Tag: Section 94

Embarking on a construction project can be daunting, with numerous factors to consider and potential challenges to overcome. In such situations, having a building quantity surveyor by your side can make all the difference. These professionals can help guide the construction process, offering invaluable assistance and expertise at every stage. From helping you set realistic budgets to ensuring compliance with regulations and overseeing financial aspects, a building quantity surveyor is an essential partner in the construction journey.

Determining Budget in the Preliminary Design Stage

Determining the budget in the preliminary design stage is crucial for managing cash flow and ensuring the smooth progression of construction projects. Various factors, including contractor availability, interest rate fluctuations, adverse weather conditions, and material price fluctuations, can impact project timelines and budgets. To mitigate these risks, accurate construction cost reports are essential. Engaging a qualified building quantity surveyor helps to navigate the complexities of construction projects, minimising the risk of budget overruns and delays.

These professionals prepare comprehensive cost reports before project commencement, providing ongoing updates as necessary. By inspecting development plans and consulting industry standards like the Australian Cost Management Manuals, quantity surveyors calculate development costs accurately. They consider factors such as main elemental costs (e.g., superstructure, substructure) and sub-elemental costs (e.g., windows, air conditioning), providing detailed insights into project expenses. Through this process, stakeholders gain a clear understanding of expenditure distribution, enabling them to manage finances effectively throughout the project lifecycle.

DA & Section 94 Reports

If you’re a developer gearing up for a project with an estimated cost of $500,000 or more, local council regulations may require you to provide Section 94 contributions. These payments facilitate the provision of new services and public amenities to accommodate the needs of the community impacted by your development. Section 94 reports, also known as cost summary reports, play a crucial role in ensuring compliance with council levies under Section 94 of the Environmental Planning and Assessment Act 1979. These reports meticulously detail all construction project costs, ensuring accurate calculation of required contributions. Working with experienced quantity surveyors is essential to navigate this process efficiently and accurately.

A building quantity surveyor acts as a neutral, independent party, ensuring adherence to council standards and minimising the risk of undervaluing or overpaying contributions.

Financial Planning

Before proceeding with your development project, securing finance is a crucial step, and obtaining a bank prefunding report is essential for this process. These reports provide banks with a comprehensive overview of your project’s costs, potential return on investment, and your ability to repay the loan. Working with experienced quantity surveyors ensures that these reports are thorough and accurate, meeting the stringent requirements of major Australian lenders such as Westpac, CBA, and NAB.

Bank prefunding reports involve detailed assessments of your chosen builder, comparisons with benchmarked data, and the presentation of fixed-price building contracts. Additionally, for larger developments, evidence of pre-sales may be necessary. Following finance approval, lenders may request ongoing updates on project progress, including progress drawdown reports and cash flow statements. Engaging reputable quantity surveyors mitigates risks associated with unreliable builders, ensuring a smooth project execution. These professionals consider various factors such as site size, zoning regulations, concept drawings, builder’s track record, material and labour costs, project feasibility, timelines, and overall project viability to provide comprehensive reports that meet all financing requirements.

Construction Phase

During the construction phase, progress drawdown reports are vital documents in the payment process for projects. These reports provide project financiers with the assurance that milestones have been achieved, facilitating the release of funds for ongoing work. Conducted with thorough attention to detail, these reports involve comprehensive site inspections to verify milestone completion and compliance with relevant regulations and standards. By closely monitoring project progress and identifying any deviations from budget or design, drawdown reports help ensure projects remain on track and financially viable.

A qualified building quantity surveyor can ensure all aspects of the project are appropriately documented. The process typically includes evaluating progress claims, confirming design compliance, checking insurance coverage, and validating other necessary certifications and permits. Such detailed reports not only provide transparency but also contribute to the successful management and execution of construction projects.

Why choose a building quantity surveyor?

In the world of construction, making the right choice when selecting a contractor can make all the difference in the success of your project. Engaging a building quantity surveyor from Section 94 ensures that your project has an experienced professional on your side throughout the entire construction process.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.

