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In our vast experience in dealing with numerous Australian financier companies, BMT & ASSOC has developed an industry recognised product that makes the finance construction process as easy as possible for financiers, developers and contractors. As this article discusses, BMT & ASSOC can exceed the standard reporting requirements when required in order to allow the financier to become more involved in the project as it develops.
When required, BMT & ASSOC can go beyond the usual scope of works of the standard reporting requirements and provide the financier with more detail, allowing the financier to become more involved in the project from conception to completion. By having access to more detailed information BMT & ASSOC and the financier, are able to keep a closer eye on the project and become aware of potential problems and issues promptly as they arise.
In addition to standard reporting, BMT & ASSOC can:
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Conduct site inspections every two weeks
– this gives the financier a better understanding of the project as it progresses. The financier is able to identify problems in the project much faster than if the progress claims were completed at four or six week intervals. Photographic records every two weeks along with an updated cash flow projection gives a fortnightly picture of the project, clearly showing progress or lack of it.
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Undertake a more detailed understanding of the contractor’s background – BMT & ASSOC can research a contractor’s background more thoroughly, investigating past projects and obtaining details on how the project progressed, whether the project was delivered on time and on budget, and further identifying any problems or issues that arose.
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Attend monthly Project Control Group meetings onsite
– these PCG meetings allow the Quantity Surveyor to raise the question of variations every time the group meets. These will be recorded throughout the meetings, and, as a written record, can be referred to as the project nears completion when often variations from the latter stage of construction can be effectively challenged. Furthermore, BMT & ASSOC can discuss and advise of the progress of trades let and how these prices are progressing in line with original budgets giving the earliest indication of any potential variances. BMT & ASSOC also provide commentary on the meeting, the items discussed and final outcomes following the meeting. Follow up at the next meeting will show how each party has progressed with their responsibilities.
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Investigate, in detail, payment to sub-contractors
– this can be combined with a structured report on a regular basis allowing the financier to bypass the developer and pay the builder directly or, in some circumstances, individual trades direct.
A Worked Example
BMT & ASSOC have recently been involved in a project where the financier required reporting to be above the standard auditing process. As is sometimes the case, the developer of the project had little experience in construction and development. BMT & ASSOC were engaged in an increased capacity by the financier to chair and monitor project control group meetings, inspect the project fortnightly, report on the progress of trades being let, monitor progress of Section 96 applications, and monitor extensions of time. Under this engagement, BMT & ASSOC were able to provide the financier with a more up to date view of the project’s progress in all aspects, providing them with the comfort that was lacking due to the relative inexperience of the client. In this case, the project was successfully delivered on time, on budget, and the financier was at all times aware of all critical aspects.
Please contact Brendan, Brad or Tom at BMT & ASSOC if you require further information on this service.
BASIX Update
The BASIX website has recently reported a number of changes that will be taking place in the near future in relation to energy targets and the application of BASIX to residential alterations and additions.
~ Energy Targets Change
From 1 July 2006, the BASIX Energy target in NSW will vary, according to building type and location throughout the state. These target variations ensure BASIX remains fair and costeffective for consumers and delivers efficient energy and water reductions.
~ Alterations & Additions Scheme
From 1 October 2006, the BASIX for Alterations and Additions scheme will become mandatory. The scheme will be a web-based operation and set specific equirements for building work, based on the type of development. These requirements only apply to the section of the home that is being renovated, ensuring that practical measures are included when renovation work is planned. The aim is to further reduce energy and water consumption levels.
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Recently Completed Projects
Location: Central Coast, NSW
Project type: 7 residential units (high level of finishes)
Approx. Construction Cost Per Square Metre: $2,100/m²
Location: South West Sydney, NSW
Project type: Renovation of Shopping Centre
Approx. Construction Cost Per Square Metre: $800/m²
Location: North West Sydney, NSW
Project type: 5 residential units (medium level of finishes)
Approx. Construction Cost Per Square Metre: $1,300/m²
Location: South West Sydney, NSW
Project type: 7 residential units (medium level of finishes)
Approx. Construction Cost Per Square Metre: $1,000/m²
Location: Far North NSW
Project type: 40 residential units (high level of finishes)
Approx. Construction Cost Per Square Metre: $1,900/m²
Location: Port Stephens, NSW
Project type: 48 residential units, 2 commercial units (medium level of finishes)
Approx. Construction Cost Per Square Metre: $1,350/m²
Location: North Queensland
Project type: 38 residential units, 1 commercial unit (medium level of finishes)
Approx. Construction Cost Per Square Metre: $1,300/m²
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