Cost to Complete and the QS Report: How Lenders Release Build Funds
Construction Finance
Construction and development finance
A lender's QS report follows a construction facility from the first cost check to the final drawdown. This guide explains which report the lender may be asking for, what documents to send, how cost to complete keeps the facility in balance, why a QS can certify less than the builder claims, what happens when a drawdown is held, and how the numbers reset if the project changes builder or lender.
Quick Answer
A lender's QS report is the cost check a quantity surveyor makes before approval and before each drawdown. It tests the budget, certifies the work done and the cost to complete, what finishing will still cost. A QS certificate supports a release; the lender still decides what it pays.
Also called: bank QS report, lender's QS report, construction finance report, initial financier report, QS progress report, cost-to-complete report
Does your lender need a quantity surveyor report, or just a valuer?
Most standard home builds are checked through the lender's valuation and progress-inspection process, while commercial builds, developments, specialist projects and complicated mid-build files are more likely to require a lender-approved quantity surveyor. The lender decides which professional it will rely on.
A valuer and a quantity surveyor answer different questions. A valuer focuses on the property as security and what it is worth. A quantity surveyor focuses on construction cost: whether the budget is realistic, what has been built, what remains to be spent and whether the project can still be completed with the money available.
One major bank's residential construction guide says its valuer inspects completed stages and may require a quantity surveyor report where the valuer considers one necessary. The Australian Property Institute's mortgage valuation guidance likewise says a valuer should recommend a suitably qualified person where construction-cost expertise is needed. That does not create one rule for every lender. It shows why a simple home build can run through a valuer while a development lender may insist on a QS from the beginning.
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| Project | Common lender approach | When a QS becomes more likely |
|---|---|---|
| Standard home build with licensed builder | Valuation plus progress inspections | Larger, unusual or higher-risk build, or where the valuer or lender requests cost expertise |
| Owner-builder or non-standard contract | Requirements vary materially by lender | Where the lender needs an independent cost plan, cost-to-complete check or tighter progress monitoring |
| Business premises or commercial build | Often a lender-approved QS or construction-cost consultant | Commonly from the initial finance assessment |
| Townhouse, unit or property development | QS reporting is common through approval and drawdowns | From the initial construction-finance report onward |
| Partly completed or stalled project | Fresh site and cost review | Where an incoming lender needs a current cost to complete before refinancing or restarting funding |
If your lender has just said "we need a QS report"
- Do not order a generic report yet. Ask for the exact report type, scope and lender template, plus any panel, qualification or professional-indemnity requirement.
- Ask who appoints the QS and who the report is addressed to. A good report from a firm the lender will not rely on, or addressed to the wrong party, can still need to be redone or reissued.
- Send the lender's wording to the QS. "QS report" can mean different things at approval, drawdown, mid-build refinance and final completion, and an early cost plan is not automatically a substitute for any of them.
- Make sure the QS sees the same project the lender approved. The contract, drawings, variations, budget and funding table should reconcile, or the report starts another round of questions.
- Confirm the document list and expected report date. Missing plans, approvals, budgets or site access are common reasons the clock does not really start.
- Work backwards from the builder's payment date. The QS report is only one step; the lender still has to review and release the drawdown.
If you are self-employed and the QS request is only one condition in a broader construction application, our guide to construction loans for the self-employed covers the income evidence and approval sequence around the build itself.
Which QS report does the lender actually need?
The right report depends on where the project is in the finance cycle. Before approval, the lender needs a forward-looking cost and funding check. During construction, it needs evidence of work completed and an updated cost to complete. A stalled or refinanced project may need a fresh standalone cost-to-complete assessment.
On a business premises or development build, the approval steps around the initial report are set out in our guide to how commercial construction loans work.
The terminology is not perfectly standard. Lenders and QS firms use labels such as initial report, bank QS report, construction finance report, initial financier's report, progress report and drawdown report. The safe approach is to match the report to the lender's written instruction, not to the label alone.
Scroll the table sideways to see every column.
| Report or request | When it is used | What it needs to answer |
|---|---|---|
| Feasibility estimate or cost plan | Before finance or before a builder contract is final | What the proposed project is likely to cost. Useful input, but not automatically a lender-reliance report. |
| Initial construction-finance or financier report | Before formal construction funding is approved or drawn | Whether the contract, total budget, contingency, program and funding position are credible enough to start. |
| Progress or drawdown report | Before each construction release where the lender requires QS monitoring | What work is in place, what claim is supportable, what has changed and what it should still cost to finish. |
| Cost-to-complete report | Mid-build, especially after a cost overrun, builder change, stalled project or refinance | What remains to be done and the current amount required to reach completion from today's site condition. |
| Final or practical-completion report | At the end of the build | Whether the funded works are complete, what remains outstanding and whether any amount should still be retained. |
What documents does the QS need, and how long can the report take?
A QS can only report cleanly on the project it can see on paper and, where required, on site. The fastest files usually start with the lender's exact instructions plus a complete contract, plans, approvals, budget and builder information.
There is no single Australian turnaround time for a lender QS report. Timing depends on the report scope, project size, how complete the documents are, whether a site inspection is required and the appointed firm's workload. A quoted QS turnaround is also not the same as the time until money lands, because the lender reviews the report after it is delivered.
Common initial QS document pack
- Building contract and payment schedule. Include the signed contract or the final draft the lender is reviewing.
- Plans, specifications and approvals. Use the same drawings and scope the builder priced.
- Builder details. Licence, insurances and any builder information requested by the lender or QS.
- Full project budget. Include costs outside the builder's contract, not just the contract sum.
- Construction program. Show the expected build stages and completion date.
- Variations and provisional items. Include anything already changed, not yet finalised or excluded from the fixed price.
- Mid-build evidence where relevant. Prior QS reports, the history of staged drawdowns, paid invoices, the current progress claim, photos and the latest site status.
This is a general lender-QS pack, not a universal checklist. The lender's instruction and the appointed QS firm's scope control the actual list.
Two major banks publish their residential timelines, which give a sense of where the days go once the QS or valuer has done its part. One says a required inspection can add four to five business days before a progress payment is made. The other says a payment typically takes five business days from receipt of complete documents, that inspection reports are usually required on the first and final payments and can stretch payment to ten business days, that a report takes three to five business days to come back once booked, and that it inspects every stage where the fixed-price contract is above $600,000. Those are two banks' published residential processes, not a QS or industry-wide turnaround.
Published bank timelines around a progress payment
- 4 to 5 business days. What one major bank says a required inspection can add before a progress payment is made. Source: Westpac, Construction loan, westpac.com.au, read 24 September 2026. One bank's residential process; other lenders differ.
- 5 business days, up to 10 with an inspection report. What a second bank says a progress payment typically takes from complete documents, and how far the first and final payments can stretch when inspection reports are required. Source: Macquarie, Submitting progress payments for construction loans, macquarie.com.au, read 24 September 2026. One bank's residential process; other lenders differ.
- 3 to 5 business days, every stage above $600,000. The same bank's turnaround for a booked progress inspection report, and the contract size above which it inspects every stage rather than only the first and last. Source: Macquarie, Understanding construction home loans, macquarie.com.au, read 24 September 2026. Residential construction loans; commercial and development facilities differ.
Residential examples read at source on the date shown. Commercial and development facilities, and non-bank lenders, set their own timelines.
What does the QS report check before approval and at each drawdown?
The initial report sets the construction cost base; each progress report tests what has changed against that base. The QS is not only checking the builder's invoice. It is looking at completed work, variations, remaining risk and whether the project can still reach completion with the funds available.
A progress report to a financier commonly covers the builder's progress claim, the amount the QS certifies, construction status, new risks, the cost to complete and the QS's view on timing. That is why a progress report can identify a funding issue even when the site looks busy and the builder is still working. On a development, the two lines that most often decide how a lender reads the report are the contingency still held and any provisional sums not yet priced; our note on how a development lender reads your QS report goes through both.
