In 2023 Mitchell Brandtman began the process of refreshing it’s brand. Through extensive research gathered to provide insights about our brand – how our clients see us, and how we see ourselves – we discovered our true purpose, position, unique selling proposition, and brand story.
What this process uncovered is that at its core, Mitchell Brandtman is about enabling success for all of its stakeholders:
In an effort to streamline the calculation of development costs, the NSW Government has introduced a new method called “Estimated Development Cost” or EDC. EDC will now replace previously used terms such as “Cost of Development” and “Capital Investment Value (CIV)”, which have been made redundant. As of March 4th 2024, the EDC is being used by professional bodies working with the NSW Government.
What is Estimated Development Cost (EDC)?
EDC was created as a simpler, easier, and more transparent way to estimate the development cost of a project and will now be used across the planning system. The implementation of the EDC will alter the way fees are calculated for developments across local, regional, and state-significant development.
The EDC of a proposed project will play a crucial role in many planning aspects, most significantly by:
• Determining the appropriate development approval pathway,
• Calculating the associated assessment fees, and
• Dictating specific Development Application (DA) requirements.
How was EDC created?
The EDC reform aims to respond to the Independent Commission Against Corruption’s Operation Dasha report, which recommended changes to the development process. These changes were primarily brought about the increase transparency of development costs of projects and reduce the risk of corruption.
The Department of Planning, Housing and Infrastructure (DPHI) is implementing this change by amending the Environmental Planning and Assessment Regulation 2021 and other relevant planning policies.
Where does EDC apply?
As the new primary system for determining project costs, EDC will be implemented on projects across different industries and categories, including:
Rules for Using EDC
As with all new Policy and Legislation, rules and laws have been put in place to govern the necessity of EDC. Mitchell Brandtman has provided a guide for EDC requirements below:
Projects Costing more than $3 Million
On projects that have a value of more than $3 million, an EDC report must be prepared by a Qualified Quantity Surveyor (AIQS/RICS member etc.) Additionally, the EDC Report must follow the AIQS Practice Standard.
State Significant Applications
For projects that are considered State Significant Applications, and EDC report must be created in line with the AIQS Practice Standard by a Qualified Quantity Surveyor. The EDC must be submitted in the “Standard Form of EDC Report – State Significant Projects” and dated within 30 days of submission.
Projects Costing less than $3 Million
On projects with a value of less than $3 million, Planning NSW recommends preparing a Cost Estimate Report at a minimum. Please note that projects conducted with Individual Councils will also have specific application requirements which must also be followed.
How can Mitchell Brandtman help?
Mitchell Brandtman understands that the introduction of the EDC legislation could be a source of difficulty for many of our clients. To this end, we have ensured that our experienced team of Quantity Surveyors is fully aware of the EDC reporting requirements.
Detailed Project Knowledge: Mitchell Brandtman goes beyond following guidelines. Each project is treated uniquely, and we will work closely with our valued clients to ensure we have a full understanding of the needs of development. This will allow us to create and deliver bespoke EDC reports that seamlessly align with the project objectives.
Unmatched Experience: Our team is made up of expert Quantity Surveyors, with years of knowledge in the industry. Each of our team members is accredited by the AIQS and will leverage their extensive construction and development knowledge to deliver accurate and compliant EDC reports that meet all regulatory requirements.
Efficiency & Peace of Mind: Mitchell Brandtman understands the importance of efficiency throughout the development approval process. As such, we have tailored our approach to EDC reporting to ensure a timely delivery for our clients – achieved by minimising delays to enable successful completion. This allows our clients to focus on their primary goal, bringing projects to life, with the peace of mind that comes from knowing your EDC reporting is in expert hands.
To find out more information about the Estimated Development Cost Report visit this link.
The rolling data information indicators show it’s taken a slight dip in the last quarter but remains at incredibly high levels. This has been recognised by the State Government, driven by concerns of escalating costs which has prompted a much-needed independent review of Olympic Games infrastructure projects and their value-for-money propositions. Conversely, residential BAs continue a downward trend, albeit still at record high levels compared to pre-Covid times.
