This Cost Guide has been prepared from data provided by Caulfield Krivanek Architecture (CKA Group (ckagroup.com.au) in conjunction with Quantity Surveyors Rodney Vapp and Associates Pty Ltd (rodneyvapp.com.au). It is intended as a guide only 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 Rodney Vapp and Associates.
Contact CKA Group on 03 8658 4000 to discuss your Aged Care Project.
Note: Construction costs have stabilised over the last six months due to a downturn in apartment construction and an easing of supply chain problems. Labour shortages have eased, which means that labour costs have stabilised. Large infrastructure projects continue to put pressure on materials and labour, and when these come to completion, we will see further easing of labour and material problems. With the current downturn trend in the industry, we see construction costs remaining stable for the next twelve months. This trend is creating an increased availability of tradespeople and materials. The future is looking much brighter for prospective home builders, renovators and developers,given the above market conditions.
Asset Replacement Cost
It is important that facility managers 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 to 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 | 1,600m2 |
| 30 bed standard facility with small commercial kitchen, dining, lounge, sitting, laundry, consulting room, admin | 2,000m2 |
| 60 bed standard facility with commercial kitchen, multiple dining and lounge areas, sitting, hairdressing, laundry, consulting room, admin | 4,000m2 |
| 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 | 6,500m2 |
If you would like to help work out the size of your facility, CKA Group can provide a complete measure-up of your facility and a detailed inspection and maintenance report.
1.1 Building and Furniture & Fittings Replacement Costs
| 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 that 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 & equipment.
New Building Cost Indicator
Indicative new building costs for aged care facilities can be calculated by the following process:
a) Assess the quality of 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 are in middle suburban areas, and luxury facilities are in top-end suburbs and selected resort areas.
b) Prepare a concept plan for the proposed facility. CKA Group can help you do this.
c) Calculate the structural (shell) cost of new construction on a square metre basis.
d) Calculate the cost of fitting out kitchens, bathrooms and laundries.
e) Calculate the cost of furniture and fittings. Include office and administrative furniture, nurses’ stations, beds, lounge and _…dining room furniture, curtains, blinds and artwork.
f) Allow for consultants’ design fees, planning, building and authorities’ permit fees.
2.1 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 – 4,650 |
| 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 |
2. 2 Fit out Cost
The shell includes the basic structure, bedroom, ensuites and floor finishes.
| 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 | $3630,000 |
| Public Access Toilet | $36,000 | $55,000 |
| Assisted Bathroom | $44,000 | $72,000 |
2.3 External costs to be added on
External works & services include those outside of the building line, including fencing, paths, hydraulic services, electrical and gas
| Allowance | Allowance | |
| 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 |
2.4 Fees
Consultants’ fees include fees for the architect, surveyor, town planner, structural and services engineering, building surveyors, landscape, quantity surveyor etc.
Authorities 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 |
Sample Budget for Aged Care Facility
| Number of beds | Area per bed | Total building area | Cost per m2 | Total cost | |
| Quality finishes | 90 | 80m2 | 7,200m2 | $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) | $5,750,000 | ||||
| Car Parking | $280,000 | ||||
| Landscaping | $200,000 | ||||
| INDICATIVE ESTIMATED TOTAL CONSTRUCTION COST (excl. GST) | $31,607,000 | ||||
| Additional Costs | |||||
| Contract Contingency (nominal 5% of building cost) | $1,580,000 | ||||
| Consultants Fees (nominal 12% of building cost) | $3,790,000 | ||||
| Authority Charges (nominal 1% of building cost) | $316,000 | ||||
| Loose Furniture & Equipment (nominal $10,000 per bed) | $1.600,000 | ||||
| INDICATIVE ESTIMATED PROJECT COST (excl. GST) | $38,890,000 |
2.5 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:
- Melbourne -1%
- Brisbane +4%
- Adelaide 0%
- Perth +5%
- Hobart 0%
2.6 Total Cost Structure
The approximate cost structure of new homes and renovations is as follows:
- Materials 40%
- Labor 30%
- Rural areas +5% to 15% depending on distance from major cities
Find out more about why you should choose us to be your aged care architects.
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