Renovating your home is an exciting but often costly venture, especially in Sydney, where local council requirements and site-specific challenges can add up quickly. While most homeowners budget for the obvious expenses like the actual build and design fees, there are numerous hidden costs that can catch you by surprise during the renovation process. Being aware of these less obvious expenses can help you plan more accurately and avoid nasty surprises down the track.
In this post, we’ll break down some of the hidden costs associated with renovating in Sydney, from council fees and consultant reports to construction certificates and the long service levy.
Council Application Fees
When submitting a Development Application (DA) or a Complying Development Certificate (CDC), there are various fees associated with the application process. These fees vary depending on the scale of the project and the specific council you’re dealing with, but they are often overlooked in initial budgets.
- For DAs: You’ll need to account for the cost of submitting the application, public notifications, and any additional review processes required by the council.
- For CDCs: While the process is often faster, you still need to pay the certifier for the assessment and approval.
Construction Certificate (Required for DAs)
After receiving DA approval, you’ll need a Construction Certificate (CC) before work can begin. This certificate ensures your construction plans comply with the Building Code of Australia (BCA). The cost of obtaining this certificate includes assessments by the council or a private certifier and is a separate expense from the DA submission itself.
Consultant Fees
Depending on your project’s complexity, you may need to engage various consultants to provide supporting reports and documentation. Common consultants and associated fees include:
- Structural Engineer: Required for projects involving significant structural changes.
- Surveyor: Needed for detail and contour surveys, an essential step that allows detailed drawings to be created.
- BASIX Certificate: Essential for ensuring your project meets energy, water, and thermal comfort requirements.
- Hydraulic or Geotechnical Engineer: If your project is on a flood-prone or sloping site, additional reports may be necessary.
Heritage Consultant Reports
If your property is located within a heritage conservation area or is heritage-listed, you’ll likely need a heritage consultant to review and prepare reports for council approval. This is a significant hidden cost, especially if your renovation needs to align with strict heritage guidelines that require extra design considerations.
Tree Removal or Preservation Costs
Sydney councils place a high priority on tree preservation, and any renovation or extension that involves the removal or significant trimming of trees may require council approval. Tree removal can be a substantial cost, particularly if the tree is heritage-listed or protected under council regulations. Even work near a tree, in the root zone can trigger the need for an arborist report.
Unexpected Site Conditions
It’s not uncommon for renovators to encounter unexpected site conditions during construction, which can lead to additional costs. For example, the discovery of asbestos or contaminated soil may require specialist removal and disposal services, which can quickly escalate the overall budget. Similarly, unstable ground might necessitate further geotechnical assessments and foundation work. While all efforts are made in the design process to identify these possible issues, it is unfortunately the nature of older buildings to reveal surprises when you begin peeling back the layers.
RFI (Request for Information) Reassessment Fees from Council
During the DA process, councils may request additional information or modifications to your proposal, known as a Request for Information (RFI). If this happens, you may need to pay reassessment fees to the council, especially if the changes are substantial.
Long Service Levy Payment
The Long Service Levy is a lesser-known cost that applies to all NSW building and construction projects valued at $250,000 or more (including GST). The levy rate is 0.25% of the total project cost, and it must be paid before building work can commence.
- This levy is collected by the Long Service Corporation (LSC) to fund long service entitlements for eligible building and construction workers.
- The levy is usually paid by the applicant of the building approval or the person for whom the work is being done.
- Owner-builders and non-profit organisations may be eligible for up to a 50% exemption.
Builder’s Variations
Even the best-laid renovation plans can change during construction, and when they do, you may face builder’s variations—unexpected costs due to alterations, additional work, or unforeseen challenges that arise once the project is underway. These variations can be costly, so it’s always a good idea to budget for a contingency to handle these surprises.
Utility Connection and Upgrade Fees
Renovations that involve major changes to the layout or additions to your home may require new or upgraded connections to utilities like water, electricity, and gas. For example, adding new rooms or expanding your kitchen may require an upgrade to your electricity supply, which can involve extra fees and contractor costs.
Temporary Accommodation
If your renovation is extensive and makes your home uninhabitable for a time, you’ll need to consider the cost of temporary accommodation. Whether you’re renting a place or staying with family, this is an added cost that can last longer than expected if construction timelines are extended.
Design Revisions
Most designers and architects include a set number of design revisions in their initial fees, but if you make changes to the design beyond what’s agreed upon, you’ll likely face extra charges. It’s important to be clear about what’s included in your design contract and to account for potential additional costs if you’re prone to changing your mind. Having a clear idea of what you want from the project at the start can help smooth this process along.
Neighbour Consultation (if required)
In some cases, particularly with DA approvals, neighbour consultation may be required. Some council's include this in their DA assessment fees, while some charge it as an additional fee. This process may require additional adjustments to your plans if neighbours raise concerns, such as privacy issues or overshadowing.
Increased Construction Material Costs
The cost of materials can fluctuate, particularly during times of economic uncertainty or supply chain disruptions. If your renovation spans several months, you may encounter price increases on materials like timber, steel, or concrete, which can impact your overall budget. Read through any builder’s contracts thoroughly to understand if prices are fixed or can fluctuate for your project.
Landscaping and External Works
Many homeowners focus on the internal renovations but forget to budget for the external works. Completing a renovation often requires additional work to driveways, fencing, or landscaping, which may not have been included in the initial scope of the build.
Conclusion
While it’s exciting to plan a renovation, it’s essential to factor in all potential costs—both the obvious and the hidden. By considering the above expenses in your budget, you’ll be better prepared for the financial reality of your project and avoid any last-minute surprises.
At Banksia Building Design, we help our clients plan for all aspects of their renovation, from design and council approvals to the unexpected challenges that may arise. If you’re ready to get started, reach out today for a consultation.