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| Stage | What is checked | What can move the numbers | What the lender uses it for |
|---|---|---|---|
| Initial report | Contract, budget, scope, exclusions, contingency, program and funding position | Missing costs, provisional sums, unrealistic contingency, non-standard payment stages | Set the approved cost base and construction conditions |
| Progress report | Work in place, current claim, variations, remaining work, cost to complete and program | Claim ahead of work, unapproved variation, delay, defect, unfixed materials, new cost | Decide what amount can be recognised for the draw |
| Mid-build reset | Current site condition and a fresh completion budget | Replacement builder, rectification, remobilisation, extension costs, revised scope | Assess a shortfall, top-up, restructure or new lender |
| Final report | Practical completion, outstanding items and any retention | Defects, incomplete items, missing completion documents | Support the final release and transition out of construction funding |
A fixed-price building contract and the lender's total project cost are not always the same number. Lenders treat development cost broadly: the construction works plus the other costs needed to reach completion. Which items apply depends on the project, contract and facility; our guide to what counts as a development cost goes into the cost base itself.
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| Cost area | Why the QS or lender still checks it |
|---|---|
| Provisional sums and prime cost allowances | They are allowances rather than final actual costs, so selections or completed work can move above or below the contract allowance. |
| Variations | Changes alter the approved scope and funding position. An agreed builder variation does not automatically mean the lender has funded it. |
| Consultants, authority charges and service connections | Some necessary project costs can sit outside the builder's price while still being required to reach completion. |
| Driveways, landscaping, retaining and other external works | These items may be excluded, provisional or owner-managed even though they can still affect completion, valuation or the lender's approved budget. |
| Owner-supplied items and separate trade packages | They may not appear in the head contract, but the lender still needs to know how they are paid for and whether they are required to finish the project. |
| Contingency, rectification and remaining risk | Contingency can be consumed during the build, while defects, delay or a builder change can add new completion costs that were not in the original contract balance. |
How does cost to complete decide whether the loan is in balance?
Cost to complete is the forward-looking number: what the QS says it should still cost to finish the project from its current state. The lender compares that figure with the construction funds still available and any remaining borrower contribution.
The original contract sum is not enough once the build has moved on. Variations, unspent contingency, provisional sums, delays, rectification and costs outside the building contract can all change what remains to be funded. That is why the cost-to-complete number is re-tested through the build rather than fixed on day one.
Illustrative only: a $2,000,000 facility with $1,300,000 already drawn has $700,000 undrawn. If the accepted cost to complete is $760,000 and there is no further committed equity, the project is $60,000 out of balance.
This is closely related to loan to cost, but it is not the same calculation. Loan to cost compares debt with a cost base. Cost to complete asks a more immediate drawdown question: is there enough money left to finish from here? Where interest is capitalised, the capitalised interest to completion has to fit inside the facility too.
Two lenders can read the same report and reach different numbers, because each counts the development costs its own policy includes. APRA's guidance to banks says good practice is for a bank's policy to identify which development costs it considers, for example hard costs, soft costs or total costs. That is guidance to banks, and non-bank lenders sit outside it. Banks also have a capital reason to watch the ratio of debt to cost. Under APRA's capital standard, a bank's residential development loan carries a 150 per cent risk weight unless conditions are met, including total debt below 75 per cent of qualifying development costs and, above $5 million per development, qualifying pre-sales at least equal to the debt; if they are met, the risk weight is 100 per cent. That is a capital rule for banks, not a borrowing limit, and each bank sets its own policy.
Sources: APRA, APG 112 Capital Adequacy: Standardised Approach to Credit Risk, apra.gov.au, effective 30 September 2024, read 23 September 2026 (guidance to banks; non-bank lenders sit outside it). APRA, APS 112, Attachment A paragraphs 29 and 30, apra.gov.au, effective 1 July 2025, read 23 September 2026 (a capital rule for banks on residential development exposures, not a borrowing limit; each bank sets its own policy).What happens if cost to complete is higher than the money left?
If the accepted cost to complete is higher than the undrawn facility plus any remaining committed contribution, the construction loan is out of balance. A lender may pause or limit further releases until it can see a credible way to close the gap and still finish the project.
