What is a Council Cost Report?
The very first milestone of most new building projects is the approval of the development application (DA) by Council. The DA is a comprehensive collection of documents and reports required for the application to be approved. A Council Cost Report, also known as a Detailed Cost Report, prepared by a registered Quantity Surveyor (QS) may be one of these requirements. The purpose of this report is to enable the council to determine the Section 7.12/7.11 (formerly Section 94/94A) Contribution, which is payable by developers following the DA submission.
Effective March 4th, 2024, the NSW Department of Planning has changed terminology and reporting requirements. The Capital Investment Value (CIV) report is now known as Estimated Development Cost (EDC), which is the key construction cost calculation required in Council Cost Reporting.
Understanding the New EDC Requirements
The EDC is now divided into three (3) categories, each with different reporting requirements. They are:
- Below $3 million:
- The report can be carried out by any designation Affiliate or higher of the Australian Institute of Quantity Surveyors (AIQS).
- An elemental summary is calculated in the same format as previously reported under CIV reporting, including the completion of a Council form.
- Above $3 million:
- The report needs to be carried out either by a registered Quantity Surveyor that is a Member of the Australian Institute of Quantity Surveyors (MAIQS) or hold higher designation.
- A detailed elemental breakdown is calculated including GST, with EDC adoption as per the new AIQS guidelines and the Department of Planning, Housing and Infrastructure (DPHI) Planning Circular.
- State Significant Development (SSD) or State Significant Infrastructure (SSI):
- The report needs to be carried out by registered Quantity Surveyor that is a Member of the Australian Institute of Quantity Surveyors (MAIQS) or hold higher designation and be a Certified Quantity Surveyor (CQS) with the AIQS.
- A detailed elemental breakdown is calculated excluding GST, with EDC adoption as per the new AIQS guidelines and the Department of Planning, Housing and Infrastructure (DPHI) Planning Circular.
Please note that Affiliates of the Australian Institute of Quantity Surveyors (AIQS) are not authorised to prepare reports with an EDC over $3 million.
Understanding How the EDC is Calculated
According to the Environmental Planning and Assessment Regulation 2021 (EP&A), the Estimated Development Cost (EDC) of a proposed development encompasses the estimated expenses associated with:
- The design and erection of a building and associated infrastructure.
- The execution of works.
- The demolition of a building or works.
- Fixed or mobile plant and equipment.
However, certain elements are excluded from the EDC calculation. These are:
- Amounts payable, or costs of land dedication, or other benefits provided under conditions imposed under the EP&A Act, Division 7.1 or 7.2, or a planning agreement.
- Costs relating to a separate part of the development or project that is under a distinct development consent or approval.
- Land costs, including expenses related to marketing and selling land.
- Costs associated with ongoing maintenance or use of the development.
- Goods and Services Tax (GST) for State Significant Development (SSD) and State Significant Infrastructure (SSI).
“I’m submitting a DA, when should I obtain the Council Cost Report?”
EDC calculations must be carried out within 30 days of DA submission. So essentially, we should be the last consultant engaged as part of the DA process once all other documents and the design are finalised.
Why Choose Archi-QS?
- Qualified Professionals: Our team comprises qualified quantity surveyors who have Fellow grade membership with the AIQS and CQS designation, enabling us to carry out EDC reporting on all project types.
- In-depth Understanding: We possess a comprehensive understanding of the Environmental Planning & Assessment (EP&A) Regulation and its requirements concerning EDC calculations. This enables us to provide precise estimations while adhering to regulatory standards.
- Tailored Solutions: Each development project is unique, and our approach reflects this. We work closely with clients to understand their specific requirements and deliver customised reports that align with their objectives.
- Compliance Assurance: With Archi-QS, you can rest assured that your reports will meet all regulatory requirements outlined by the NSW Department of Planning. We meticulously follow guidelines and ensure accuracy and compliance throughout the reporting process.
- Streamlined Process: We understand the importance of efficiency in the development approval process. Our streamlined approach to reporting minimises delays and ensures timely submission of reports to facilitate smoother project progression.
Get in Touch Today
Whether you’re a developer, architect, or stakeholder involved in a development project, Archi-QS is here to assist you with your reporting needs. Contact us today to learn more about our services and how we can support your project’s success.