What Is a QS Cost Report and Why It Matters for Your Property Project

When planning a property development or construction project, understanding costs upfront is critical. This is where a QS Cost Report, prepared by a Quantity Surveyor (QS), becomes one of the most valuable tools in the process.

At Propti, we work closely with experienced quantity surveyors to help clients gain clarity, confidence, and control over their project finances from start to finish.

What Is a QS Cost Report?

A QS Cost Report is a detailed financial assessment of a construction or development project. It outlines the estimated costs associated with building works, materials, labour, professional fees, contingencies, and other project-related expenses.

The report is prepared by a qualified Quantity Surveyor and is commonly used by:

• Property developers

• Builders

• Investors

• Lenders and financiers

• Project managers

Its primary purpose is to provide an accurate, independent cost forecast to support decision-making and financial planning.

What Does a QS Cost Report Include?

While the level of detail can vary depending on the project stage, a typical QS Cost Report will include:

• Construction cost breakdown (trade by trade)

• Materials and labour estimates

• Preliminaries and site costs

• Professional fees

• Contingency allowances

• Escalation or inflation considerations

• Total project cost estimate

For lenders and investors, this breakdown provides transparency and confidence that the project has been costed correctly.

When Is a QS Cost Report Required?

A QS Cost Report can be prepared at various stages of a project, including:

Feasibility Stage

Used early to assess whether a project is financially viable before committing significant capital.

Pre-Construction

Provides detailed cost planning before contracts are signed or finance is finalised.

For Finance and Lending

Many banks and non-bank lenders require a QS Cost Report to:

• Validate construction budgets

• Assess risk

• Determine progress payment schedules

During Construction

Updated cost reports help track actual spend versus budget and manage variations.

Why Is a QS Cost Report Important?

1. Cost Certainty

A QS Cost Report reduces the risk of unexpected overruns by identifying realistic costs upfront.

2. Better Finance Outcomes

Lenders rely on independent QS reports when approving construction funding. A clear, well-prepared report can streamline approvals.

3. Improved Decision-Making

Developers and investors can assess whether design changes, materials, or scope adjustments are financially viable.

4. Risk Management

Contingencies and allowances help protect against unforeseen site conditions or market fluctuations.

QS Cost Report vs Builder’s Estimate

It’s important to understand the difference:

QS Cost Report	Builder’s Estimate
Independent and impartial	Commercial pricing
Detailed cost breakdown	Often high-level
Accepted by lenders	Not always sufficient
Based on market data	Based on builder assumptions

For finance and feasibility, lenders generally prefer or require a QS Cost Report over a simple builder’s estimate.

How Propti Helps

At Propti, we help clients:

• Engage the right quantity surveyor for their project

• Coordinate QS Cost Reports for feasibility and finance

• Ensure reports meet lender and investor requirements

• Integrate cost reporting into broader project planning

Whether you’re undertaking a residential build, townhouse development, or larger project, having the right cost information early can make all the difference.

Final Thoughts

A QS Cost Report is more than just a spreadsheet of numbers — it’s a strategic tool that supports smarter decisions, stronger funding outcomes, and better project control.

If you’re planning a construction or development project and need guidance on QS Cost Reports, Propti can help you get it right from the start.