and Sunshine.

Many public sector jobs have been transferred to regional hubs in Victoria, such as Geelong, Bendigo, and Ballarat to increase job stability in those areas. This in turn aims to help stimulate private investment, followed by more public infrastructure. Many people migrated from cities to regional areas and hubs over the course of the covid-19 pandemic for a change of scenery and to get the benefits of a regional lifestyle whilst working from home.


Section 94 Contributions – Quantity surveyor reports

Increasing the density of a block of land will have consequences, both good and bad, for the neighbourhood. Some of the immediate impacts will include additional pressure on public systems such as roads, schools, water, and power systems, as well as reducing the publicly available green space. This is where a Section 94 quantity surveyor report comes in. Any development where construction exceeds $500,000 must have a Section 94 contributions report undertaken by a quantity surveyor. This report details the costs of the construction project and will allow the council to request funds if the surrounding infrastructure needs improvement due to the project or development existing. 


Do you need accurate quantity surveyor reports?

If you are looking for quantity surveyor reports for your development, get in contact with our experienced team. At Section 94, we will ensure your development progresses smoothly, without inaccurate and excessive budget hurdles. There’s no point in paying excess costs and fees unnecessarily.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.

As expert building quantity surveyors, we recognise that the construction industry has always valued remaining at the forefront of technology. Could blockchain be the next step in streamlined construction? We’ve outlined three ways cryptocurrency and blockchain could benefit your next build, and why this digital transaction tool may begin to be integrated into the construction industry.


What is blockchain and how does it work?

To understand blockchain you need to have a basic knowledge of cryptocurrency. Cryptocurrency is a digital or virtual currency that uses encryption to securely verify transactions. Crypto does not rely on banks to process transactions but is secure and impossible to forfeit. Blockchain technology is a new tool for recording and processing transactions made in cryptocurrency and other values like the service or product. Blockchain securely creates a clear, linear record of cryptocurrency transaction history by forming a “chain”. This can automate contractual processes by creating a clear ledger of services provided and tracking all the multiple transactions involved in one project. This efficient and transparent form of payment processing and recording streamlines project management, which could have many benefits for the construction industry. 

1.     Fast payment processing

Using blockchain and cryptocurrency could result in payments being processed faster for contractors. Blockchain does not require payments to be processed and verified by banks, incurring fewer process payment fees and time delays across banks.

The instant processing of blockchain and cryptocurrency would allow faster material purchases and work turnaround, plus it would be appreciated by construction workers and contractors. If combined with smart contracts, this instant payment system could be automated to occur as each stage of construction is achieved. 

2.     Record keeping for future maintenance needs

While blockchain has many benefits as a payment processing system, this tool could also function as secure information management with no limit to scalability. The encryption stores data in a code that is verified by all the prior transactions, so no aspect can be changed without being noticed in the digital ledger. This information also isn’t limited to a central server, which allows blockchain to scale as needed for small to very large construction projects and for the information to be readily available by any party 24/7.

As the records of the blockchain are unchangeable, using blockchain could also function as storage of all warranties, certifications and material information for every aspect of the project. This virtual storage would be of great benefit to the building owner if any asset of the building needs to be replaced or repaired over the years. This data is not only stored but also verified by the blockchain and the tool’s transaction history records, allowing an ongoing ledger of build costs. This system could even encourage further automation to replace or maintain assets routinely using the extensive information stored in the blockchain.

3.     Smart contracts

Smart contracts can also streamline construction processes and payment approvals. Blockchain-enabled smart contracts streamline the supply chain and the management of materials by automatically triggering the next order process or phase. This will reduce the amount of paper, communication, verification and organisation needed to confirm the current works and access documentation about products, pricing and quantities, all while being accessible to every contractor and party involved. Smart contracts allow easy collaboration between contractors while adding a layer of transparency for any scope or schedule modifications.


Need an expert building quantity surveyor?

The integration of blockchain technology with the construction industry will take a while to be widespread, no doubt due to the appreciation of relationships and trusted partnerships between contractors. Blockchain’s automation will also still require professional oversight to ensure every stage of the build meets the standards and project scope. For expert insight into every aspect of the build, the team of building quantity surveyors at Section 94 are here to help!

With a wealth of experience in preparing accurate prefunding reports, construction cost estimates and progress claims, our dedicated team will ensure your residential or commercial build progresses without the hurdles of inaccurate or exceeded budgets. Our estimators will ensure that your construction loan is paid as scheduled with our reliable progress drawdown reports, keeping your project on track and your builders and contractors satisfied.


