We’ve just spent $17,000 on our renovations and we haven’t even laid a brick yet.

Let’s put mortgages aside for a bit. As I mentioned previously, we are renovating our house, however the actual building work only just started last week. It has taken eight months to get plans and council approval, a lot longer and more expensive than I anticipated. Saying that, I really had no idea having never been through this process before, hence why I would like to share my experience with you so that you are somewhat informed when undertaking the same.

The renovation consists of a small rear extension including a deck, redoing the downstairs bathroom and laundry, repainting inside and out, and installing new flooring and lighting downstairs. The property is in the City of Sydney council in NSW, Australia. I shopped around where I could on prices so this is probably the low end of the scale, I am sure for bigger jobs the architects fees alone could be in the tens of thousands!

Preparing the plans

The first meeting with my architect was 15 November 2013 and we started with discussing my requirements. My architect then started drawing up the plans. In order to do these properly we needed a structural engineer to advise on the extension (structural beams where walls are being removed, concrete slab footings etc) and a civil engineer to advise on relocation of services (water, sewerage etc pipes around where the extension will be). In addition, to be able to draw up the plans accurately we needed a property surveyor to provide measurements of the property and boundaries. Just to get the plans drawn ready for council submission it cost: architect $2,000, engineer $3,000, and surveyor $1,700. Lets now refer to the completed plans as the Development Application (DA).

There is another type of application called a Complying Development Certificate (CDC), which we were hoping to go for as it is a simpler process, however our house is in a Heritage Conservation area so requires a more detailed application.

Then we had to pay a few miscellaneous fees and charges that don’t add up to much however I have explained these briefly:

• Form 149: provides information about zoning, subdivisions, and easements. This cost $80
• BASIX certificate: required for DA’s in NSW for projects greater than $50k, which assesses the sustainability of the project with regards to water consumption, greenhouse gas emissions and thermal performance. This cost $25
• Building Plan Approval application fee: I have no idea what this is but it cost $17.01

Then came the confusing part of using a private certifier. I thought we were just drawing up some plans, sending them to council and waiting what seems a lifetime for approval… However before we can make submission the DA is assessed to ensure it meets town planning and environmental requirements. Actually you can get council to do this instead but I was assured by my architect that where a certifier can do the job they are both quicker and cheaper. I like that! The certifier charged $3,300 and took one to two weeks. The report also referred to the Heritage Conservation requirements for the area, for e.g. with regards to the appearance of the extension, even down to the exterior paint colours we were using.

Submitting the Development Application

Now we were ready to submit our DA! After going to the town hall office with my architect and the council town planner requesting more (seemingly unnecessary) information, we finally made our submission and paid more money. The DA is for small scale residential projects such as alterations, additions and carports. The application fee is calculated in two parts: 1. The cost of the project, which for a 50-250k project is calculated by a base of $352 plus $3.64 for every $1k over $50k, and 2. An advertising/notification fee of $535. All up we paid $1,240. We submitted the DA on 17 March 2014, five months after I first met with my architect.

Then the waiting starts… the council has to notify all residents in the area of the DA, advertise the DA on the property, and provide the means for which residents can inquire or complain about the DA for a period of four weeks. After this the council planner will then review the application. This took another three to four weeks and some phone calls from my architect and myself to chase the process along. And you hope your DA comes back approved otherwise this takes even longer!

During this period my architect worked on the construction documents, which provide a greater level of detail to the DA plans, which the builder uses. An example is where ceiling lights will be placed, which lights will be on the same switch and where that switch will be located. These documents are optional but I saw three major benefits: 1. It forces you as the client to nut out all of your requirements up front. You don’t necessarily have to pick the exact location and number of ceiling lights at this stage, but it is pretty close, 2. It provides a good level of detail for builders to provide accurate quotes, and 3. It is a record of your requirements that is set at the start of the job so any disputes with the builder should be easily resolved. Of course this costs more money, but money well spent I believe. I paid the architect a further $1,700 for the construction documentation including managing the builder tender process.

We received council approval 9 May 2014, almost eight weeks after submission. The DA was returned with some pretty standard additional requirements, including dilapidation reports on the properties either side. The report documents the condition of the properties, i.e. cracks in the walls etc, which the council/certifier uses to understand if any of our work will affect the structural integrity of the bordering properties. This cost a further $1,100 from the structural engineer.

Tendering for a builder

My architect then submitted the construction documents to a number of builders for the tender process, requiring quotes within four weeks. We waited for the DA approval to do this in case any major changes were required to our plans. After receiving a number of quotes my architect reviewed and analysed these in order to select the best builder for the job. We met with the builder to discuss the project details and price and then signed the contract on 27 June 2014.

Getting the Construction Certificate

Right, so now we’re ready to go! Or not, it seems. More waiting and money required still. We then needed a Construction Certificate, which is used to verify before beginning the project that the work complies with the Building Code Australia, the design and construction work is consistent with the DA, assesses any conditions in the DA, and checks all fees have been paid and insurances obtained. This was completed by a private certifier (although can be done by council too) and cost a further $1,100 plus $1,320 for critical stage inspections throughout the project.

In order for the certificate to be given my builder had to apply for specific project insurance. There was a backlog of applications, so this took a bit longer than expected. And I had to pay one final fee – the Long Service Levy (LSL) of $516.06. When I researched what this was I nearly fell of my chair! I’m sure many a builder will argue with me but this sounds like some sort of legacy union hooey. The LSL is charged on projects >$25k, calculated by 0.35% of the value of the project including GST. The money is paid into a fund, which makes long service payments to building and construction workers. Hmmm.

Building work

The builders started on 7 July 2014 with internal demolition work while we were waiting on the Construction Certificate, which has now been received and major demolition can now commence. The builder estimates 13 weeks of work, but we shall see…..