Funding in phases
Can you stage funding around engineering signoffs?
Absolutely.
It’s often the smartest way to manage risk.
Staged drawdowns are a common structure in development finance.
Instead of releasing the full loan upfront, lenders disburse funds in portions aligned to key project milestones.
This protects both parties:
- Reducing risk for the lender
- Ensures funds are only released as verified progress is made
- Keeps developers on track and aligned with their construction schedule
Drawdowns are usually structured around key milestones:
1. Earthworks Completion
2. Civil Completion
3. Section 224c Certificate
4. Title Issuance
Each drawdown is conditional upon a professional sign-off, typically from a quantity surveyor (QS), a civil engineer, or both.
Their reports confirm completion and compliance at each phase, giving lenders the confidence to release funds.
This structure ensures that capital is only deployed when real value has been created on-site.
