A Council Cost Report, otherwise known as Cost Estimate Report, is a document that developers are required to submit when they plan on building a residential, commercial or industrial structure in NSW. The council usually call it Registered Quantity Surveyors Reports.
A council cost report is filled out and submitted together with the Development Application (DA) and Construction Certificate (CC). The document is presented directly to your local council. Depending on the overall costs of the project, two types of cost estimate report forms are available. Investors need to prepare one type of form for projects that are estimated to cost under $500,000, and another form is submitted for projects that are worth over $500,000.
Section 94 reports are usually a precautionary measure defined by the local council. They want to make sure to have sufficient funds in place for community purposes, such as infrastructure maintenance, investments in education, public centres, etc.
DA report or Developmental Approval Report is the first step in approving your construction project by the local council. Basically, it’s a collection of reports and documents you will need for your building project to get them approved. This report also helps identify the authority fees that you, as a developer need to pay.
One of the requirements to get your project approved is to have a Council Cost Report created by a quantity surveyor. It is required when the estimated cost of the development project exceeds a limit defined by a local council.
Once the cost of a certain construction project reaches and surpasses a certain value, the NSW council demands a professionally made “Registered Quantity Surveyor’s Cost Report”. The value of these costs is usually between $500,000 and $3,000,000. This report is necessary to verify the construction costs.
This is also a supplementary document to the DA or CC certifications.
The purpose of the report is to enable the calculation of the fees for Section 7.12 contributions. Section 7.12 was previously known as Section 94 Contributions.
A Section 94 Contribution is a fee that an investor must pay to their local council. This fee is paid when the estimation of a construction project reaches or is higher than $500,000.
The contribution is then implemented in regional infrastructure or amenities for the benefit of the local community, such as parks, child care centres, road upgrades, city centres, etc. However, Section 94 doesn’t cover sewage facilities. Also, local councils are allowed to collect Section 94 contributions only when a defined Section 94 plan is in place for that area.
The main reason that you need a Section 94 report is that they are required by law to be submitted along with your development application as we already pointed out at the beginning of our post.
The secondary reason you need it is to ensure that you don’t unexpectedly blow out your construction budget and know exactly where your money is going. You should hire a professional quantity surveyor to create a report prior to the commencement of your development. From there, the report can be updated on a weekly, bi-weekly or even monthly basis. As a result, you’ll be keeping track of your costs in real time, ensuring you stay on budget for the duration of your project.
Our Section 94 reports will focus on two main areas, being: Main Elemental Costs and Sub Elemental Costs.
These include building components, internal and external fabrics, internal and external services, superstructure preliminaries, substructure and internal finishes, and more.
These include individual components used to create main components such as doors, walls, columns, windows, plumbing etc.
When we gather all of the above information, we will create a detailed report based on the size of your development. Our report will include an estimated total cost for the project, as well as a rate per square metre.
It’s not uncommon for projects to go over budget, as well as timeframes for that matter. Professional quantity surveyors are here to help your project stay on budget and on time. Here’s how a business like ours can help you:
We helped numerous construction businesses in NSW with our cost estimates services for building projects. Get your report today as required by the NSW local council.