The fix depends on why the gap exists. A genuine overrun may need more borrower equity, an approved facility increase or other capital. An incorrect or duplicated cost may be solved by reconciling the QS report to the contract and budget. A scope change may require a revised contract or a decision to remove or defer works. If the project value has also fallen or the exit no longer works, adding more debt can make the position worse rather than solve it.
When the QS says the project is out of balance
- Get the exact shortfall figure and calculation date. Do not work from "the bank needs more money".
- Separate measurement issues from real cost. Reconcile the QS line by line against the budget, contract, variations and amounts already paid.
- Identify the cause. Variation, omitted cost, builder change, delay, rectification, price increase or a budget item counted twice all require different fixes.
- Confirm what the lender will accept as a cure. More equity, facility change, revised scope and third-party funding are not interchangeable from the senior lender's point of view.
- Re-test the exit. Completion still has to make financial sense after the extra cost.
What the lender may want before drawdowns restart
- A current QS position. Usually an updated progress report or cost-to-complete figure showing the revised shortfall and remaining works.
- A reconciled funding table. The lender needs to see the revised budget, undrawn facility, remaining borrower contribution and any new capital in one set of numbers.
- Evidence that the cure actually exists. Depending on the solution, that may be proof of equity injected, an approved facility increase, accepted new capital or evidence that scope and costs have genuinely been reduced.
- Updated contracts, variations and program. If the builder, scope, price or completion date has changed, the lender and QS need the current version rather than the original approval pack.
- Fresh credit or valuation work where the structure changed. A larger facility, extra security or refinance can trigger a new lender decision rather than a simple drawdown repair.
The exact cure and documents are facility-specific. The point is to prove both sides of the equation: what it now costs to finish and where the money to finish it is coming from.
If you are already short of funds, the related questions are broader than the QS report itself. See what to do when a build runs over budget and what happens when the construction facility is close to expiry.
Does QS certification mean the lender must release the drawdown?
No. A QS certificate is evidence for the lender; it is not the lender's final payment authority. The builder's claim, the QS certification and the lender's drawdown decision are different steps controlled by different documents.
This distinction matters when a borrower hears "the QS approved it" but the builder has still not been paid. The lender can accept the construction value and still be waiting for a borrower contribution, insurance, a certificate, an approved variation, an extension of the facility term or another condition in the loan agreement.
Scroll the table sideways to see every column.
| Step | What it answers | What it does not decide |
|---|---|---|
| Builder's progress claim | What the builder says is payable under the building contract | What the lender will recognise or release |
| QS progress certification | What work and cost the QS can support, plus the current cost to complete and risks | Whether every loan condition has been satisfied |
| Lender drawdown approval | What the lender will release under the facility after applying its conditions and available funds | The owner's separate legal response obligations to a formal payment claim |
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| State | Owner building a home to live in | Developer, investor or business owner | Time to serve a payment schedule |
|---|---|---|---|
| New South Wales | Covered for owner occupier contracts entered into from 1 March 2021 | Covered | 10 business days after the claim, or sooner if the contract says so |
| Victoria | Not covered: a domestic building contract with the home owner falls under the Domestic Building Contracts Act instead | Covered for commercial work, and for domestic work where the owner is in the business of building residences | 10 business days after the claim, unless the contract allows less time |
| Queensland | Generally not covered where the owner will live in the home | Covered, including developers, investors, owner-builders, companies and trusts | 15 business days after the claim, or sooner if the contract says so |
| Tasmania | Covered: a home owner who lives or will live there has 20 business days to reply | Covered; an owner builder has 10 business days to reply | 20 business days for a resident home owner, 10 for an owner builder |
Why would a QS report hold up or reduce a drawdown?
A QS can certify less than the builder claimed when the evidence, work in place or remaining budget does not support the full amount. The report is about independently verified construction value and completion risk, not simply whether the builder issued an invoice.
State rules for home building point the same way, which is why a payment schedule that front-loads the price is the most common reason the builder's number and the QS's number part company.
