Section 94 Estimated Development Cost Report 

Most NSW councils require a Section 94 Estimated Development Cost Report (also referred to as a Council Cost Report) when a proposed development’s estimated construction cost exceeds approximately $500,000. This report must be prepared by a registered quantity surveyor to support your Development Application and help calculate infrastructure contributions (Section 94/7.11/7.12)

Developments classified as state significant typically have much higher cost thresholds and must include an Estimated Development Cost Report in the standard form set by the NSW Department of Planning. These detailed QS reports help councils and state authorities determine appropriate development levies and planning pathways.

Even if the construction cost is below general thresholds, some councils may require an EDC Report if the development could significantly impact local infrastructure (roads, drainage, parks, utilities). This becomes a requirement if the local Development Contributions Plan or council policy triggers it to determine the correct Section 94 levy. Always check with the consent authority early in your planning process.

From 4 March 2024, NSW planning reforms introduced a single standard definition for Estimated Development Cost (EDC) to replace terms like capital investment value and cost of development. The reforms mean that for any DA requiring cost reporting — especially those with higher construction values — you must now use the new EDC methodology. Many councils now require EDC Reports prepared to the new standard, particularly for developments over $3 million, to ensure consistency and transparency across applications.

If the CDC will result in a development that triggers a contributions requirement under a council’s Section 94 or 7.11 plan (for example, due to size or type), you will need to provide an EDC report as part of the application. Councils use the report to calculate any applicable levies before issuing the CDC.

A Section 94 Estimated Development Cost Report, sometimes referred to as a Council Cost Report, is a formal document that outlines the total estimated cost of a proposed development. It is used by NSW councils to calculate development contributions under Section 94 (now Sections 7.11 and 7.12) of the Environmental Planning and Assessment Act 1979.

Councils use the EDC Report to ensure infrastructure contributions are calculated accurately and consistently. These contributions fund public infrastructure such as roads, parks, drainage, community facilities and other services required to support new development within the local area.

An EDC Report is generally required when:

• The estimated construction cost of a development exceeds $500,000, or

• The development is classified as state or regionally significant, or

• The local council specifically requests a verified cost report to assess infrastructure contributions.

Thresholds and requirements can vary between councils, so early confirmation is recommended.

For larger developments, councils typically require the report to be prepared by a registered Quantity Surveyor. For smaller projects, some councils may accept reports prepared by suitably qualified builders or design professionals, provided they meet council requirements and use the standard EDC format.

An EDC Report usually includes:

• Site preparation and demolition costs

• Building and construction costs

• Services and external works

• Professional fees

• Contingencies and preliminaries

Land value, financing costs, GST, marketing expenses and developer profit are generally excluded.

The report itself does not increase your construction costs, but it determines the development contribution payable to council. An accurate and independently prepared EDC Report helps ensure you are not over- or under-charged for Section 94 levies.

It can be. If renovations or alterations push the total development cost above the council’s threshold, or significantly increase demand on local infrastructure, a Section 94 EDC Report may still be required as part of the Development Application.

A construction estimate focuses on build costs for budgeting purposes. An Estimated Development Cost is a regulated figure defined under NSW planning legislation and must follow specific inclusion and exclusion rules so councils can apply development contributions consistently.

Yes. If a required EDC Report is missing or does not meet council standards, the Development Application may be delayed, deemed incomplete or refused until compliant documentation is provided.

Ideally, a Quantity Surveyor should be engaged once preliminary plans are sufficiently developed but before lodging the Development Application. Early engagement helps avoid delays, incorrect levies and requests for further information from council.