The NSW Government has announced a new way to estimate development costs, which will enhance transparency and accuracy.
The Australian Institute of Quantity Surveyors (AIQS) has been front and centre in developing the new system, which will see any public project valued over $3 million to be accompanied by an estimated development cost report written by a certified quantity surveyor.
“We worked closely with NSW Planning to ensure that this process of estimating the development cost is enhanced to improve transparency and accuracy,” says AIQS CEO, Grant Warner.
“The outcome is the AIQS Practice Standard: Construction Cost Assessments for NSW Estimated Development Cost Reports.”
The new process is a direct reaction to ICAC’s Operation Dasha Report, which recommended changes to improve transparency and reduce corruption risks.
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 read here.
