Pre Construction Cost Audit Reports
Financiers can rely on Property & Building Assessments to deliver comprehensive pre-construction reports to include:
- Review of proposed construction contract, special conditions and proposed security
- Comment on the level of documentation provided and whether satisfactory to deliver the project
- Comment on the capability of the Builder and Project Consultants to fulfill the construction contract
- Comment on the suitability of the construction contract to deliver the project satisfactorily for pre-sale and/or pre-leasing contracts
- Review of the development program and confirmation the program is achievable
- Review of the development cashflow forecasts
- Preparation of independent estimate of construction costs separately measured, to verify the adequacy of the total project budget
- Review of allowances for other costs such as land acquisition, headworks, fees and charges, professional fees, finance costs and interest charges and contingency allowances
- Comment upon any specific site conditions which might impact upon project costs
- Summary of status of authority approvals including development consent, planning approval and building licence and review of conditions attached to approvals
- Comment on degree of completion of design documentation
- Prepare a schedule of Project Consultants engaged and provide copies of professional indemnity insurance
- Review of project insurances
- Highlight any specific project risk!
Progress Claim Assessments
Progress Claim Reports are generally prepared addressing the following:
- Assessment of the progress claim submitted by the Contractor
- Certification of the value of work complete including fixed materials on-site
- Review and update the forecast development and construction costs
- Certification of the cost to complete
- Comparison between actual expenditure to date and anticipated cashflow
- Comment upon the progress of the works and provide an independent assessment of the likely project completion date
- Summary of status of variations and claims
- Verify that claims from Sub-Contractors and Suppliers have been paid in accordance with their contracts
- Advise on the ongoing status of approvals and permits
- Obtain certification from Design Consultants that the works are proceeding in accordance with the relevant documentation and approvals
- Confirm status of project insurances.
- Advise on issues of risk
- Attend additional meetings and site inspections as necessary for the above.
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Australian Institute of Quantity Surveyors
