Damage to property and buildings

Notwithstanding the substantial number of properties that suffered as a result of the recent floods, the most common building disaster in Australia is fire, so it is important to be prepared. Luckily we have only had one earthquake in recent history and although the chances of these occurrences are low, the devastation they can do has been clearly seen in Christchurch.Napier & Blakeley’s property reinstatement cost assessments determine the amount a property needs to be insured for to cover the possibility of damage or complete destruction from a disaster. This should include the demolition of the remaining component of the property followed by the reconstruction and all associated fees, such as design, management and permit fees.

In conjunction with recent meteorological events construction markets nationally have gone through significant changes in cost in recent years. A number of years ago costs increased significantly and in some markets in more recent times costs have gone backwards. So it is now more important than ever to accurately update insurable costs.

Fire or disaster can have a direct impact on business operations within a building and many building owners do not adequately factor items such as loss of profits or business interruption into the building insurance equation, leaving themselves under insured.

Over insurance can also be detrimental to business performance. Insuring a property for more than its true worth provides no tangible benefit and may increase the building’s outgoings unnecessarily.

Our reports ensure that you are insured for the right amount and the assessments we provide take many factors into account in determining the cost of reinstating property.  Our quantity surveyors are experts in determining the true demolition and reconstruction costs of a property.

Valuers value, architects design and builders build, but none are real cost experts.

A qualified quantity surveyor is the only qualified construction cost professional capable of determining construction costs of buildings.

Related Topic on Napier & Blakeley Blog  
Property Depreciation and Natural Disasters

Contact

If you want further information on Property Reinstatement Cost Assessments, or any other Napier & Blakeley services please contact any of our offices below:

Melbourne - Craig Smith                   
03 9915 6300                           
csmith@napierblakeley.com 

Sydney - Peter Hammond                
02 9299 1899                    
phammond@napierblakeley.com 

Brisbane - Paul Cosker                     
07 3221 8255                           
pcosker@napierblakeley.com

Napier & Blakeley services: 

• Technical Due Diligence
• Capital Expenditure Planning
• Quantity Surveying
• Strategic Asset Management
• Building & Sustainability Consulting
• Property Depreciation

Commercial Building Disclosure (CBD) is a national program designed to improve the energy efficiency of Australia’s large office buildings.

The disclosure requirements under the CBD program will commence on 1 November 2010.

The CBD program will ensure that credible and meaningful energy efficiency information is available to prospective purchasers and lessees of large commercial office space. Owners and lessors of commercial office space with a net lettable area of 2,000m² or more will be required to disclose energy efficiency information to prospective purchasers and tenants when the space is to be sold, leased or subleased.

Transitional Provisions

The legislation contains transitional provisions that will apply for the first twelve months of the program (i.e. from 1 November 2010 to 30 October 2011). During this period, a valid National Australian Built Environment Rating System (NABERS) Energy base or whole building rating, must be disclosed. After the transition period, a full Building Energy Efficiency Certificate (BEEC) is required to be disclosed.

Requirements for a Building Energy Efficiency Certificate

The requirements to disclose a BEEC will commence in the second year of the program (i.e. from 1 November 2011) and will include three components:

1.   a NABERS Energy base building rating
2.   tenancy lighting information
3.   generic energy efficiency guidance.

The BEEC will be valid for up to 12 months. At the time of disclosure, the certificate will need to be valid, current and registered on the publicly accessible registry on the program’s website.

For More Information

A new CBD program website has been established, with links to the Act and subordinate legislation:  www.cbd.gov.au

NABERS Energy Base Building Rating Checklist

The following information is required for a NABERS Energy Base Building rating. This checklist covers the minimum of information needed, but individual ratings may require additional information or documentation depending on the individual circumstances of the premises.

Rated Hours 

• Documentation notifying the building manager of agreed Hours of Service for normal and after-hours operation.
• After-hours air conditioning request logs.
• Any documentation required to verify hours of occupancy over 60 hours a week.
• Permission from any affected third parties to survey staff managers or supervisors responsible for the Functional Spaces in the premises to be rated to determine hours of occupation; and the survey itself, if required.

Energy & Water Usage

• Single-line diagrams, electrical circuit schedules and diagrams to ensure all energy sources are included.
• Evidence of accuracy and validation of high-voltage electricity meters and all other non-utility meters and records of non-utility meters.
• Documentation of any agreements between tenants or between building owner and tenants, to allocate costs or responsibility for consumption (for example for shared facilities or shared supplies).
• Utility billing data covering the full 12 months of the Rating Period for each energy source (e.g. Electricity, gas, diesel) used in the rated premises.
• Bills for deliveries of any discrete (batch) supplies, showing quantities delivered and how they were measured.
• Documentation of any GreenPower purchases, including the allocation of bulk purchases.

Penalties

Failure to disclose may result in civil penalties of up to $110,000 for the first day and $11,000 for each subsequent day may be imposed by a Court for each breach of a disclosure obligation. Alternatively, the Secretary of the Department of Climate Change and Energy Efficiency can issue an infringement notice of up to $11,000 for the first day and $1,100 for each subsequent day of non-compliance.

Further penalties may apply for various breaches of the CBD.  Refer to the website for further information www.cbd.gov.au.

Have you got a CBD action plan ?

Napier & Blakeley are experts in the provision of strategic property advice and can assist in getting your property ready for the demands of this new legislation.

Call Napier & Blakeley today to ensure you are ready for this legislation.

With over 25 year’s industry experience, we can assist you in:

• Sustainable Property Solutions
• Quantity Surveying
• Property Depreciation Allowances
• Green Star & NABERS Ratings
• Due Diligence & Capex Planning
• Insurance Reinstatement Costs
• Project Management

Our strategic, cost effective advice will best position your property for the future.

NSW / ACT / WA / NZ  -  Rod Clarke, Alastair Walker -  02 9299 1899
VIC /  SA  / TAS  -  Peter Frith, Rob Howells -  03 9915 6300