Financier and developers, will often shop around to get the cheapest quote in an effort to shave a few hundred dollars off the cost of their reports. The question that remains is: Should they prioritise financial savings, or a quality level of reporting?

Developers often see financiers reports (risk assessments during the construction period of a development) as a necessary evil to get their hands on the financiers cash, so the cheaper the better. However where the drive is towards controlling of costs to maximise return, the saving in a financiers report could leave them exposed to the risk of far greater costs during the life of the project.

Paul Cosker, Manager, Quantity Surveying at Napier and Blakeley says that a well thought-out financier report will provide commentary on the project. However, in order to achieve that, the developer should sometimes be prepared to pay a little extra for a thorough review at the outset.

“We typically would examine contract documentation, licensing and regulatory issues, project consultants and insurances amongst others. These key issues identify items that have huge potential for causing problems further into the project. This takes both time and expertise from the quantity surveyor.”

A thoroughly considered and well written report has merit as an independent review of the project from the developer’s point of view as well as the financier by providing an unbiased appraisal of the development as a whole.

“The report should fulfil the brief by giving a concise review of the project risks through use of experience and knowledge of the industry. By quantifying and identifying the risks, the report should also provide methods of minimizing and controlling those risks and can offer recommendations on resolution,” says Cosker.

Ultimately, if you want the best protection and advice, you need to be prepared to pay a little more. The reward will be a development that runs smoothly, costs are controlled, risks are contained, and return is maximised.