Why The Shift From Capital Investment Value (CIV)?
Before March 2024, many parts of the NSW planning system relied on Capital Investment Value (CIV) an older metric that captured the value of a development project upon completion, including construction and other financial inputs. CIV was often used to:
- Categorise the scale of a project (e.g., local vs state significant).
- Calculate DA assessment fees.
- Determine planning pathways and thresholds.
The EDC reforms replaced CIV with a single methodological definition across the entire planning system. By focusing on the physically measurable cost to carry out work, EDC reduces ambiguity and increases transparency for both applicants and regulators.
Why EDC Matters in Development Approvals?
The introduction of EDC affects several key areas of the planning process:
- Approval Pathways
EDC is used to determine whether a development should be treated as:
- State Significant Development (SSD)
- State Significant Infrastructure (SSI)
This ensures projects of higher complexity and cost are assessed at the appropriate level.
- Development Application (DA) Fees
DA assessment fees in NSW are linked to the value estimated in EDC and councils now rely on EDC reports to calculate fees and resource allocation for assessments.
- Reporting Requirements
For developments with an EDC above $3 million, a detailed EDC report must be prepared by a qualified quantity surveyor and submitted with the DA. This report must:
- Follow the relevant AIQS Practice Standard.
- Include a detailed cost breakdown supporting the EDC figure.
For smaller DAs under $3 million, councils may require a cost estimate report prepared by a suitably qualified person
What This Means For Architects and QS Practitioners
If you are preparing or advising on a NSW development:
- Use the EDC definition in your DA documentation as required by the updated Environmental Planning & Assessment Regulation 2021.
- Ensure cost breakdowns are clear and aligned with the scope of works, excluding land and operational costs.
- For projects over $3 million, work with an AIQS or RICS quantity surveyor to prepare compliant EDC reports.
- Understand that EDC is now the basis for planning pathway decisions, replacing the old CIV approach with a more consistent and transparent cost measure.