What are Drawdown Certifications?
Drawdown Certifications are verified Progress Payments from your Lender, directly to your Builder to pay for work done on your Building Project.
They are called Drawdown Certifications, because usually a third party, such as a Quantity Surveyor or Estimator has to ‘certify’ that the ‘drawdown’ of available loan funds corresponds to the value of work done.
For example, if your Builder has put the Roof on your Building, he would normally send you an invoice, for a Progress Payment to be made. You would send the Progress Payment to your Lender and they would get a suitably qualified independent Cost Professional such as a Quantity Surveyor or Estimator to assess the Claim. They would then report back to the Lender, who approves or rejects the Progress Payment based on the results of the assessment.
Lenders will always ensure that they are getting value for money, before approving the Progress Payment and issuing a Drawdown Certificate.
Lenders always make sure that you contribute your own funds to the Building Project before they will start lending their Funds.
When preparing Drawdown Certifications, it is essential that experienced and qualified Building Cost Consultants are used, to ensure that the value of work on your Building Project, is being accurately assessed.
If you or your Lender, require a Quantity Cost Professional as an independent third party for preparing Drawdown Certifications on your Building Project, tell us what type of Building it is and we will find the appropriate Quantity Surveyors or Estimators.