Understanding Council Cost Summary Report

May 29, 2024

Understanding Council Cost Summary Report

What is the Purpose of a Cost Summary Report?

A Council Cost Summary Report is a crucial document that presents cost estimates linked to a development project. It serves as a tool for local councils to evaluate the project’s financial feasibility and decide on the necessary development contributions. This report outlines the anticipated expenses associated with the proposed project’s construction.

When Do You Need a Cost Summary Report?

If you’re planning a development in Sydney, NSW, you’ll need to create a Council Cost Summary Report. This report may be required when submitting your Development Application (DA).

  • For projects with costs ranging from $0 to $150,000: The report can be prepared by applicants or suitably qualified individuals.
  • For costs between $150,000 and $3 million: The report must be prepared by a suitably qualified person, such as a quantity surveyor, licensed builder, registered land surveyor, architect, or accredited building estimator.
  • For projects exceeding $3 million: A certified quantity surveyor must provide a detailed cost report for verification.
  • For development costs exceeding $40 million: It becomes crucial to provide an accurate estimate during the development application stage. For costs over $50 million, the Central Sydney Planning Committee acts as the consent authority.

What Information is Included in Council Cost Summary Reports?

A Council Cost Summary Report typically includes the following information:

  • Type of development: Residential, commercial, or industrial property development.
  • Size of the development: Total area, sizes of individual units, and square footage of the building.
  • Estimated construction costs: Material, labor, site demolition, or site preparation costs.
  • Estimated soft costs: Planning and legal fees.
  • Estimated profit margin: Expected profit from the project.

The specific information included will vary depending on the type of development and the requirements of the council.

How to Submit the Report?

Submitting the Council Cost Summary Report usually involves the following steps:

  1. Check the council’s website: Familiarize yourself with the specific requirements of your local council.
  2. Complete the form: Use the standardized template provided by the local council.
  3. Attach supporting documentation: Submit all supporting documents, such as the DA or builders’ quotes.
  4. Submit the report to the council: Follow the submission process outlined by your local council.
  5. Await the council’s review: The council will review the report and decide on the approval of your project.
Sources of Information Used in the Report

The information in a Council Cost Summary Report can come from various sources:

  • Applicant’s own estimates: These may not be entirely accurate.
  • Industry standard costs: Useful but must be specific to your project.
  • Advice of a quantity surveyor: Quantity surveyors provide the most reliable and accurate cost estimates.

How Long Does it Take to Complete?

The time required to complete a Council Cost Summary Report varies based on the project’s size, complexity, and the experience of the individuals preparing the report. When handled by a registered quantity surveyor, expect completion within a few days to a few weeks.

Who Can Prepare the Cost Summary Report?

If your development costs exceed the limit specified by the local council, a registered Quantity Surveyor, who is a member of the Australian Institute of Quantity Surveyors (AIQS), must prepare the report. For development costs below $150,000, applicants can prepare the reports themselves.

How Cost Logic Can Help You

With over 05 years of QS experience, Cost Logic can assist you with various documents required by the NSW council, including Council Cost Summary Reports for your development application.

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