What are Authority Costs?

This is a huge topic to discuss and covering it in details in one blog will be a challenge.  However, I will provide enough information here for you; so when you sit with any builder – you will sound like an expert.  So what are Authority or Statutory Costs?

Definition

Your local or state authority (government) will have some regulations or conditions that your builder will need to follow / implement when building your home.  Examples include, but not limited to:

Work Health and Safety, temporary security fencing, sediment management systems, etc…  So essentially what the authorities are saying is this:  if you want to build this house, here is a list of items that you need to comply with.  This will cost you money.

These are called Authority or Statutory Costs.  

Examples

All Weather Access

This is a roadway for the purposes of construction access and it’s required to comply with authority requirements.  Your tender should show this item upfront.  If the builder does not include and attempts to include it later, you will be for some extra charges unfairly in my view.  This is because this item is not an optional item, so not including it is flat out deceit.

Temporary Security Fencing

This is essentially the fence around your property that your builder temporarily erects throughout your build.  It’s a WHS requirement.

Garbage Disposal

You will need this to comply with the site waste management plan as required

Building Sustainability Index (BASIX)

This is essentially a certificate that shows the commitments made in relation to energy, water and thermal requirements for the proposed development and conforms the Government Sustainability Requirements.  Click here for more info…

Filter Sock

To manage silt and placed in the street gutter at the downstream side of the site – it’s like a sock that sits around the downstream side of the property to prevent contaminated material from going into the street drainages

Mesh Dust Cloth

This is commonly required in Knock-Down-Rebuild areas.  They will install it to the site fence for WHS and Work Cover requirements to protect your neighboring properties

Scaffold

This is a temporary structure to support access and create safe working platforms so workers can have a safe and a stable work platform.  This is a WHS and Work Cover requirement

Final Identification Survey

In order to obtain an occupation certificate for your new home, you will require to obtain a final ident survey.   A registered surveyor will do this to correctly identify which property a given title deed is referring to…

Landscape Plans

These might be required by your local council and might need to be developed by an architect.  It’s not always a requirement for it to be done by an architect and a draftie might be able to create one that the authorities would be satisfied with.

Sediment Control

This is to prevent sand, soil, cement and other building materials from reaching waterways which in turn can have significant impact on the environment and / or stormwater pipes

Sewer Identification

An Accredited Sydney Water Services Coordinator will need to determine the the exact location of the sewer main and the potential impact from erecting the new dwelling.

Items may include:  asset protection report (aka Sewer Pegout), obtaining Sydney water approvals, preparing and lodging documentations with Sydney Water Services Coordinator, inspections, certification of works, etc…

Nationwide House Energy Rating Scheme (Nathers)

This a star rating system (out of 10) that rates your new house’s energy efficiency based on your design.  Click here for more details…

A Note

Please note that these are just some of the Authority and Statutory costs you may expect to see on your tender.  Now some of these items might not be classified under the  “Authority or Statutory Costs” section.

For example, you might find some of these costs under a “BASIX Costs” section which may include all related BASIX costs.  Another builder may classify Sediment Control as a site cost rather than an authority cost.

So then the Authority or Statutory Costs for one builder may potentially look “cheaper” than the next builder who would include all the above costs under the one Authority or Statutory Costs section.  This does not mean that this builder is providing with a cheaper price.  Remember, you pay the final price that adds up ALL the costs.  

The real question is:  what should be included?  What shouldn’t?  AND how do you compare costs?