With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today on 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.  

Progress drawdown reports are an integral part of the staggered release of funding as per a construction loan from a bank. Progress claims and drawdown reports must be submitted to your lender to access funds for materials and labour costs at each construction stage.

Drawdown reports are prepared by expert quantity surveyors to ensure that every aspect of the build’s plans, budget and schedule are prepared accurately and efficiently. By optimising the reports with a qualified quantity surveyor, you can rest assured that your build will be optimised for economic efficiency and your funds will be released from your construction lender as scheduled.


The different stages for a progress drawdown report

Drawdown reports provide evidence to the bank that the build is on schedule and better track your expenses across the construction project. It allows little margin for error as all invoices and receipts must be included within each report to be processed.

An important part of the construction process is a progress drawdown report that is made after each stage of the build. This confirms the quality completion of the current works by a licensed and trusted third party like Section 94 to the owner and lender, allowing the lender to release the funding for the next stage of the build. The stages of progress payments can vary depending on your construction loan or builders, but typically there are five different stages of progress payments.

  1. Slabs poured

The first progress payment will typically cover the costs of building the foundations of your new construction project. Depending on your contract, this stage could include levelling the ground, installing plumbing and waterproofing the foundation before pouring the slab and creating the base of your home.  This stage can take several weeks.

  • The frame of your home
    The next stage to be completed is constructing the frame of the build. Whether your project is constructed of timber or steel, this stage involves the builders creating the frame, roof and windows of the home.
  • Lock-up
    At this point, the external build is taking form! This includes the construction of external walls and doors including the installation of insulation within the home. At this stage, the build can be physically locked, and the lender may ask for a valuation visit to confirm the construction project’s status and quality.
  • Fit-out and internals
    While the lock-up phase ensures the exterior of the build has been completed, this stage involves constructing the internal cladding, fixtures, and fittings. Kitchen and bathroom cabinetry will be installed at this stage and the plumbing and electrical systems will be installed.
  • Completion
    The final stage of the build typically includes the finishing touches like painting, fencing, and cleaning the site. This stage also includes inspections of the completed project and ensuring the build has been completed to a high standard.

The Section 94 process

At Section 94, we know that clients and construction companies want peace of mind surrounding the construction loan instalments and payment schedule, which is why our quantity surveyors have a dedicated approach to progress claims. Our team of experts are knowledgeable in all stages of the build process, which allows our licensed professionals to check the quality of every aspect of the build and ensured it is all reported accurately to the financier.

Our team are guaranteed to only take a maximum of 1 week to assess a progress claim, preventing any disruption to the build’s progress. For a realistic construction project cost with accurate progress drawdown reports that avoid the risk of cost overruns, choose trusted estimators like the talented team at Section 94.


Need professionals to prepare progress drawdown reports?

With a wealth of experience in preparing accurate prefunding reports, construction cost estimates and progress claims, our dedicated team at Section 94 will ensure your residential or commercial build progresses without the hurdles of inaccurate or exceeded budgets. Our estimators will ensure that your construction loan is paid as scheduled with our reliable progress drawdown reports, keeping your project on track and your builders and contractors satisfied.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today on 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.  

When building a new home or development, it is integral to submit an accurate and timely council cost report. This important step is often required by local councils as part of the development application for a new construction project. This report must take place during the early planning stages of the build, to ensure that all the businesses involved including architects, contractors and builders have a clear understanding of the unique requirements of the local council.


What is a council cost report?

For construction to commence, construction companies are required to submit a development application or construction certificate to gain any permit approvals or council permissions. Often if the project is estimated to be over $500,000, this documentation may also require a completed council cost report to be approved by the local council. This document details the estimated cost of construction determined during the planning stages of a construction project and can require further details or levies if the budget exceeds a set council limit.


What are section 94 contributions?

A Quantity Surveyor’s Council Cost Report confirms that the estimates have been inspected by a registered quantity surveyor which allows the council to determine the fees to be charged to the developers. These fees will vary from council to council and are known as a Section 94 contribution as part of the Environmental Planning and Assessment Act 1979. This contribution is used for the local infrastructure and future council planning, including local costs like road upgrades, gardening of public spaces and electrical wire maintenance. This levy caters for all developments in the surrounding areas and ensures that local councils have the funds needed to cater for a growing community.