Paid on completed work, as two state regulators put it
- Victoria: deposit of up to 5%, then base 10%, frame 15%, lock-up 35% and fixing 25%, with the balance at completion. Consumer Affairs Victoria says "By law, you pay for completed stages", sets out this usual schedule for a full home build, caps the deposit at 5% on contracts of $20,000 or more, and warns "Don't pay in advance." Source: Consumer Affairs Victoria, Deposits and payments for building work, consumer.vic.gov.au, last updated 30 June 2026, read 23 September 2026. Victorian domestic building contracts only; your contract sets the actual stages; other states differ.
- NSW: payments match the work. The NSW Government says "Progress payments must match the work carried out", and tells owners to check with their lending bank about any special requirements for progress payments. Source: NSW Government, Contracts for residential building work, nsw.gov.au, last updated 29 April 2026, read 23 September 2026. Residential building work in NSW; commercial contracts differ.
Summarised from each regulator on the date shown. General information only, not legal advice.
Unfixed materials are a good example of the second most common gap. Some facilities may recognise certain materials if the contract and lender policy allow it and the required evidence, ownership and control protections are satisfied. Others will only recognise installed work. Treat "materials are on site" as a question for the facility and QS, not as automatic entitlement to a draw. On commercial builds the timing of each report matters as much as the result; a commercial build's drawdown timing shows where the days go.
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| Issue | What the QS or lender sees | Practical next step |
|---|---|---|
| Claim ahead of completed work | The claimed stage or value is not yet physically supported | Finish the stage or reconcile the claim to measured work |
| Front-loaded payment schedule | An early contract stage carries more value than the work physically in place supports | Reconcile the stage schedule to measured progress before the next claim rather than relying on the invoice percentage alone |
| Variation not approved | Cost or scope sits outside the lender's approved budget | Document the variation and obtain the required lender approval before relying on it |
| Provisional or prime cost item not substantiated | The allowance, selection or actual cost has changed but the QS does not yet have the final evidence | Provide the agreed selection, invoice, variation and budget treatment so the item can be reconciled |
| Unfixed or off-site materials | The lender cannot yet treat the items as completed work or does not have the evidence its policy requires | Check the facility rule and provide installation, invoice, ownership or other evidence where allowed |
| Defect or incomplete item | The QS cannot support the full claimed value | Rectify or complete the item, then re-present the evidence |
| Retention or prior-certification mismatch | The current claim does not reconcile to amounts already certified, retained or paid | Reconcile the cumulative claim, prior certificates, retention and amounts actually paid before asking for the new draw |
| Missing documents | Insurance, certification, approval, statutory declaration or other draw condition is incomplete | Supply the missing condition rather than arguing the measured value |
| Cost to complete too high | The money left does not cover the accepted remaining cost | Resolve the out-of-balance position before expecting the draw to proceed |
| Program beyond facility term | The project may not finish before the construction loan expires | Update the program and deal with any extension or refinance early |
If the draw has already been held
- Ask for the certified amount and the exception list. You need the line item, not "QS issue".
- Compare the builder's claim to the QS report. Separate work-value differences from missing lender conditions.
- Send evidence for the exact exception. Photos, invoices, approved variations, inspection certificates and the builder's breakdown are more useful than a general disagreement.
- Check cost to complete separately. A claim can be fully built and still be held if the facility is out of balance.
- Keep the builder-payment issue on its own track. If a formal payment claim has been served, do not let the lender's delay cause you to miss a contractual or statutory response deadline.
For the end-to-end cashflow chain, see how progress claims and construction drawdowns interact.
What happens if the project changes lender, changes builder or stalls?
A mid-build change usually triggers a fresh look at the site and a fresh cost to complete. The incoming lender is financing the project as it exists now, not the project described in the original approval months earlier.
If the builder has changed, the replacement builder's price, rectification work, remobilisation, revised program and additional consultant or holding costs can all alter the completion budget. If the lender changes, do not assume the old QS report can simply be handed across. The incoming lender may require its own appointed QS, a new report, or a re-addressed or reissued report acceptable to both the QS firm and the lender.
