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.
- 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.