Facilitating the finance process for a developer

Prendos was engaged to provide an initial bank finance report and subsequent drawdown reports for a new subdivision development of five two-storey residential units in Henderson, West Auckland. The developer – like many new entry developers – was unfamiliar with the process required by the bank to approve and release funds throughout the build. They also had a limited understanding of construction contracts.

Our quantity surveyors were able to step in and immediately help the developer to understand the process and bank requirements better. While engaged by our client, our quantity surveyors provide unbiased advice, as the reports we provide to the bank are intended to enable them to assess and reduce risk associated with lending.

As part of the initial bank finance report, our chartered quantity surveyors reviewed the developer’s budget, programme, designs and consent documentation. We also thoroughly reviewed the construction contract to assess whether the contract being used by the parties was acceptable and in compliance with the Construction Contracts Act, with contractual risk being shared appropriately, and no onerous clauses that would affect the development.

We were able to make clear and well-reasoned recommendations to ensure all due diligence was carried out appropriately, and assisted in resolving contract issues when required.

Following the approval of finance, we remained engaged by the developer to provide drawdown reports for their bank. Regular site visits were carried out to confirm the value of work carried out, as well as expected cost and time to complete. This ensured the project remained within the budget and schedule, and was completed to both the bank and the developer’s satisfaction.

The developer appreciated our support through the development process, protecting them for possible development risks. Our team built a strong relationship with the developer, communicated on time and provided professional services that ultimately helped achieve the project goals.

“We were very pleased with what was achieved. The Prendos QS team has been excellent, and we have developed a good relationship, which we will now evolve and continue to help us with future development projects.”
– May Chang, Developer, MZA Family Trust