Congratulations! You have now successfully progressed through Step 4, the planning permit application process, leaving you with a development site that includes a Planning Permit with associated Plans.
The goal of this step, Step 5: Detail, is to progress your documentation to a level that your project can be Tendered, a Builder selected and a Building Permit issued.
This article will outline the following steps in the process to securing your building permit:
- Address Town Planning conditions
- Commission Working Drawings
- Compile Building/Construction Specifications
- Put project out to Tender
- Arrange Construction Finance
Property Development Step 5: Detail
After the significant work, stakeholder buy-in and time required of the previous Step, Step 5:Detail can typically progress more rapidly as most elements are within your architect’s sphere of control.
It is worth noting that much like the previous steps, this step is iterative – progress with certain elements will reveal consequences with other elements. As always, it is to your advantage to have as many contributors and stakeholders in the same room at the same time.
1. Address Town Planning conditions
Even though your site has been granted a Planning Permit, it will inevitably have conditions attached.
These conditions *must* be met in order for your Planning Permit and Plans to be Endorsed / Approved / Stamped by your council.
Every condition on the Planning Permit needs to be addressed to the satisfaction of your local council planner (or Tribunal, where relevant). Undoubtedly some conditions will be simple to address, while others may require clarification and negotiation. Be prepared to ‘give and take’.
Your architect will need to alter your plans and documentation to address the permit conditions and submit these as your final Town Planning Permit amendment. You will also need to pay any levies (eg. Development Contributions, Public Open Space, etc) and/or council fees as part of the conditions of your permit.
If all conditions have been satisfactorily addressed, you should obtain your Endorsed / Approved / Stamped Planning Permit and Plans.
2. Commission Working drawings
Now that you have an endorsed planning permit with plans, you can commission your architect to detail your drawings up to Building Code of Australia (BCA) standards.
Drawings with this level of detail are often referred to as Working Drawings or Construction Drawings and are the drawings that will be used by your future builder.
During this process, your architect will engage as many specialist contractors as your project requires. For example:
- Geotechnical (soil) Engineers.
- Heating, Ventilation and Air Conditioning (HVAC) consultants
- Traffic Planners
- Structural Engineers
- Fire Safety Consultants
- Landscape Architects
- Environmental Consultants
- Civil & Road Engineers, etc
3. Compile Building/Construction Permit Documents
Going hand in hand with the detailed architectural working drawings is a detailed building Specification.
The Specification builds upon the Materials Schedule that was developed in the previous step but details the exact finishes, fixtures and fittings required.
The combination of the Working Drawings and the Specifications is your opportunity to be as specific as you would like to directly affect the level of finish (and thus cost) of your project.
For example, here you can specify the exact tapware you would like or you can provide a ‘tapware provision’ for your architect to specify. Either way, there will be consequences – if you specify an exact brand and model of tapware, you may get what you want but it may come at a cost (in the form of price and/or time). Alternatively if you leave a provision, the decision may not be exactly what you were after, but can result in price/time savings due to your architect’s supplier relationships.
Be aware that changes to the Specifications can often lead to changes to the Working Drawings and vice versa.
Some architects use Specification Packages that are available, such as NatSpec, to assist in writing the Specifications.
Once you have a revision of Working Drawings and Specifications that you are satisfied with, have a Building Estimator (ideally with recent estimation experience of similar projects in similar locations) provide a cost estimation.
No doubt, the first cost estimation draft will highlight cost areas of concern and opportunity.
Here your drawings and specifications can also be submitted to an accredited Energy Rater – at the time of writing, all homes in Victoria must comply with a 5 star energy rating. Once again, you may find further areas of concern or opportunity for both cost and environmental sustainability factors.
Continue working with your Architect (and other relevant consultants) to arrive at a final revision of architectural Working Drawings and Specifications that all parties are satisfied with.
4. Put project out to Tender
You architect can now assemble all the documentation you have into a Building Permit Documentation Package.
Different states and councils have different Building Permit Requirements however your documentation package should contain at least:
- Copy of Title
- Working Drawings
- Specifications Document
- 5 Star Energy Rating
- Stamped Planning Permit and Plans
Your architect can send out an Invitation to Tender with your Building Permit Documentation Package to a select few builders.
Discuss the Tender Offers you receive with your architect then negotiate a Building Contract with the builder that you are most satisfied with.
There are several different forms of Building Contract, so you should always seek legal advice before signing.
Your builder of choice can then use your building permit documentation package to apply for a Building Permit.
5. Arrange Construction Finance
If you haven’t already, now is the time to arrange your Construction Finance.
For developments, your financier will typically arrange for a “Valuation as if Complete” from their panel valuer.
As the name suggests, this will determine the end value (in the valuer’s eyes) of your project and thus impact the amount that you will be able to borrow for your development.
Supply your bank’s panel valuer with a building permit documentation package as well as some recent valuation support documentation (depending on how much your project has changed, it may be worthwhile revisiting Step 2: Strategy). The more detail you provide, the less they’ll need to estimate or ‘allow for’ so provide as much detail as you can in your documentation so that the valuer doesn’t need to make assumptions.
Conclusion
Step 5: Detail, progresses your documentation to a level that your project can be Tendered, a Builder selected and a Building Permit issued. This involves the following elements:
- Address Town Planning conditions
- Commission Working Drawings
- Compile Building/Construction Specifications
- Put project out to Tender
- Arrange Construction Finance
We will investigate in the next article, Step 6: Build, how to turn your ink on paper into bricks and mortar!
Related links:
- Building Code of Australia (BCA) – About the BCA
- Building Commission of Victoria – Building Permits
- NatSpec
- Sustainability Victoria – 5 Star Homes
- ResourceSmart – Accredited Energy Raters