When it comes to property development, there are several options to consider, such as greenfield, infill, and brownfield developments. Each type of development has its advantages and disadvantages. However, in this blog, we will focus on the differences between greenfield and infill development and how they impact Section 94 contributions.

Greenfield Development

Greenfield development involves building on previously undeveloped land, such as farmland or natural vegetation. These developments can range in size from a few residential lots to entire new towns or cities. One of the significant advantages of greenfield development is the ability to plan and design the entire development from scratch. This allows developers and planners to create an integrated and cohesive community complete with the necessary infrastructure, amenities, and green spaces. Greenfield developments tend to be less complicated than infill developments, as there are fewer existing structures and infrastructure to consider.

However, greenfield development also comes with some drawbacks. Building on previously undeveloped land can be expensive since the necessary infrastructure must be built from scratch, plus if some necessities such as schools and public transport are not built adequately on time it can lead to significant traffic and other community issues. Additionally, greenfield developments can have a significant impact on the environment and local ecosystems, as natural habitats and wildlife are often displaced.

Infill Development

Infill development refers to the process of developing vacant or underutilised land within existing urban areas. This type of development can range from single residential lots to larger multi-use developments, such as mixed-use apartment buildings or shopping centres. Infill development has become increasingly popular in recent years, as it allows for the revitalisation of urban areas while minimising the environmental impact. Infill development can also be more cost-effective than greenfield development, as the necessary infrastructure is already in place.

However, infill development can be more complicated than greenfield development, as developers and planners must work around existing infrastructure, zoning regulations, and community expectations. Infill development can also be more disruptive to residents and businesses, as construction can cause road-works and other disruptions to daily life. There are also environmental impacts to consider with infill developments, if established backyard trees and vegetation are demolished to be replaced with housing.

Examples of Greenfield and Infill Development Projects

Greenfield development projects include new housing estates on the outskirts of cities, industrial parks built on previously undeveloped land, and large-scale commercial developments. In contrast, infill development projects include the conversion of disused buildings into residential apartments, the construction of new homes in established urban areas, and the development of brownfield sites.

Social and Economic Impacts

Greenfield development can have both positive and negative social and economic impacts. It can create new employment opportunities, boost local economies, and provide much-needed housing in areas with high demand. However, it can also lead to increased traffic congestion, as it often contributes to car dependency – which can negatively impact residents and may contribute to urban sprawl and the loss of farm and bushland. Infill development can help to address some of these concerns by utilising existing infrastructure around strong transport networks.

What is Brownfield Development?

Brownfield development involves the redevelopment of previously industrial or commercial land that may be contaminated with pollutants, meaning the area may require re-mediation before development occurs. The process offers a sustainable way to revitalise areas that have fallen into disuse, creating new job opportunities, and improving the local economy. Moreover, it can help protect natural habitats and agricultural land, reducing the need for greenfield development. However, brownfield development can be complex and expensive due to the extensive re-mediation required. In recent years, the approach to urban renewal has gained increasing popularity despite these challenges. This is primarily due to the presence of established infrastructure in the area, which offers the potential to develop medium-high density housing in proximity to various amenities.

Section 94 Contributions

One of the main differences between greenfield and infill development is the impact they have on Section 94 contributions. Greenfield development often requires significant investment in new infrastructure and facilities, such as roads, sewerage, and electricity, to support the development. As a result, greenfield projects have a higher Section 94 contributions cap for large scale developments to cover these costs. In contrast, infill development generally takes place in established areas with existing infrastructure, reducing the need for new infrastructure and the associated costs. This has historically resulted in a lower Section 94 contributions cap for infill development projects.

How do Greenfield and Infill Development Impact Section 94 Contributions?

Section 94 contributions are fees imposed by local councils on new developments to fund necessary infrastructure and community amenities. They are crucial considerations for developers and planners, regardless of whether they engage in greenfield or infill development. In greenfield development, developers and planners can design and plan the entire development from scratch, allowing them to factor in necessary infrastructure and amenities and negotiate Section 94 contributions in their construction budgets easily. In contrast, infill development is more constrained by existing infrastructure and community expectations, which can make negotiating Section 94 contributions more challenging. Moreover, existing infrastructure may be inadequate to support the new development, necessitating higher Section 94 contributions to fund necessary upgrades.

Are you looking for a quantity surveyor to sort out your Section 94 contributions?

If you are navigating the complexities of Section 94 contributions for your next development project, consider hiring one of our experienced quantity surveyors at Section 94. Our team of professionals can provide accurate cost estimates for infrastructure projects and assist with accurate and timely Section 94 reports, so you do not end up overpaying or delaying your project.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.

Section 94 contributions are an important part of financing community infrastructure in Australia. However, navigating the complexities of these levies can be challenging, especially when it comes to determining the appropriate payments in a timely manner, without it leading to project delays. This is where the expertise of a Sydney quantity surveyor can come into play.

Understanding Section 94

Section 94 levies are fees charged by local councils in NSW to fund community infrastructure projects such as roads, public transport, stormwater, and other infrastructure. These levies are calculated based on the development’s impact on the local community and the cost of providing the necessary infrastructure. Understanding the calculation process is crucial for developers and planners to ensure that they are paying the correct Section 94 contribution total.

The calculation of Section 94 contributions roughly translates to about 1% of the proposed development cost for projects estimated to cost over $500,000. Previously, this was capped at a total contribution of $30,000 for ‘greenfield’ (undeveloped) areas, and $20,000 for infill areas, for each dwelling or residential lot authorised to be created, however, this was recently changed for some developments.

Hiring a Sydney Quantity Surveyor

A quantity surveyor in Sydney can help developers and planners navigate the complexities of Section 94 levies. Quantity surveyors are experts in the construction industry and have experience in calculating the cost of infrastructure and building projects. They are usually hired at the beginning of a project to estimate the cost of development and provide the developer with a report on where money will be spent. After the builder and developer receive a cost estimate for their project, a Sydney quantity surveyor can use this information to calculate what Section 94 contributions will be required. Hiring an independent expert to provide cost-estimating services means that estimation will be accurate, and developers will not be overcharged for Section 94 contributions.

Communicating with Local Councils

Developers and planners should engage with local councils early in the development process to understand the requirements for Section 94 contributions, as these may differ depending on the development context. Local councils may have different requirements for Section 94 levies, especially in greenfield lots and areas that require establishment.

Engaging with Industry Experts

Another expert tip for developers and planners to navigate the complexities of Section 94 levies is to engage with industry experts. Architects, engineers, and town planners can provide valuable insight into the impact of development on the local community and the necessary infrastructure requirements. By engaging with industry experts early in the development process, developers and planners can ensure that their development plans align with the council’s requirements and understand whether their business will require significant contribution requirements. Industry experts such as a quantity surveyor in Sydney can also assist in providing accurate cost estimates for infrastructure projects and help developers and planners swiftly process Section 94 contribution totals to get on with the job promptly.

Providing Accurate Information

Providing accurate information is crucial for developers and planners to navigate the complexities of Section 94 contributions. Local councils require developers and planners to provide detailed information about their development, including the number of dwellings, the size of the development, and the estimated cost of the project. Incorrect information and poor regulatory compliance can lead to significant extended delays in projects getting the green light to go ahead. This can ultimately lead to cost blowouts and decreased project feasibility.

Do you need a quantity surveyor in Sydney?

While Section 94 contributions are an important way to finance local community infrastructure, there is no point in letting them lead to withheld development due to tedious or incorrectly detailed Section 94 reports. Speak to an expert today to ensure correct and appropriate Section 94 contributions occur for any new projects in a timely manner. At Section 94, our team of highly qualified quantity surveyors can help organise all the required and recommended quantity surveyor reports for your development.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.

