The NSW Government has introduced a new, simpler and more transparent way to estimate development cost (EDC).
The NSW Government has introduced a new method to estimate the cost of developments for Council Applications with an Estimated Development Cost (EDC) over $3 million to be accompanied by an EDC report prepared by a Certified Quantity Surveyor (CQS).
AIQS CEO Grant Warner explains “We worked closely with NSW Planning to ensure that this process of estimating the development cost is enhanced to improve transparency and accuracy. The outcome is the AIQS Practice Standard: Construction Cost Assessments for NSW Estimated Development Cost Reports.”
The new process was created in response to the Independent Commission Against Corruption’s Operation Dasha Report, which recommended changes to improve transparency and to reduce the risk of corruption.
“Utilising the services of a Certified Quantity Surveyor (CQS) is imperative for optimising outcomes and minimising risk on construction projects.” says Grant Warner.
A spokesperson for NSW Planning stated, “The Independent Commission Against Corruption (ICAC), found that existing methods for determining fees and planning pathways were vulnerable to manipulation. This was because calculating the cost of a development using capital investment value and cost of development is a complicated task, with many variables. The complexity created inconsistencies and made it hard to verify results.”
“The department determined that a single cost definition would reduce opportunities for manipulation. This gives us a simple, verifiable method to calculate development cost for all purposes.”
The AIQS Practice Standard for Construction Cost Assessments for NSW Estimated Development Costs can be downloaded at: https://www.aiqs.com.au/sites/default/files/uploaded-content/website-content/aiqs_edc_practice_standard_2024.pdf