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1. Capital works planning

There are three cost planning services sought from the quantity surveyor including capital, business case, value management and recurrent cost plans. The quantity surveyor is to be familiar with all planning and development guidelines in terms of impact on capital and recurrent costs.

To facilitate project control and ensure maximum benefits from capital investment, quantity surveyors preparing cost plans will provide the following data for each stage:

  • The cost plans are prepared generally in accordance with the Australian Institute of Quantity Surveyors (AIQS) or Department of Health and Human Services templates (see the cost plans estimates pro formas). The detailed elemental sheets, where definitive drawings are available, should also be completed. All items under the respective elements should be clearly identified with corresponding rates and quantities shown. Elemental rates and quantities must also be calculated.
  • Bill of quantities where appropriate is prepared by the quantity surveyor.
  • Cost data shall be prepared on a functional area of similar basis for all new building works (refer to the sample list of functional groups for acute hospitals).
  • The rate ($/m2) used for each function shall take account of variations in cost for:
    • structure
    • fit-out
    • service installations.

The unit rate shall generally cover all work defined in the AIQS manual. In some cases it may be necessary to isolate one or more elements, rather than include them in an overall unit rate. Where such action has been taken, it should be clearly highlighted.

Separate budgets shall be prepared and summarised for:

  • all specialist items (for example hospital medical equipment)
  • civil and site work
  • infrastructure alterations including alterations and connections to existing structures
  • ESD.

Cost plans will include calculation of:

  • professional fees
  • cost escalation
  • contingencies and prolongation for the design and construction components.
  • allowances made where hazardous material (e.g. asbestos) removal is required and to cover removal associated with or prior to any demolition of existing structures and for alterations and connections to existing structures
  • any special circumstances included should be identified and justified.

Business plan preparation

A business case is required for all capital projects. For projects in excess of $5 million, a more detailed assessment of capital and recurrent costs will be undertaken in conjunction with cost planning. The financial components of the business case study will be prepared by the quantity surveyor in accordance with guidelines (refer to the Department of Treasury and Finance gateway business case requirements here.


Value management, gateway reviews and post occupancy evaluation’s require a quantity surveyor to provide briefing data and information for reviews and to participate in their process and outcomes.

Recurrent cost planning

The role of the quantity surveyor will be to identify recurrent operating costs for asset operating and maintenance for the design life of the asset. The quantity surveyor will collect and coordinate information from others (e.g. engineers, service providers). The non-service delivery costs should include energy, asset operation and management, cleaning and security as well as major upgrades or replacement costs for the project over the design life cycle. These recurrent cost estimates, developed for business cases used to support project-funding applications will be used as a baseline for the project evaluation through all stages of design.

Independent advice

Quantity surveyor is to provide independent advice, frank and fearless to the Department of Health and Human Services, when required. Financial auditing and advice on any cost, fees or estimates associated with the project may also be required.