Benchmark Infrastructure Costings

About the Benchmark costings

The Victorian Parliament passed The Planning and Environment Amendment (Public Land Contributions) Act 2018 (the Act), which introduces a suite of changes to the Infrastructure Contributions Plan (ICP) system effective from 2 July 2018.  The new system creates a more streamlined approach to providing public land contributions and provides more certainty to landowners and councils about the provision of land for basic and essential infrastructure.

A key change of the Act is that it requires land for public purposes to be provided as part of an infrastructure contribution when land is developed, replacing the previous monetary based system. This change enables land for community infrastructure to be acquired earlier in the planning process, reducing the risk of escalating infrastructure costs due to increasing land values.

With a greater proportion of supplementary levies occurring under the new land contribution model, streamlining of construction costs is required to ensure efficiency. Draft benchmark cost estimates have been prepared for a range of basic and essential local infrastructure items generally provided for in Precinct Structure Plans and funded through Infrastructure Contributions Plans.

The draft benchmark costs use baseline cost data from a range of common construction projects estimates to determine with a sufficient level of confidence the probability of a project’s costs being met and establish standard cost sheets and designs for standard transport and community and recreation ICP items.  The benchmark costs will be applied to appropriate projects to determine the costs to be used in the levy calculation.

The VPA have commissioned Cardno to provide draft baseline infrastructure cost data to standardise the cost estimation of ICP projects.

Consultation

The VPA are currently consulting with growth area councils, interface councils and the development industry to refine the draft benchmark costs with the intent of finalising them in November 2018.

Supporting Information

Review of Benchmark Infrastructure Costings report (Cardno) – July 2018
Frequently Asked Questions (VPA) – July 2018
Industry consultation presentation (VPA) – July 2018
Review of Benchmark Infrastructure Costings presentation (Cardno) – July 2018

Consultation

The VPA are currently consulting with growth area councils, interface councils and the development industry to refine the benchmark costs with the intent of finalising them in November 2018.

Contact

Mark Knudsen, Director Infrastructure
(03) 9651 9621
mark.knudsen@vpa.vic.gov.au

Chris Braddock, Water and Engineering Manager
(03) 9651 9647
chris.braddock@vpa.vic.gov.au

Ben Hawkins, Strategic Planning Manager
(03) 9651 9694
ben.hawkins@vpa.vic.gov.au