The 2023 / 2024 Summer season has wreaked havoc across the Qld coast with cyclones and flooding across the northern coast, and similar down the SE Qld pocket. Storm damage across the state is yet to feed into the insurance work that will absorb trades that crossover into the residential sector and potentially provide a short sharp spike in demand for particular trades such as roofing, cladding, flooring, linings, paint and plaster within the smaller scale developments.
Feasibilities continue to be challenged across large scale multi-residential developments and institutional developments. There is an ease for smaller scale residential developments and industrial projects, however, the key to success is largely through leveraging developer/builder relationships.
In our journey to grow and nuture our team and work with our loyal and valued clients, we achieved some great things along the way.
Our team is grateful for your support.
Thank you for being on the 2023 journey with us and we look forward to a fantastic year ahead with more great (and exciting) things to come.
Bring it on!!
Mitchell Brandtman has got you covered…
Now is the time to start thinking about your projects and in particular your obligations prior to Christmas 2023 and your plans for the New Year.
one of the most critical obligations to plan for leading into Christmas are Progress Claims/ Payments. So we have put in place a target date of Wednesday 13th December 2023 being the last day for all site inspections and all progress claim information. This will ensure all reports are completed and issued prior to Christmas shutdown which is the 21st of December 2023 to the 8th of January 2024.
Remember to also discuss payment timing dates with the rest of your project team and specifically, your Financier to ensure obligations can be met through this period.
Looking at commencing construction early in the New Year? To ensure we can cater for your project’s pre-funding requirements, we have set a target date of Friday 1st of December 2023 to receive all required information for Pre-Funding Initial Reports. This will ensure that any new Initial Reports are issued prior to the Christmas shutdown and will help you hit the ground running in 2024.
We understand that with the “silly” season approaching it is not always possible to predict when a report or assessment will need to be done. So if you have any concerns, please do not hesitate to give us a call, right up until COB Wednesday 20th of December 2023 and we will be happy to talk through how we can help.
Please contact our team at MB to book your Pre-Christmas inspections / reports.
Our office will be closed from 11am Thursday 21st of December 2023 and will re-open on Monday 8th of January 2024.
We hope you have a very Merry Christmas and a safe and happy holiday.
This Mitchell Brandtman Quarterly Construction Cost Update has been put together to help keep you informed on the movements of the market to better position yourself for your current and future projects.
All markets across Queensland remain hot with the total value of building approvals hitting new peak levels. While the dynamic of project types is shifting, the sheer volume of new work to deliver continues to compound an already frustrated industry. As anticipated, domestic construction has eased slightly with signs of trade level competition emerging, however the public sector commitment has dominated the latest quarter of data and will continue to drive a divide between small and large scale construction activity and pricing.
The record public sector spend will dominate the conversation and attention of our upper tier Contractors, leaving delivery in the private sector challenged from a capacity, capability and feasibility point of view. Activity levels will continue to influence building costs differently across the various sectors and regions as these packages roll out across their local markets.
Opportunities will continue to emerge in the smaller scale, quick to market type product which suits the current risk averse trade sector. Larger and more complex developments will need to approach the market with an open mind for the foreseeable future.
Mitchell Brandtman’s team of experts is ready to help you with your grant applications for the Go For Gold Fund.
The Queensland Government has recently announced Round two of the Go for Gold Fund for schools across Queensland. The Fund is open to schools across Queensland for both new and upgraded sports infrastructure on projects such as athletics pitches, multi-purpose courts, ovals, and more. This means it’s the perfect time for schools to consider upgrading or installing new facilities for their students.
Mitchell Brandtman is ready and able to assist with cost advice and estimates for potential projects as part of the grant application. Our team of Quantity Surveyors has extensive experience working on sporting, recreation and education projects, positioning us perfectly to provide an accurate grant estimate for you and your clients.
For further details on how we can help, please contact Partner, Caitlin Shields PH – 07 3327 5034 or E – cshields@mitbrand.com
More information on the Go For Gold Fund is available at https://www.qld.gov.au/about/b…
