Banks and other lenders require information to ensure that the lending corresponds to the value of the project at each stage.
Failing to satisfy lending requirements can bring your project to a grinding halt, therefore bank drawdowns are essential to help ensure financial continuity.
CM carries out the following steps to help ensure that necessary lending requirements can be undertaken:
- Review contract documents, drawings, specifications and prepare a basic report with any recommendations.
- Provide confirmation to the bank once recommendations have been actioned. CM bases the report in accordance with the NZIQS Construction Financing Reports guidance document. (New Zealand Institute of Quantity Surveyors, V2 October 2019) Monthly progress payments drawdown certificates, includes site visit, progress report and certification of the claim.
CM is currently working with:
- Bank lending conditions
- Detailed Plans and consents
- Your total budget including all consultant fees and construction costs
- Any quotes obtained
- Any funds you are putting into the project over and above the lending if not fully borrowed
- Details of the Builder and LBP number if known
- Construction programme if you have one
The information will be reviewed and collated into a simple easy to read report providing confirmation to your lender once we are satisfied that you meet the conditions requested in your loan documents.
Simple project with lending up to $500K typically the cost of a basic report costs around $900 – $1,200 + GST.
Architectural housing, design and build and Multi units with lending up to $2 million typically the cost of a basic report costs around $1,600 – $2,400 + GST.
Commercial projects with lending up to $5 million typically the cost of a report costs around $2,800 – $5,000 + GST.
We can assist at contract stage to determine the cashflow forecast and drawdowns be it monthly drawdowns or staged payments.
Typically, the following services are undertaken for each bank or finance company drawdown:
- Site visit and produce a photo report with comments
- Process the main contractor’s monthly payment claims and issue payment schedules accordingly in accordance with the Construction Contracts Act. (CCA) This also included an allowance for off-site material inspections as well as calculation of any retentions
- Receive the contractors tax invoice and then issue a Payment certificate to the lender
Indicative costs per drawdown:
- Simple project with lending up to $500K each drawdown costs $850 – $960 + GST
- Architectural housing, design and build and Multi units with lending up to $2 million each drawdown costs $1,080 – $1,800 + GST
- Commercial projects with lending up to $5 million each drawdown costs $1,200 – $2,500 + GST
We can cover any part of New Zealand, travel and disbursements are generally included in the above rates but will depend on the location and access.
Get in touch with us and we can give you a personalised fee proposal.