How is the document prepared and what is included?

If the expected costs of the project are equal to or exceed $500,000, then it is crucial that this document is prepared by a registered quantity surveyor. It is then submitted online alongside the Development Application which details all new construction projects and architectural designs to the council.

This process involves a quantity surveyor first examining all the development plans, itemising equipment, materials, and labour costs expected for the planned works. This requires the quantity surveyor to prepare a cost estimate as per the Australian Cost Management Manuals of the Australian Institute of Quantity Surveyors (AIQS), and calculate an accurate measurement of the total construction area. The council cost report requires the highest level of attention to detail, as it outlines the total cost and cost per square metre for all areas of work including:

  • Any necessary demolition or site preparation
  • Excavation needs
  • Construction costs (for residential or commercial properties)
  • Fit-out costs
  • Carpark costs

To ensure accuracy, this document must be completed by a registered (and preferably an experienced) quantity surveyor. This will ensure the project is estimated efficiently and the cost per square metre is accurately calculated.

This cost can make a big difference in the resulting council charges, so it is important for independent quantity surveyors to prepare thorough documentation to avoid undervaluing the project or incurring an unnecessarily high section 94 contribution.


The Section 94 process

At Section 94, we know that clients and construction companies are eager to get started on their development and want a stress-free and seamless development application experience. Thankfully, our licensed quantity surveyors offer a fast turnaround of just 3-5 days for total peace of mind and quick council approval.

For a realistic construction project cost and accurate council cost report, to ensure you’re paying the correct section 94 contribution and avoid budget blowouts, choose the trusted team at Section 94.


Preparing your development application and need a council cost report?

The experienced team of building quantity surveyors at Section 94 are here to help! With a wealth of experience in preparing accurate council cost reports, construction cost estimates and progress claims, our dedicated team will ensure your residential or commercial build progresses without the hurdles of inaccurate or exceeded budgets.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Section 94 is available across Sydney and Melbourne, with a comprehensive knowledge of the unique council requirements for both major cities.

Give us a call today on 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.  

If not accounted for in the bank prefunding report, the existing conditions of the site can have a dramatic impact on the projected build costs. As expert quantity surveyors, our team know that accuracy is integral to ensuring a project is on time and within budget. Starting a construction project with a swift and comprehensive bank prefunding report minimises the risks to the homeowner and the bank.

However, it is important to be aware of the factors that can make a site more challenging and more expensive. These issues will need to have a plan to be resolved in the bank prefunding report for the best chance of finance approval to then commence your residential build. While the bank prefunding report also covers the builders, materials and permits needed, here are four ways that the site’s conditions can impact the estimated construction costs of a residential build.


1.     The quality of soil

Before the building can commence, the soil will be tested for quality and type. The soil type will determine the level of ground movement and the level of engineering required on the slab for the home. If the soil type is found to have high or extreme ground movement due to moisture changes, such as clay which is a very undesirable site foundation, it will require additional time and funding to resolve.


2.     Site preparation and excavation

There are also costs to be considered concerning the site preparation and any excavation needs. An example might be the need to remove trees and vegetation or move rocks on the site, which will of course incur more costs than a clean block. Other site preparation costs include the need for safety fencing, facilities for tradespeople, and signage for WorkSafe compliance.

Excavation or site cut costs of the site can also increase if there are any assets under the ground or near the build area. It is important to investigate if there are any easements or gas mains that could be an inconvenience to the excavation project. These site costs must be outlined in the builder’s tender, construction budget and bank prefunding report.


3.     Slope of site

If the land is sloped or the terrain is uneven, there will also be costs and measures outlined in the bank prefunding report. This involves a surveyor determining the exact slope of the land and the work needed to level the slope or uneven terrain to ensure the land is stable enough for the framework. Otherwise, the structure may need to be constructed with more steel for a hardier frame than timber or with a specialist, custom builder who has the capabilities to build on sloping sites.


4.     Site location and size of build

Often unconsidered, if your site is located in a more rural area there can be higher costs related to setting up the utilities. This is due to the additional costs of drilling or connecting amenities that previously did not extend to the site and will be a notable factor in the bank prefunding report. The site location can also include additional upgrades to meet minimum requirements for bushfires and it will also impact the costs of transporting the materials to the construction site. These unique location issues will increase the projected build costs.

