A progress claim assessment is not simply a percentage-complete check. For a lender, the assessment also needs to show whether the claimed value is supportable and whether sufficient funding appears to remain to complete the project, subject to the agreed reporting scope.
At a glance
- Observed progress is reconciled to the claim by trade or work section.
- Approved, claimed and unresolved variations should not be treated as the same thing.
- The remaining cost and available funding position matter as much as the current drawdown.
Start with the contract and prior position
A QS typically reconciles the original contract sum, approved variations, previous assessments, amounts paid or drawn, retention or security treatment and the current builder claim. This creates a controlled opening position before the site assessment is considered.
Provisional sums, prime cost items, client-direct works and consultant costs may also need separate treatment depending on the financier’s reporting requirements.
Assess physical progress
The site inspection is used to assess visible work completed at the inspection date. Progress is normally considered by trade or work section rather than accepting the builder’s overall percentage without testing it.
Concealed work, off-site materials and specialist items may require additional evidence because they cannot be verified by a normal visual inspection alone. A QS inspection is also not a substitute for building certification, engineering inspection or quality assurance by the relevant consultants.
Check supporting information
Depending on the appointment, the review may include the builder’s claim breakdown, variation approvals, invoices or purchase evidence, programme information, statutory declarations, insurances, permits, inspection certificates and consultant or superintendent certifications.
Where evidence is missing, the report should state the limitation clearly. Unsupported value should not become “verified” simply because it appears in a claim.
Separate variations by status
Approved variations, variations submitted but not approved, potential changes and disputed amounts create different levels of cost certainty. A useful assessment keeps those categories distinct and explains which amounts are included in the adjusted contract value or cost-to-complete forecast.
The same discipline should be applied to provisional-sum adjustments and delay or loss-and-expense claims.
Test the cost to complete and funding
The lender’s risk is forward-looking. The QS considers the remaining contract work together with known project costs, outstanding variations, contingencies and other commitments against the undrawn facility and any remaining borrower equity.
The report should make the current payment recommendation, funding position, unresolved items and next required evidence easy to find.