When a contractor is working on a construction project, it is quite common for the funds to be released periodically to the contractor to help control the funding. Through a project financed by the bank, the only way the funds can be released is through progress claims.
As registered and experienced quantity surveyors, we are required to prepare progress claims that the bank can verify to release the next lot of funding for the project. We take photographs and meticulously inspect the site so we can prepare the report. We also include a cash flow statement which provides the bank with a financial snapshot of all the spending up to date as well as what funds remain.
Typically, contracts stipulate that the project’s funding will be released at intervals. This could be either monthly or when certain stages of the job are complete. In most cases, there are five stages where funding is released on completion of each – slab, frame, lock-up, fixing and practical completion. Depending on the scale of the job, however, there could be more stages at regular intervals. Periodic payments on larger jobs can allow funds to be allocated monthly which reduces financial pressure on the builder by improving cash flow and assisting with ordering materials.
Progress claims exist to verify the contractor’s work against the amount claimed on the invoice in each stage. It is a quantity surveyor’s job to ensure that all the work has been completed and that the amount invoiced reflects the work completed. Once this has been established, then the funding for the next phase can be released by the bank.
Accent Estimating can guarantee a smooth construction process by creating comprehensive progress claims within 3 – 5 days to ensure your project stays on track and does not run into any unnecessary financial hurdles. Contact our team today to find out more about how we can help you.