Glossary definition
Programme Delay
A delay to the planned construction programme that pushes back the expected completion date of a development project. Programme delays increase holding costs including rolled-up interest, extended preliminary costs, and monitoring surveyor fees.
Definition
A delay to the planned construction programme that pushes back the expected completion date of a development project. Programme delays increase holding costs including rolled-up interest, extended preliminary costs, and monitoring surveyor fees. Lenders will typically build in a buffer of two to three months beyond the developer's programme when setting the loan term, but significant delays may require a facility extension at additional cost.
See also
Closely related terms.
Rolled Up Interest
An interest arrangement where monthly interest charges are added to the outstanding loan balance rather than being paid by the borrower each month.
Practical Completion
The stage at which a building project is deemed complete and fit for its intended purpose, even though minor snagging items may remain.
Contingency
A budget allowance set aside for unforeseen costs during a development project, typically expressed as a percentage of build costs.
Monitoring Surveyor
An independent surveyor appointed by the lender to inspect the development site at regular intervals and verify that construction work has been completed to the required standard before each drawdown is released.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
What Happens When a Development Loan Defaults? A Step-by-Step Guide
A detailed walkthrough of the development loan default process in the UK, from initial breach notice through to enforcement, and what developers can do at each stage to protect their interests.
12 min read readReadGuide
Hidden Arrangement Fees in Development Finance: What Lenders Don't Tell You
Arrangement fees in development finance are rarely as straightforward as a single percentage. This guide exposes the hidden layers of fees that lenders charge and shows you how to negotiate effectively.
9 min read readRead
Where it shows up
Finance products using this term.
Ready to apply
Knowing the term is one thing.
Getting it on your term sheet is ours.
Send us the outline. We come back with indicative pricing from the right lenders inside a working day.