You must provide a genuine cost estimate for proposed works when you're submitting a Development Application, Construction Certificate application, or Complying Development Certificate application.
Please read the information below to help you prepare a cost estimate in line with the Environmental Planning and Assessment Regulation 2021.
What must be included in your cost estimate?
The estimate needs to reflect the true market value of all costs, including associated labour and ancillary work.
In some cases, the estimate may be different to the actual cost you end up paying for the development. For example, if you source materials for free or second hand, or use your own labour (as an owner-builder), you still need to count the market value of these elements in your estimate.
A genuine assessment of the estimated development cost should include the full scope of works that you are seeking consent or approval for, including:
- Demolition costs
- Construction costs
- The costs associated with the preparation of buildings for the purpose for which they are to be used (such as the costs of installing plant, fittings, fixtures and equipment)
- Cost of landscaping works
- Cost of other ancillary work, for example retaining walls, sheds.
How to prepare your cost estimate
You can download our Cost Summary Table PDF, 206.46 KB to prepare your cost estimate. Note that this is suitable for development up to $2 million only (see the next section for more information).
You can also provide a cost estimate in your own format, as long as it includes:
- A list of all components of the proposed development (e.g. dwelling, retaining walls, shed)
- The estimated cost of each component
- A total estimated development cost for all works included in the application.
Who should prepare the estimate?
| Development value | Who can prepare the estimate |
|---|---|
Up to $100,000 | The applicant or a suitably qualified person |
Between $100,000 and $2 million | A suitably qualified person |
More than $2 million | A qualified quantity surveyor who is a member of a relevant professional body |
Please also note the following definitiions:
- Suitably qualified person - a builder who is licensed to undertake the proposed works, a registered architect, a qualified and accredited building designer, a quantity surveyor, or a person who is licensed and has the relevant qualifications and proven experience in costing of development works at least to a similar scale and type as the proposed development.
- Relevant professional body - for example, the Australian Institute of Quantity Surveyors (AIQS) or Royal Institution of Chartered Surveyors (RICS).
How Council verifies cost estimates
Council uses building cost indicators compiled by Rawlinsons Australian Construction Handbook to assess and verify the estimated development costs.
If a development proposal falls outside the parameters of this guide, we will treat it on its merits to determine if the cost estimate is adequate.
If Council determines that the estimated cost of your proposal does not reflect the industry standard, your application may not be accepted for assessment. If this happens, you will need to review your cost estimate then re-submit the application.
What if I disagree with Council's determination of the cost estimate?
You may choose to provide a detailed cost estimate of each component for Council to review. This must be prepared by a registered quantity surveyor.
More information
See the NSW Department of Planning, Housing and Infrastructure's Planning Circular for more information on calculating the genuine estimated cost of development.