The size of your residential home’s design can also impact the site’s preparation needs. A house with multiple storeys often requires deeper excavation to ensure stability. The build’s size and site conditions may also require different slab construction, yet another way that the site can impact the construction costs outlined in the bank prefunding report.


Why it pays to get a bank prefunding report from a trusted quantity surveyor

To receive lending, it is important to meet the bank’s criteria. A comprehensive bank prefunding report outlines the value of the construction work and the ability to meet the design criteria, giving you the best possible chance of receiving financial approval and starting your residential build.

By outlining all aspects of the construction project at the very beginning, you can avoid provisional sums, expensive variations and surprise additional costs during the build process. An accurate bank prefunding report ensures there are no doubts about the site preparation requirements, builder’s expertise and projected costs, and can only be achieved with the help of a reputable, registered quantity surveyor.


Interested in quick bank prefunding reports?

The experienced team of building quantity surveyors at Section 94 are available to help with bank prefunding reports and progress claims/drawdown reports to help your project progress smoothly without the risk of inaccurate or exceeded budgets.

With over a decade of industry experience, our qualified building quantity surveyors will assist you with all your construction budget and management services such as providing contractor tender analysis and construction cost reports.

Give us a call today on 0413 953 869 or email us at info@section94.com.au to learn more about our premium budget services for commercial builds.  

Quantity surveyors are integral to accurately calculate the construction costs surrounding commercial and residential builds in the initial cost report. As leading building quantity surveyors, the team at Section 94 knows that the process of creating an initial cost report and acquiring bank prefunding differs greatly between residential and commercial builds.

While precise considerations are important for developing an accurate estimate of construction costs from the very beginning of the build, the difference in scale between residential properties and larger commercial builds requires a change in approach.


The differences in team structure

As valuation experts, recognising the difference in the structure of the construction team is an integral aspect of the initial cost report and the process of creating an accurate pricing estimate. It’s also an important part of determining the project’s feasibility. While residential builds often follow similar construction methods with limited design variations, for unique commercial builds it’s important to consider if the design is achievable within the budget and timeframe.

With the difference in scope and speciality, the construction team of a residential build and a commercial build are assembled to meet different needs. The builders for smaller or custom residential builds often come from a trade background while the builders for commercial properties are from larger companies that are privately owned or publicly listed. This means that for a residential build, there can be a lot of scope cross between team members with site managers and project managers also on the tools, while for largescale commercial builds there are more defined roles.

This difference in team structure also impacts the progress reports verified by the building quantity surveyors in Sydney. As the construction team of a commercial building is more extensive than a smaller residential property, this often involves more construction progress claims for the release of funds following detailed progress drawdown reports as established by an expert quantity surveyor.


The difference in design, equipment and materials

As residential properties, particularly inner-city homes, are often limited to maximising the space available, there is a dramatic difference between residential designs and the extensive designs of commercial buildings. This difference in material costs becomes apparent in the early phases of the initial cost report when you consider features more typical to commercial builds like elevators and fire escapes.

Due to the budget constraints and scale of the projects, there is a difference in the materials used and equipment needed between a residential and commercial build. For instance, while labour in residential projects is often manual, larger construction builds require cranes and more complex equipment. This difference is often showcased in the construction cost, with commercial buildings requiring a much larger amount of more resilient materials. One example of this key material difference is in the build’s frame.

Often due to the small size and limited budget, residential construction projects use a wood frame. Most residential homes are small enough to be supported by timber, which is cheaper than a steel frame. Commercial builds use steel frames as they are stronger and better suited for multi-storey builds. Steel frames are also more flexible than timber, which could snap under the pressure of wind in higher storeys. This is just one example of a material difference that not only affects the construction costs of the project and the equipment required but could also impact the timeline due to the transport of different materials and the hire of specialist labour and equipment. Similarly, homes might be interested in a few automation and integrations for a modern, smart home while commercial buildings will often implement innovative features on a much larger scale with security features and automated cooling spanning multiple storeys.


The difference in building codes, permits and licenses

The building codes for residential and commercial projects will also have different needs with different requirements for council approvals. These requirements will be outlined in the council cost report for the development application. This allows the local council to provide new services and public amenities to the site and ensures that the proposed build is within council standards. For larger commercial builds, the detailed council cost report may take a longer turnaround time than a proposed residential development.

