QS Drawdown Facilities
Development lenders release construction funds in stages (drawdowns) only after a Quantity Surveyor (QS) has visited the site to verify that the specified works have been completed.
When a developer secures funding for construction costs, the lender does not hand over the entire build budget on day one. Handing over millions of pounds upfront would expose the lender to massive risk if the developer absconded or went bankrupt.
Instead, the funds are released in arrears via a Drawdown Facility. The developer must fund the first stage of the build using their own capital or supplier credit. Once that stage is finished, the lender's appointed Quantity Surveyor (QS) visits the site.
The QS Certificate
The QS verifies the quality and completion of the work and issues a certificate. The lender then releases the funds to reimburse the developer for that stage. This cycle repeats monthly until the project is finished, ensuring the lender's money is always secured by tangible progress on site.