Glossary
Quantity surveyor (QS)
Also called: QS, cost consultant
A quantity surveyor is a construction cost professional. In development finance, the lender usually appoints a QS to review the budget and building contract before the loan starts and to verify progress claims during construction.
An example
Before funding a construction loan, the lender's QS reviews the builder's contract and the developer's budget and reports whether the costs and contingency look adequate. Each month the QS inspects the site before a progress payment is released.
Why it matters
The QS report shapes how much the lender will fund and when. Delays in QS sign-off can delay payments to the builder, so borrowers should factor QS timing into their cash flow.
Points to check
Ask who appoints and pays the quantity surveyor, how often inspections occur and whether you receive copies of reports. Read the initial report before financial close, because it sets out the surveyor's view of the budget, contract and contingency. If the surveyor flags concerns, address them early. Monthly inspection fees are usually charged to the borrower, so include them in your budget.
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