Construction progress reports for lenders in Germany: independent monitoring before each drawdown
The bank releases the next tranche only when an independent progress report is available? We inspect the site, determine the percentage of completion per trade, reconcile it with the payment plan and invoices and deliver a report with photos that the lender can review.
A construction progress report (Bautenstandsbericht) documents for the financing bank how far a construction project is actually complete at a reference date. It is the lender's technical basis for releasing the next drawdown. Schneider Theißing prepares these reports through civil engineers: site inspection, completion per trade, photo documentation, reconciliation with payment plan and invoices, and notes on defects and risks. In international transactions this role is often called lender's technical advisor or project monitor during the construction phase.
- One-off or for each drawdown
- Report with photos, list of trades and traceable weighting
- Independent of designers and contractors
- Proposal per project; inspection date by arrangement
When you need a progress report
In construction finance the bank does not pay out the loan in one sum but according to construction progress. Before each tranche it wants to know whether the work paid for has actually been done. For developer finance and larger projects it often requires a report by an independent engineer.
Delays often arise at the same point: the report cannot be reviewed. Percentages without weighting, photos without reference, invoices without reconciliation. We deliver the report so that the bank can review it with as few queries as possible, and we tell you beforehand which documents we need.
- The bank requires a progress report before payout
- The architect does not issue a progress confirmation
- The developer reports progress you cannot verify
- The bank returned the last report with queries
- Invoices and progress do not match
- You need the report at short notice
Request a progress report
Key facts
- What you receiveProgress report with percentage of completion per trade, photo documentation, reconciliation with payment plan and invoices, defects and risks.
- Who it is forBanks and lenders, developers, investors and owners with construction finance.
- WhereFrankfurt Rhine-Main, Bergstraße and Rhine-Neckar; registered office in Zwingenberg between Darmstadt, Mannheim and Heidelberg; Germany by project.
- Who reviewsCivil engineers from the management team, independent of designers and contractors. Contacts are the managing directors Moritz Schneider and Christoph Theißing.
- LanguageReport in German or English; site communication in German.
- FeesProposal based on project size, reporting cycle and depth of review, in writing before appointment.
Working for the lender
You appoint us, we report to you. On the same project we do not work for the developer at the same time. For several financings we agree report structure, fee per report and contacts once. After that you call off each project by email, without a new proposal round. We agree the structure of the first report with your credit department; all follow-up reports have the same structure and weighting.
For ongoing monitoring over the whole construction period see our German page Projektcontrolling für Banken. For data center projects, lender monitoring is part of data center construction management.
What the progress report contains
Site inspection at the reference date, photo documentation per trade and building element, with reference to drawings and bill of quantities.
Completion per trade, weighted by cost share, and overall completion in percent with a traceable derivation.
Reconciliation with payment plan, interim invoices and tranches already paid out; notes where payment and performance diverge.
Visible defects, open work, schedule risks and cost risks relevant to the lender.
A clear statement whether the requested drawdown is covered by the construction progress from a technical point of view.
For several drawdowns the same structure and weighting, so that the lender can compare the progress over time.
Bautenstandsbericht, Bautenstandsbestätigung, MaBV: what is what
A Bautenstandsbestätigung is usually a short bank form in which a site manager or engineer confirms that a certain construction stage has been reached. A Bautenstandsbericht goes further: it supports the percentage of completion with photos, weighting and reconciliation with invoices and names the risks. Which form the bank requires is stated in the loan agreement or in the bank’s letter.
When residential property is bought from a developer, the German Real Estate Agent and Developer Ordinance (Makler- und Bauträgerverordnung, MaBV, section 3) sets the instalments in which the buyer pays. The buyer can have an independent engineer check whether a construction stage has been reached before releasing the instalment. We do that as well.
- Bautenstandsbestätigung: bank form, stage reached yes or no
- Bautenstandsbericht: percentage of completion, photos, invoice reconciliation, risks
- MaBV instalment check: check of the construction stage before an instalment is paid to the developer
- Project controlling for banks: ongoing reports over the whole construction period
What the report does not do
The report records the visible construction progress at the reference date. It does not confirm that the work is free of defects, does not examine concealed building elements, structural stability or the permit situation, and does not replace a valuation. Whether an instalment is legally due is assessed by the contracting parties and their lawyers.
Frequently asked questions
The lender is waiting for the report?
Describe the project, the stage and the deadline. You receive a proposal and a date for the site inspection.