None of the information provided is investment or tax advice.
You should always read the associated risks before deciding whether to invest. These can be found on the product pages as well as in our risks overview.
Please confirm you have read the information above.


Welcome to Downing LLP


Request information for

Product Offer Hero Title

Hello, thanks for your interest in investing with Downing. Please complete this form to receive the requested information.

Did you know. Risk warning. Take 2 mins to learn more.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
plus icon
document search icon 3
min read

What's the key to applying for construction project finance?

No items found.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.


  • asd
  • asd
  1. asdasd
  2. asd
  1. asd


Every construction project is unique; to some extent a prototype, with its own subtleties, uncertainties and risks. In order to articulate these project-specific risks and demonstrate that appropriate measures and controls are in place, experienced funders will expect to see a professional feasibility report and a coherent project governance regime from developers.  

The inclusion of both these in a funding application will be viewed as a key predictor of construction project success or failure. The more robust and clearly explained they are, the smoother the related due diligence is likely to be. But just how should developers go about producing this standard of feasibility report and governance regime in practice? Let’s look in more detail: 

The development appraisal and feasibility assessment

A typical development project funding request includes a business case development appraisal featuring, amongst other things, forecast delivery costs, timescales, and risk allowances. 

A developer’s successful track record may be a plus when seeking funding but it won’t remove the need for a professional project-specific feasibility study. Admittedly, even a development appraisal based on the most thorough project-specific feasibility investigations won’t be completely risk-free, although it’s likely to be much more secure than one based on generic assumptions, gut feel or experience from previous projects where similarities may be limited. 

Now for some specifics. An appraisal that includes a fixed-price, tender-based, budget is most suitable, but funding applications are often made long before a project reaches tender stage. What’s vital is that the basis of the budget is transparent: if not based on tenders, has it been produced by an independent professional quantity surveyor and to what stage have the design and feasibility study been progressed? And, a budget based on a Design & Build main contract is likely to be more readily and positively risk-assessed than one that is centred on a multiple contract cost-plus approach. 

That’s why, when presenting a feasibility study, it’s important to clarify the basis and status of the budget and, crucially, to differentiate between elements that are fixed price and those that aren’t. This will help the funder to model appropriate risk-adjusted contingencies, which can be reviewed as the project matures, prior to financial close. 

Project governance strategy and structure

 ‘The rot starts at the top’ is a phrase that isn’t heard enough in project management. Often, funding applicants overlook project governance. But this can cause due diligence to drag on unnecessarily and may lead to more onerous funding terms or even a refusal to offer terms altogether. 

To be properly effective, a project governance strategy and structure should clearly explain the top-down organisational, contractual and procedural approach to project decision-making, control and accountability to enable funders to assess governance risk. 

Approaches to project governance range from what might be described as ‘full institutional’ to ‘extreme entrepreneurial’. The former, more formal risk-averse and ‘perfect world’ approach is naturally preferred by funders, but comes at a premium that may be prohibitive for many developers.  Deciding not to adopt an institutional approach needn’t necessarily be a barrier to funding. What matters most is how comprehensive and clear the structure is, so that funders can easily assess how far removed from the ‘perfect world’ is the developer’s approach to governance.

A simple way to do this is to present the project governance structure at the outset, in a diagram tailored to reflect the specific funding and corporate structures and procurement route, identifying contractual, collateral warranty and instructing-reporting links between key stakeholders. 

Summing up

Of course, funders may consider many other factors when assessing the risks associated with backing a project. However, what is crucial for all projects is the thought and effort applied to the feasibility assessment and project governance. Failure to produce either of these to a high standard is gambling against Murphy’s law - that whatever can go wrong will go wrong - and that’s not in the interest of funders or developers.

This article is for information purposes and no reliance should be placed upon it. Any personal opinions expressed are subject to change and should not be interpreted as investment advice or a recommendation.


We're here to help

If you are a financial adviser, or discretionary fund manager call 020 7630 3319 or email us at

If you are a private investor call  020 7416 7780 or email