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.