What is Medium Density Development

Medium-density (mid-density) development is a type of housing development that bridges the gap between single-family detached houses and high-rise apartments. Most Australian suburbs in east-coast cities will have medium-density housing options in some capacity in areas of the suburb where there is greater demand for people to live. Some examples include townhouses, du/tri/quadplexes, units, flats, 3-story terrace houses, small apartment blocks up to 4-5 stories tall and mixed-use developments. This type of development usually does not have a lot of the shared facilities that are common in high-density dwellings, but also has larger dwelling sizes.
Due to the increased dwellings in an area, there will inevitably be increased pressure on local infrastructure, which is where Section 94 contributions come in. More on that later.

Why does mid-density development occur?

The introduction of some mid-density development is the steady, natural progression of a low-density neighbourhood when there is increased demand to live within an area, without dramatically transforming the neighbourhood. It would feel out of place for a neighbourhood made mostly of single-family homes to have a 20 story high rise building placed in the middle of it, but an increased number of two-story units and three-story townhouses appearing would be pretty natural. This type of development can occur when a local government and council decide to rezone the land due to their belief that there is adequate infrastructure available for the community to sustain it, alongside future infrastructure projects being developed to help support the growth.

Factors that increase demand in an area and are considered for zoning changes include proximity to employment/ employment hubs, lots of facilities within walking distance, strong public transport connections and access, good education, and great public space such as parks.
While each state and city will have their own dedicated zoning rules and plan, building restrictions for different areas can vary on a street by street basis and their requirements of the local community.

Benefits of mid-density development

The immediate benefit of medium-density development is having an increased housing supply so more people can live within an area, meaning more employment opportunities, local businesses, etc. More people living in an area also means a greater chance of new public infrastructure and transportation.

Mid-density developments are inherently more affordable than detached houses so there will be a varied supply of housing types available to meet the differing requirements and budgets of individuals planning to live in the area. However, rezoning also has positive consequences for existing landowners in the area. The land value of their properties has immediately become more valuable as it has the capacity and demand to be subdivided upon sale.

The potential downsides of mid-density development

As mentioned previously, more people in an area can put pressure on local infrastructure such as pipes, roads, etc. One of the many considerations councils and local governments consider is how much traffic a new development will generate. Mid-density developments are preferred around areas where there is strong public transport connectivity, alongside everyday facilities such as shops, gyms, and cafes within walking distance, so that people don’t feel the need to use their cars as often. Luckily, the cost of infrastructure to a mid-density dwelling is significantly cheaper (per dwelling/person) than if the properties were detached on larger blocks for example, 18m of road and pipe may be required per dwelling if the properties are on larger blocks with semi-detached houses, meanwhile, a block of land with 6 dwellings only requires 3m of road per dwelling.

The increased tax generation in the area due to a greater population, combined with a decreased cost of public spending per dwelling frees up room in state and local budgets for better public facilities in the area, transport, parks, roads, etc.

Other downsides to medium-density development include the increased considerations when placing more people in a small space. Noise, privacy, garden space, road access, and shared amenities are all elements that need to be considered by the developer and council when making medium-density dwellings; hence they may have a longer approval process.

Section 94 contributions

One of the ways councils and governments combat the increased pressure on local infrastructure is via section 94 contributions. As mentioned, new developments usually require upgraded infrastructure in some capacity. Rather than the tax burden of that being passed on directly to existing residents, developers are required to pay a levy for projects with an estimated development cost of greater than $500,000. This payment will allow for the new services and amenities to be built for the local community.

Quantity Surveyors and Section 94 Reports

To ensure correct and appropriate Section 94 contributions occur for any new projects, it’s important to liaise with a quantity surveyor and organise a section 94 report. At Section 94, our team of highly qualified quantity surveyors can help organise all the required and recommended quantity surveyor reports for your development.

With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.