From the cost of living crisis to fuel supply uncertainty to changes to the approval process across New South Wales – the market is volatile but that is exactly why you should be looking to get your project completed NOW rather than later. With uncertainty in the market, the cost of your project may increase rather than decrease if you delay with getting your approval and build underway now.
How has the fuel crisis impacted building?
Supply, delivery and labour are all impacted by the cost of fuel and the volatility of fuel prices in recent months will continue to have an impact on costs of construction. While recent short term policy changes have stabilized fuel prices, this is not guaranteed to be a long term solution. With the ongoing political uncertainty, increases in costing for construction should be expected;
1. Supply
Most kit suppliers account for an expected cost of delivery of raw materials for manufacturing. International shipping costs and domestic delivery are both heavily impacted by the cost and availability of fuel, something which has been volatile for the last 6 weeks. Other components of construction are also subject to price fluctuations – especially materials that are petroleum based. Downpipes, sealants for doors and waterproofing membranes that are often included in steel framed shed construction can increase in price if overall supply is affected. The sooner you can lock in your kit with your manufacturer, the sooner you can get a guarantee on price. Moving now, is just as likely to save you money as waiting for things to “calm down” internationally.
2. Delivery
The supply of your kit to the job site as well as any other materials that need to be delivered including concreting and retaining wall materials are subject to changes in price depending on the cost of fuel during delivery. Future disruptions in the supply chain may also delay delivery dates for materials, which can impact on the start date of a build.
3. Labour
Trades need to get to your site too, and fluctuations in fuel costs will invariably affect the ability for your trades to get to site to get your building completed. Quotes you obtain now are likely to change if you delay on getting an approval and starting construction! In a roundabout way, getting your project underway during this uncertainty will possibly save you money in the long run.
What about the approval?
Each new financial year councils release an updated fee schedule for applications and, where applicable, a new DA checklist which determines what you need to have your application assessed and approved. It is always best to get your application lodged BEFORE planning changes take effect to make sure you don’t incur additional costs that you would not have needed to in the previous financial year! A DA approval lasts for 5 years from the date of approval from council, so you will have plenty of time to line up trades and arrange finance if needed.
1. What additional items may be requested?
The honest answer – it depends! Minister Scully has alluded to wide scale changes in the assessment and approval process to speed up assessments in councils and increase the overall number of approvals issues in NSW however this may increase the burden placed on the applicant to provide more information. There may also be a reduction in the number of documents requested compared to previous years. Until the changes are announced, there is no way to be certain. What is for certain however is that getting your approval arranged BEFORE these changes take place will avoid this question altogether for a smoother approval process.
2. Changes in fee schedules
Most councils work on a cost of development calculation when determining your DA fees. This means that as building costs rise, so too will your application fees. Most councils also increase their fees year on year so getting in before new costs take effect is strongly recommended.
So what can I ACTUALLY build on my property?
With all this uncertainty for the future it’s best to apply for a compliant building that can be approved QUICKLY. This is one of the reasons PlanDAT was developed – to get you on the right path as early as possible.
The PlanDAT guidelines provide you with a host of options that indicate what the approving authority applicable to your site will allow to be approved on your site.
PlanDAT tells you what your boundary offsets need to be, what your maximum height is allowed to be and most importantly what the maximum size (Roof area m2) is for your zone and property size. It tells you if CDC is possible on your site and what the requirements are if it is possible.
This is a really handy tool however PlanDAT is a paid report, it costs $49.95 per report and still does need to be confirmed by a certifier before an approval can be issued. It does get emailed back to you within seconds which is really helpful if your in a rush to make a decision. Check your address below:
