Prepared by Caulfield Krivanek Architecture in conjunction with Rodney Vapp and Associates
This document is intended to be used only as a guide to assist the managers of aged care facilities and retirement living complexes in undertaking basic planning for new facilities and extensions to existing ones. More accurate costs can be provided from concept sketches prepared by CKA Group and financial analyses prepared by quantity surveyors, Rodney Vapp and Associates.
Note: Construction costs have fluctuated significantly over the past 12 months. Government expenditure on major infrastructure projects has placed sustained upward pressure on both material supply and trade availability. This was further exacerbated by supply chain disruptions and fuel shortages linked to the Middle East war, with costs of key materials such as concrete, steel and plastics increasing by 30%. However, these same pressures contributed to a slowdown in the building development sector. As demand softened and fuel prices began to stabilise, material costs have eased and the availability of builders and trades has improved. As a result, construction prices have largely stabilised and are now only slightly higher than they were 12 months ago. Looking ahead, the outlook remains uncertain. Ongoing impacts from the Middle East war may continue to place upward pressure on costs, while potential government changes to capital gains tax and negative gearing may have a downward effect. The combined result of these factors is difficult to assess.
Asset Replacement Cost
Deloraine Aged Care, Greensborough
Facility managers must have a good understanding of the replacement value of their assets, for insurance and valuation purposes. If you know the size of your facility in square metres, you can apply the rates noted in 1.1.
If not, you should have the property professionally measured up. If you would like help working out the size of your facility, CKA Group can provide a complete measure-up of your facility and a detailed inspection and maintenance report.
An approximate guide to the size of standard single occupancy room aged care facilities is as follows:
| 20 bed standard facility with small commercial kitchen, dining, lounge, laundry, admin | 1,600 m² |
| 30 bed standard facility with small commercial kitchen, dining, lounge, sitting, laundry, consulting room, admin | 2,000 m² |
| 60 bed standard facility with commercial kitchen, multiple dining and lounge areas, sitting, hairdressing, laundry, consulting room, admin | 4,000 m² |
| 90 bed standard facility with large commercial kitchen, commercial laundry, multiple dining and lounge areas, sitting, hairdressing, café, shop, day centre, training facilities, staff and maintenance areas | 6,500 m² |
Building, Furniture & Fittings Replacement Costs
1.1
| Cost per m² | |||
| Replacement Cost | Standard Finishes | Quality Finishes | Luxury Finishes |
| Building | $3,100 | $4,250 | $4,800 |
| Furniture & Fittings per bed | $10,000 | $12,000 | $17,800 |
Note: Building Replacement Costs include allowances for demolition following a fire, consultant’s fees (nominal 10%) and permits required to rebuild. These costs do not include external works and services and Authority charges. See 2.3 and 2.4. Separate allowance should be made when assessing insurance for loose furniture and equipment.
New Building Cost Indicator
Indicative new building costs for aged care facilities can be calculated by the following process:
| Stage 01 | Assess the quality of the facility and finishes you want to achieve. This is generally proportional to the sales or refundable accommodation deposit values in the local area. As a general rule, standard facilities are in outer suburban areas, quality facilities in middle suburban areas and luxury facilities in top-end suburbs and selected resort areas. |
| Stage 02 | Prepare a concept plan of the proposed facility. CKA Group can help you do this. |
| Stage 03 | Calculate the structural (shell) cost of new construction on a square metre basis. |
| Stage 04 | Calculate the cost of professional fees, permits, authorities charges and connection fees. |
| Stage 05 | Calculate the cost of fitting out kitchens, bathrooms and laundries. |
| Stage 06 | Calculate the cost of furniture and fittings. Include office and administrative furniture, nurses’ stations, beds, lounge and dining room furniture, curtains, blinds and artwork. |
| Stage 07 | Allow for consultants’ design fees, planning, building and authorities’ permit fees, and add GST. |
Structural (Shell) Cost
The shell includes the basic structure, bedroom, ensuites and floor finishes.
