Financial Reporting
We provide construction financial reporting for owners and boards. A cost report sets out a project's cost position and where it's heading. We work on projects across New Zealand.
Overview
When you need a construction cost report
Construction financial reporting tells you where a building project's costs stand right now. We write cost reports for owners and boards who need to make decisions about those costs. It's one of our post-contract services, which cover the period after the building contract is signed.
When cost reporting is late or unclear, an overspend can go unnoticed for too long. Money can also be needed sooner than planned, without warning, and a board may end up deciding on incomplete figures.
The basics
The terms in a construction cost report
These three terms come up in a cost report, and each one has a set meaning.
Contract sum
The price the contract sets for the building work.
Variation
A change to the work listed in the contract. A variation can change the price.
Payment claim
The contractor's written request to be paid for work carried out under the contract.
In New Zealand
Payment claims and the cost position
Under the Construction Contracts Act 2002, whoever carries out construction work under a contract has the right to progress payments. Each payment claim changes the project's cost position. Our page on payment claims and variations explains how and when a claim has to be answered.
What you get
A written view of where the project stands
You get a written cost report that shows where the project stands against its contract.
What this report is not
The report shows the cost position at the time it's issued. It doesn't decide what is payable under the contract, and it isn't a legal opinion. It also doesn't promise that costs will stay where they are.
Who this is for
This service is for owners and boards with a project under construction.
It also suits body corporates that are managing major building work. A body corporate is made up of the owners of all the units in a unit title development.
If we already handle your contract administration or assess your payment claims, we can prepare a cost report alongside that work. You can also have a cost report on its own.
How it works
How financial reporting runs
- 01
Send what you have
Send us the contract, the payment claims so far and any paperwork on variations.
- 02
Where things stand
We work out where the project sits financially against its contract.
- 03
Your cost report
We send you a written report on the cost position.
- 04
Talk it through
We can talk you through the report if you'd like.
Why AMS
How we approach cost reporting
A separate view of the position
The report gives you a view of the cost position that's separate from the payment claims.
Traced back to the contract
Each figure ties back to the contract and the records behind it, so you can see where it came from.
Room to change course
If a report picks up a cost problem during the build, you can still decide how to deal with it.
Frequently asked questions
How often is a quantity surveyor's cost report issued?
It depends on the project and what you need from the report. A cost report can follow the payment claim cycle in the contract.
What is the difference between claimed and paid amounts?
A claimed amount is the amount a payment claim says is due. A paid amount is what has actually been paid. A cost report can show the gap between the two.
Do you produce reports for funders?
No, we don't provide bank or lender drawdown reports. A drawdown is a release of loan money to pay for the work. We also don't act as a lender's independent monitor. If your lender needs a drawdown report, ask them who can provide one.
What is construction cost control?
Construction cost control means keeping a project's cost in check by tracking how decisions and changes affect it. For decisions made during the build, government guidance says to be clear whether they will affect your contract and costs. It also says to keep track of the effect of any changes. Financial reporting is one way to do that.
Where do retentions fit in cost reporting?
Retentions stay part of the project's cost position until they're paid out. On a commercial construction contract, whoever withholds retention money can have legal requirements to meet. A cost report doesn't take the place of meeting those requirements.
Need a quantity surveyor for your next project?
Send through your plans or a short description of the project and we will come back to you.