The lender's QS acts for the financier, and its progress report comments on construction status, new risks, the cost to complete and timing. Those items become especially important when a project has stopped or the original completion date no longer works.
What an incoming lender normally needs to understand a part-complete build
- Current site and QS position. Latest progress report, current cost to complete, defects or incomplete-work schedule and recent site evidence.
- Money already spent and drawn. Existing facility statements, draw history, borrower contributions, builder payments and any unpaid claims.
- The contract that will actually finish the job. Existing or replacement-builder contract, completion quote, approved variations and responsibility for rectification.
- A revised construction program. The incoming lender needs a credible path to practical completion inside the proposed new facility term.
- Current approvals, insurance and project documents. The new lender must be able to rely on the project as it now stands, not only on the original approval file.
- A credible exit. Sale, term refinance or another takeout still has to work after the revised completion cost and timing are included.
Where this problem usually goes next
- The facility is running out of timeWhat to do when a development facility is close to expiry
- The construction lender has stopped fundingWhat happens when a construction funder withdraws mid-build
- The builder has failedBuilder in administration mid-build: loan, warranty and finance options
- The project needs a new facilityHow a mid-build refinance works
What happens at practical completion and the final drawdown?
The final drawdown is not simply the last builder invoice. The lender usually wants evidence that the funded build has reached the required completion point and that any final facility conditions have been met.
Depending on the lender, property and state or territory, the final pack can include the final progress claim, a satisfactory final inspection or QS report, a practical-completion document, an occupancy certificate or occupancy permit where required, insurance and evidence dealing with any outstanding defects or retention.
For residential construction, published lender guidance shows the same basic pattern. One major bank's construction flyer lists an updated survey report or certificate of occupancy, the owner's building insurance and a full valuation before the final payment. A second bank says inspection reports are typically required on the first and final progress payments. Those are lender examples, not a single national rule.
Sources: Westpac, Construction Flyer, WBC1176 0625, and Macquarie, Submitting progress payments for construction loans, both read 24 September 2026. Two banks' residential processes; other lenders differ.Home build after final draw
- The construction phase ends once the lender is satisfied with completion and makes the final payment.
- Loan repayments and product settings move to the post-construction arrangement in the loan contract.
- Any defects process between owner and builder continues separately.
Development after final draw
- Sale proceeds may repay the construction facility as lots settle.
- A hold-and-rent project may need a separate term refinance rather than an automatic rollover.
- Unsold stock, delayed titles or incomplete leasing can make the exit a new credit decision.
If the build is being held rather than sold, plan the next loan before the construction term runs out. For the broader facility structure, see how commercial construction loans work and development finance options.
Who chooses and pays the QS, and can you use your own?
For lender-reliance work, the lender usually controls who it will accept even where the borrower pays the fee. Do not engage a QS for a bank report until the lender or broker confirms the required firm, panel, qualifications, scope and addressee.
The industry body for quantity surveyors, the AIQS, publishes a guidance note that sets a uniform scope for reports to financiers. Lenders commonly expect the QS to hold a recognised professional designation and professional indemnity cover, and the report is addressed to the lender that appointed the firm. Individual lenders can impose additional panel, professional-indemnity or format requirements.
Source: AIQS, Construction Financing Reports Guidance Notes, aiqs.com.au, read 24 September 2026. Industry guidance; each lender sets its own requirements.Your own quantity surveyor can still be valuable. A developer-side feasibility, cost plan or budget can identify problems before the lender's QS sees them and can make the lender's review easier. It simply does not follow that the lender must rely on your report.
From our construction files, indicative only
The cleanest QS process starts before the builder needs money. The lender's acceptable QS is confirmed first, the QS sees the same contract and budget the lender approved, and variations are dealt with before they appear in a progress claim. The difficult files usually involve a mismatch: the builder is claiming under one set of numbers while the lender and QS are still working from another.
Practitioner observation only, based on construction finance files we have seen as at September 2026. It is not a lender policy, quote or prediction of an outcome.
When you are ready to test a build against a lender's numbers, you can check your eligibility or see all construction finance.
