Property Depreciation and
Construction Cost Consultants


Quantity Surveyors - Cost Planning and Tax Depreciation
BMT & Assoc Provide Depreciation Schedules

Progress Payment Valuations:
The Importance of Supplied Information

Once a Development Check Estimate has been completed for a financier and construction has begun, the parties involved in the project, namely the developer and contractor, will need to arrange for a progress payment valuation to be carried out. Valuation of construction works completed on site at regular intervals controls the cash flow for both the developer and contractor. BMT & ASSOC will provide a progress payment recommendation that will ensure financial drawdowns are accurate for works completed at the date of the site inspection.

A progress payment valuation reports on a number of issues relating to works completed on the development site as at the site inspection date. A thorough and accurate report is completed, covering the following issues:

  1. Financial Progress Claim assessment clearly defining;
    1. Costs to date;
    2. Costs to complete;
    3. Variations experienced and potential variations; and
    4. Expenditure against proposed time frame.
  2. Assessment of progress of the development in relation to the original proposed construction program;
  3. Report on the revised completion date;
  4. Provide details of any variations from the original contract (itemised in detail);
  5. Provide written details of any cost overruns or potential cost overruns;
  6. Provide comment on the amount claimed by the contractor;
  7. Report on whether the Work Cover Authority has inspected the site;
  8. Provide written details of any disputes or possible disputes;
  9. Provide a statutory declaration noting that all sub-contractors, employees and suppliers have been paid in relation to preceding progress claims;
  10. Provide certificates of currency of relevant insurances or note that the previous certificates are still current (contract works, public liability, and workers compensation where applicable);
  11. Verify that all conditions/requirements of the insurances are being adhered to;
  12. Verify that the project is proceeding in accordance with documentation approved by council and the BCA;
  13. Provide written details of any consultant, authority, or Mandatory Critical Stage Inspections (MCSI) conducted and/or certificates issued since the last progress claim;
  14. Provide a break-up of total claim in trade break-up format;
  15. Provide a photographic record of progress; and
  16. Provide comment as to the quality of workmanship.

The first progress payment valuation requires a large amount of data and information from the developer and/or contractor. BMT & ASSOC confirm that a development application has been approved and that a construction certificate has been issued. BMT & ASSOC also ensures that Contract Works Insurance is in place and that the policy accurately covers the value of the construction cost, as stated within the head contract. Often developers try to underinsure the project to save costs by obtaining a policy that does not cover the total contract value of the development.

Recently with the introduction of MCSI’s, the first progress claim requires the Principal Certifying Authority to provide a list of the mandatory inspections required, unless it has previously been provided. These MCSI certificates are required throughout the construction period. Recommendation for payment will not be made unless MCSI certificates, relevant for works completed on site, are provided for review. Finally, if the initial report provided to the financial institution, did not include a building contract, the contract is reviewed and assessed as a component of the first progress payment valuation, which will also include an assessment of the clauses of the contract, proposed construction time program, and construction costs.

As the project progresses, engineer’s certificates of construction works are required to confirm that all works comply with current BCA standards. For example, engineer’s certificates ensure concrete requirements have been carried out with the correct reinforcement used, placement of the reinforcement is correct and the required concrete coverage has been attained. Standard inspections also include frame inspection, water proofing inspections, electrical and hydraulic services inspections.

The provision of a boundary off set survey from a registered surveyor is also required to confirm that the building has been constructed in the correct location on site (in reference to the original peg-out survey) and does not encroach onto neighbouring properties. The building must also be situated on site as indicated on the DA drawings. Failure to locate the building correctly on the site may result in a demolition order being placed on it by the local council. This survey certificate is required by BMT & ASSOC as soon as relevant works have been certified, so that any potential problems can be noted and, if possible, averted.

BMT & ASSOC can generally complete a progress payment valuation five days from when it is requested. Our reports are detailed, accurate, easy to read and provide an independent assessment of works completed on site.

BMT & ASSOC: New Service ~ Finance Submission Report

Developers are required to provide financiers with a significant amount of project information in order to obtain finance. Often developers fail in their bid for finance because the application islacking in project specific information, details on potential return and anticipated milestone/completion dates.

BMT & ASSOC are able to provide developers with a Finance Submission Report. Specifically designed to address financier funding requirements, this report presents the details in a manner that better facilitates the establishment of the loan facility.

This report details the specifics that a financier will require to assess a finance application, namely:

  • An executive summary of the development proposal;
  • Costings and associated expenses to commence work;
  • Applicant details (including company structure where applicable);
  • Précis of the development;
  • Current status of lot/lots;
  • Sales records and data;
  • Assets and liabilities; and
  • A feasibility study: including consolidated profit and loss, finance establishment costs, sales and marketing costs, government and conveyancing fees and construction cost estimates.

This report enables developers to submit all the information required for a finance application in a concise and professional manner. The report also allows financiers the ability to rigorously assess the finance application by providing all required information in an easy to read report.

Please contact Bradley Beer, Tom Plenty or Pedro Cardoso at the office for further information.

Recently Completed Jobs



Location: South Sydney, NSW

Project type: Kindergarten/Child Care Centre
Approx. Construction Cost Per Square Metre: $1,300/m²

Location: North Sydney, NSW

Project type: 9 unit mixed use development
Approx. Construction Cost Per Square Metre: $2,300/m²

Location: Hunter Valley, NSW

Project type: 8 unit residential development
Approx. Construction Cost Per Square Metre: $1,300/m²

Location: Central Coast, NSW

Project type: 2 unit residential development
Approx. Construction Cost Per Square Metre: $2,200/m²

Location: Brisbane, QLD

Project type: 32 unit retail development
Approx. Construction Cost Per Square Metre: $1,500/m²

Quantity Surveying Work

Quantity Surveying Work

Disclaimer: This information should be read subject to the following conditions:

• Information is published as a matter of interest only and is not intended to be relied upon by readers. In any
situations which may be similar to matters herein readers should exercise and rely upon their own judgement.
• Neither BMT & ASSOC Pty Ltd nor any of its officers or employees bear any responsibility for any error in th
material published in this publication or in any previous publication, or for any damage or loss resulting from any reliance on any material published in this publication or in any previous publication.
• This newsletter is issued as a helpful guide and is not intended to, and does not cover all aspects of the topics discussed. Professional advice should be sought before any action upon these topics is undertaken.