There are also different permits and licenses required for each project. Commercial developers often need more permits and licenses for larger projects, with trade licenses for all contractors on site. Comparatively, residential contractors who perform general tasks may not need additional permits like the plumbing and electrical contractors. As permits and council requirements vary between councils and projects, it is important to find experienced building quantity surveyors in Sydney for clear construction project costs and an accurate cost summary report.


Need a residential or commercial quantity surveyor?

The team at Section 94  are experienced building quantity surveyors to help you create an accurate initial cost report for a smooth bank prefunding experience, without the risk of inaccurate or exceeded budgets.

With over a decade of industry experience, our qualified building quantity surveyors will assist you with all your construction budget and management services such as providing contractor tender analysis and construction cost reports.

Give us a call today on 0413 953 869 or email us at info@section94.com.au to learn more about our premium budget services for commercial builds.  

With ever-evolving building technology, automating aspects of the home for comfort or visual allure plays an integral role in modern commercial builds. As expert building quantity surveyors, the team at Section 94 consider all the detailed inclusions of new construction to accurately estimate the costs and budget considerations. This increasingly includes the installation of extensive, commercial lighting systems and automation for a seamless appearance.

Whether it’s to add artistic flair or to showcase elements of the build’s exterior, beautiful lighting systems provide a focal point to capture interest when the building is at its least visible. If you’re considering adding custom exterior illumination on your next commercial project, our team have outlined the benefits and considerations of automated lighting designs for an accurate construction budget.


The benefits of architectural illumination

Modern outdoor lighting goes beyond simple recessed pendants or path lights as beautifully designed lighting accentuates and directs attention to chosen aspects of the build. From projected light shows that move gracefully across exteriors, creative wall washing to interactive light installations that inspire people to physically touch the facade, commercial lighting systems are a modern method of making a build memorable.

Automated lighting displays also provides the opportunity for the structure to visually adapt to the seasons. By shifting from regularly illuminating the build with coloured accent lighting to changing the lighting body colour to a green and red scheme for the Christmas season, your lighting design can shift for added interest. And, of course, exterior lighting installation is not only an opportunity to elevate your commercial design, but it also increases accessibility and security during the night hours.



Different architectural lighting option

Lighting displays are no longer limited to just one colour, with many LED options having the technology for individually addressable LEDs that allow different colour designs to be put in place at any time. Automation and integrations are important to modern builds as new technology creates more options for adding excitement to public spaces with the ability to seamlessly control it all from your smartphone. A few lighting options for commercial installations include:

  • Exterior LED Lighting:  No longer limited to simple floodlights or wall mounts in different shades of white, exterior LED lighting is durable lighting that illuminates the perimeter or surface of the building in different colours, brightness, beam directions and durations all easily controlled through automation and tools.
  • Individually addressable RGB strips: This causes each bulb to act as a pixel in a larger display. This lighting option requires an expert programmer to design the lighting layout before installation and program each bulb to the exact lumen and colour desired for the overall vision.
  • Sensors and timers: Energy-efficient, dusk-to-dawn sensors optimise lighting to automatically turn on or off in response to sunrise or sunset.
  • DALI programming: DALI can be used by any programmer to create addressable lighting designs for colour changing, scene-setting and dimming in response to set timers or sensors. It involves the application controller receiving messages from sensors and relaying designs to the LED lights. These lighting control components can also be changed in response to any layout or timing changes.
  • C-BUS Automation: This automation system allows lighting to be turned on or off, dimmed or change colour without flicking switches. C-BUS systems serve as a communication device between the programming, sensors and lighting.

Additional costs of hiring lighting programmers and designers

For elaborate lighting displays across the large spaces of tall buildings, the build team will need to include the expertise of lighting solution professionals. This ensures that the diffusion and colour of the complex lighting display are designed to suit your unique build and your vision.

Each architectural project will include its own complications and difficulties. Perhaps the space is very well illuminated, and the light display is lacklustre due to direct sunlight during the day or the wall-flooding design has not accounted for the uneven texture of the cladding. These quirks can only be resolved with lighting programmers and designers and a firm grasp of the scope and vision of the project. Thankfully, the expert team at Section 94 can assess construction tenders to ensure you have the lighting team best suited for your architectural vision.  

Architectural lighting is designed to entertain and add artistic value to the structure and can go further than simply highlighting entry and exit points. If you’re considering adding an exterior lighting display in your next project, complete with sensors and timers, be sure to address the desired effect and budget with your building quantity surveyors and professional lighting team.