There is no standard Australian QS fee. Ask for the initial report fee, the fee for each progress inspection or report, travel or re-inspection charges and any cost to reissue or re-address a report. The number of planned draws can make a material difference to the total monitoring cost. Our note on what construction drawdowns cost covers the other fees around each release.
The QS report is the lender's construction-cost evidence, not a substitute for the building contract and not the lender's payment approval. The initial report tests whether the project can start with a credible budget. Progress reports test what is built and what it will still cost to finish. Cost to complete tells the lender whether the facility is still in balance. If the project changes builder, lender, budget or program, expect those numbers to be tested again.
Key takeaway: confirm the exact lender report before ordering it, keep the QS working from the same current contract and budget as the lender, and treat any change to scope, cost or timing as a finance issue before it reaches the next drawdown.Frequently asked questions
A QS report for a construction loan is an independent construction-cost report prepared for a lender by a quantity surveyor. Before approval it can test the contract, budget, contingency and funding position. During construction it can certify work completed, variations and the cost to complete. The lender then applies the report to its own drawdown conditions before releasing funds.
Because a fixed-price contract only fixes the builder's agreed contract scope. The lender can still need an independent check of the total project budget, payment schedule, exclusions, provisional sums, contingency and costs outside the head contract, plus confirmation that the funding available is enough to finish the build.
Ask the lender or broker for the exact report name, scope and approved-panel requirement before engaging anyone. Depending on the stage, the lender may want an initial construction-finance report before approval, a progress or drawdown report during the build, a cost-to-complete report on a partly completed project, or a final report at practical completion. A feasibility estimate or cost plan is not automatically a substitute for a lender-reliance report.
Common documents include the building contract and payment schedule, plans and specifications, approvals or permits, the builder's licence and insurance evidence, a detailed project budget including costs outside the building contract, the construction program and any approved variations. A mid-build report also commonly needs prior drawdown history, invoices, progress claims and current site information. The lender and QS can ask for more.
There is no single Australian turnaround time. Timing depends on the report type, project complexity, document completeness, site access and the appointed firm's workload. Ask for the expected report date before paying the quote, and work backwards from the builder's payment date. A lender inspection and the lender's own processing can add time after the QS work is finished.
Sometimes your own QS can provide useful cost information, but do not assume the lender will rely on that report. Construction lenders commonly appoint or approve the quantity surveyor they will rely on, and larger development facilities may have panel, qualification and professional-indemnity requirements. Confirm acceptance before engaging a firm.
No. QS certification supports the drawdown but is not the lender's payment approval. The lender can still be waiting on borrower equity, facility conditions, insurance, certificates, expiry or extension issues, approved variations, account conduct or other documents. The builder's claim, the QS certification and the lender's release are three separate steps.
The construction facility is out of balance if the funds still available under the loan, plus any remaining committed borrower contribution, do not cover the lender's accepted cost to complete. The lender may pause or limit further releases until the gap is resolved, commonly through additional equity, an approved facility change, a revised scope or a reconciled cost position.
The borrower usually bears the cost of a lender-appointed or lender-approved quantity surveyor, but the charging method varies by facility. There is no standard fee: the price depends on project size and complexity, the report scope, travel or inspection requirements and how many progress reports are required. Ask for the initial report fee and the per-progress-report fee before setting the draw schedule.
Tell the lender immediately. Paying the builder first does not automatically make the difference an approved construction draw. Ask whether later completed work can bring the certification back into line, whether a re-inspection is required, and whether you need to carry the difference from your own funds in the meantime.
Do not assume so. An incoming lender may require a fresh report from its own approved quantity surveyor, or it may accept a re-addressed or reissued report if the QS firm and lender agree. The new lender will also want the numbers updated to the site's current condition, especially if the builder, budget, program or cost to complete has changed.
Ask for the certified amount and the exact exception list. Common causes include work not yet complete, a front-loaded stage schedule, unfixed or off-site materials, unapproved variations, provisional items, defects, retention or missing evidence, as our guide to short-paid progress claims explains. Respond to the exact issue with supporting documents and ask whether a desk review is enough or a paid re-inspection is required.
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