| Facility size (beds) | Cost per m² | ||
| Standard Finishes | Quality Finishes | Luxury Finishes | |
| < 30 | $2,800 – $3,400 | $3,100 – $3,700 | $3,500 – $3,650 |
| 30 – 60 | $2,750 – $3,400 | $3,000 – $3,650 | $3,400 – $4,200 |
| 60+ | $2,700 – $3,380 | $3,080 – $3,610 | $3,420 – $4,100 |
Fitout Cost
| Cost (Total) | ||
| Standard Finishes | Luxury Finishes | |
| Commercial Kitchen | ||
| < 30 bed facility | $150,000 | $220,000 |
| 30 – 60 bed facility | $220,000 | $330,000 |
| 60+ bed facility | $310,000 | $410,000 |
| Commercial Laundry | ||
| < 30 bed facility | $100,000 | $190,000 |
| 30 – 60 bed facility | $200,000 | $310,000 |
| 60+ bed facility | $320,000 | $360,000 |
| Public Access Toilet | $36,000 | $55,000 |
| Assisted Bathroom | $44,000 | $72,000 |
External Costs to be Added On
External works & services include those outside of the building line, including fencing, paths, hydraulic services, electrical and gas.
| 30 Bed Facility | 60 Bed Facility | |
| On Grade Car Parking | $133,000 – $190,000 | $210,000 – $280,000 |
| External Works & Services | 20 – 25% of building cost | 15 – 20% of building cost |
| Landscaping | $100,000 – $200,000 | $100,000 – $200,000 |
Fees
Consultants’ fees include fees for the architect, surveyor, town planner, structural and services engineering, building surveyors, landscape, quantity surveyor, etc.
Authority fees and permits can vary enormously depending upon zoning and planning conditions.
| Allowance | |
| Consultants’ Fees | 12 – 15% of building cost |
| Authorities Fees & Permits | 1 – 6% of building cost |
Aged Care Facility Sample Budget
| Number of beds | Area per bed | Total building area | Cost per m² | Total cost | |
| Luxury Finishes | 90 | 80 m² | 7,200 m² | $3,400 | $24,480,000 |
| Add for sloping site | $0 | ||||
| Add for adverse soil conditions | $0 | ||||
| Fitout | |||||
| Commercial Kitchen | $410,000 | ||||
| Commercial Laundry | $360,000 | ||||
| Assisted Bathroom | $72,000 | ||||
| Public Access Toilet | $55,000 | ||||
| INDICATIVE ESTIMATED TOTAL BUILDING COST (excl. GST) | $25,377,000 | ||||
| External Works & Services (nominal 20% of building cost) | $5,075,000 | ||||
| Car Parking | $280,000 | ||||
| Landscaping | $200,000 | ||||
| INDICATIVE ESTIMATED TOTAL CONSTRUCTION COST (excl. GST) | $30,932,000 | ||||
| Additional Costs | |||||
| Contract Contingency (nominal 5% of construction cost) | $1,547,000 | ||||
| Consultants’ Fees (nominal 12% of construction cost) | $3,712,000 | ||||
| Authority Charges (nominal 1% of construction cost) | $309,000 | ||||
| Loose Furniture & Equipment (nominal $17,800 per bed) | $1,602,000 | ||||
| INDICATIVE ESTIMATED PROJECT COST (excl. GST) | $38,102,000 | ||||
Regional Differences
Construction prices vary from city to city and are generally more expensive in rural areas. Using Sydney construction prices as a base, capital city adjustments are approximately as follows:
- Sydney 0%
- Melbourne -1%
- Brisbane +4%
- Perth +5%
- Hobart 0%
- Adelaide 0%
- Rural areas +5% to 15% depending on distance from major cities
Total Cost Structure
The approximate cost structure of new homes and renovations is as follows:
- Materials 40%
- Labour 30%
- GST, taxes, fees, permits 20%
- Builder’s profit margin 10%
Thank you for taking the time to read our Aged Care Construction Cost Indicator. If you are ready to start planning your aged care project, get in touch with our team today.
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