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Estimated Development Cost (EDC)

With over three decades of experience assessing Estimated Development Costs during the development design phase, our team can minimise your authority’s fee without compromising the integrity of your development.

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 Introducing Estimated Development Cost Reforms

On 4 March 2024, the NSW Department of Planning introduced a major shift in how development costs are calculated for planning purposes. The reforms establised a new unified metric the Estimated Development Cost (EDC) which now underpins planning approval pathways and fee calculations for developments across NSW.

This reform replaces the previous term Capital Investment Value (CIV) and Cost of Development, bringing greater consistency, transparency and fairness to applications for State Significant Developments (SSD) and State Significant Infrastructure (SSI). 

For practitioners preparing DAs, understanding what goes into what stays out of the EDC is crucial. It also matters when comparing it to the old CIV approach, especially for estimating fees and identifying development pathways. 

What is Estimated Development Cost (EDC)?

EDC is defined as the estimated cost of carrying out the proposed development including: 

  • Design and construction of buildings and associated infrastructure,
  • Demolition of existing structures where applicable,
  • Fixed or mobile plant and equipment required for the development.

EDC excludes:

  • Land acquisition costs or land value,
  • GST (Goods and Services Tax) though GST is added back in certain circumstances for fee calculations,
  • Developers contributions or planning agreement costs,
  • Costs of ongoing maintenance or operation of completed project. 

In plain terms, EDC captures the deliverable construction cost rather than broader financial or investment drivers. This makes it more objective and verifiable measure for planning authorities. 

Understanding the New EDC Requirements

The Estimated Development Cost (EDC) report requirements vary depending on the construction cost of the project:

1. Projects below $3 million

  • The report can be prepared by an Affiliate or higher member of the Australian Institute of Quantity Surveyors (AIQS).
  • An element summary is required, following the same format previously used for CIV reporting including completion of the Council form.

2. Above $3 million 

  • The report must be prepared by a registered Quantity Surveyor who is a Member (MAIQS) or holds a higher designation with the Australian Institute of Quantity Surveyors (AIQS).
  • A detailed elemental breakdown including GST must be provided in accordance with the new AIQS guidelines and the Department of Planning, Housing and Infrastructure (DPHI) Planning Circular.

3. State Significant Development (SSD) or State Significant Infrastructure (SSI)

  • Applies to projects above $75 million in Sydney Metro and above $35 million outside Sydney Metro.
  • The report must be prepared by a registered Quantity Surveyor who is both MAIQS and a Certified Quantity Surveyor (CQS) with the Australian Institute of Quantity Surveyor (AIQS).
  • A detailed elemental breakdown excluding GST is required under the AIQS guidelines and the Department of Planning, Housing and Infrastructure (DPHI) Planning Circular.
  • For some SSD and SSI applications (such as those including infill affordable housing for example), employment estimates are also required to assess the workforce generated during both construction and operational phases. 

“I’m Submitting a DA, When Should I Obtain the EDC Report?”

EDC calculations must be carried out within 30 days of DA submission. So essentially, we should be the last consultant engaged as part of the DA process once all other documents and the design are finalised. 

Why Choose Archi-QS?

  • Qualified Professionals: Our team comprises qualified quantity surveyors who have Fellow grade membership with the AIQS and CQS designation, enabling us to carry out EDC reporting on all project types.
  • Tailored Solutions: Each development project is unique, and our approach reflects this. We work closely with clients to understand their specific requirements and deliver customised reports that align with their objectives.
  • Compliance Assurance: With Archi-QS, you can rest assured that your reports will meet all regulatory requirements outlined by the NSW Department of Planning. We meticulously follow guidelines and ensure accuracy and compliance throughout the reporting process. 
  • Streamline Process: We understand the importance of efficiency in the development approval process. Our streamlined approach to reporting minimises delays and ensures timely submission of reports to facilitate smoother project progression.

Get in Touch

Whether you’re a developer, architect, or stakeholder involved in a development project, Archi-QS is here to assist you with your reporting needs. Contact us to learn more about our services and how we can support your project’s success.