Need help estimating your commercial build’s lighting?

Section 94 is comprised of Australia’s premium and experienced building quantity surveyors to help your project progress smoothly without the risk of inaccurate or exceeded budgets.

With over a decade of industry experience, our qualified building quantity surveyors will assist you with all your construction budget and management services such as providing contractor tender analysis and construction cost reports.

Give us a call today on 0413 953 869 or email us at info@section94.com.au to learn more about our premium budget services for commercial builds.  

For builders and contractors to receive regular, ongoing payments throughout the build process, they must enter the process of making progress claims of their construction project. This payment claim itemises the completed work, goods or services provided to the client or loan supplier, allowing builders to continue working on the project.

Progress claims are a part of the Building and Construction Industry Security of Payment Act 2002, otherwise known as the SOP Act, which ensures that those carrying out residential and non-residential building receive progress payments for work or supplies as determined by the construction contract. Thankfully, this process doesn’t have to be daunting, with the help of the expert team at Section 94.


When to make a claim

This straightforward payment scheme provides a quick and easy process to recover payment increments from the client or directly with the bank providing the loan without stressful disputes or the need for lawyers. Progress claims apply to all kinds of construction work including residential, civil engineering, electrical, landscaping, maintenance, architecture, surveying, plumbing and supply of materials.

If not contractually specified, the date to provide a claim, called the reference date, can vary. Typically progress claims fall in line with each stage of construction in a progress claim schedule (usually 5 stages), typically forecasted at the finance stage (bank prefunding) to give the lender an idea on cash flow. If you’re after a single payment, the reference date is the day after you finish working or supplying the goods or services. The reference date for final payments is the day after the end of any period under the contract for rectifying defects or omissions, or the day after the final certificate is issued.


The process of making a claim

The first step for contractors or builders to be paid for goods, services or work performed is to make a payment claim. To make a claim, it’s important to have all documents in order and include these three important details.

  • The specified work, goods or services
  • The amount claimed
  • The Security of Payment Statement

This involves first identifying the completed construction work or goods provided during the indicated period and itemising them in the payment claim to determine the amount of money that is due. The payment claim should take into account the estimated price outlined in the construction contract, which is one of the many reasons it’s important to have a clear construction budget from the very beginning of the build. Any variations to the construction contract can also be claimed if there has been a change in the scope of work under the contract. However, these variations can be disputed by the recipient.

By providing all the above information, a payment claim looks and acts similarly to an invoice, but a payment claim will also include the Security of Payment Statement so that the recipient knows that the SOP Act applies. For a payment claim to proceed, it is integral to include the phrase, “This is a payment claim under the Building and Construction Industry Security of Payment Act 2002.”

Once the client has received a payment claim from the contractor or builder, they must pay the full amount by the due date or respond within ten days of receiving the claim with a payment schedule. Their response must confirm how much they intend to pay and include any reasons for variation from the proposed amount in the claim.


Three reasons for adjudication in Victoria

Although detailed progress reports and payment claims help lessen disputes and deter lack of payment, issues can still occur. A claimant can take action or enter adjudication if the payment schedule outlines that the respondent intends to pay less than what the builder has claimed, the respondent does not follow the payment schedule they provided or if the respondent fails to provide a payment schedule or pay the claimed amount. The Victorian Builders Association can assist by getting the builder in touch with an Authorised Nominating Authority (ANA) to help with the adjudication process.

To reduce the likelihood of costly disputes over progress claims, registered quantity surveyors like the expert team at Section 94 confirm all the details of the progress claim to avoid incomplete work or mismanaged funds. Our talented quantity surveyors audit the work completed and validate the claimed progress against the invoice and contract schedule, before providing photographic evidence of the work completed to create an accurate report for the builder, client, and bank’s records.


Need help with a construction progress claim?

Section 94 is comprised of Australia’s premium and experienced building quantity surveyors and experts in preparing progress claims for the construction industry. This expertise helps builders, suppliers and contractors to attain regular payments through detailed inspections of the construction site and thorough documentation.

With over a decade of industry experience, our qualified building quantity surveyors will assist you with all your construction budget and management services such as providing bank prefunding reports, construction budgets and section 94 reports.


Give us a call today on 0413 953 869 or email us at info@section94.com.au to learn more about our premium surveying services.