UPDATED: Aged Care Cost Indicator
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About this Cost Guide
This Cost Guide has been prepared from data provided by Caulfield Krivanek Architecture in conjunction with Quantity Surveyor Rodney Vapp and Associates Pty Ltd. It is intended as a guide only to assist the managers of aged care facilities and retirement living complexes undertake basic planning for new facilities and extensions to existing ones.
More accurate costs can be provided from concept sketches prepared by Caulfield Krivanek Architecture and financial analyses prepared by Rodney Vapp and Associates.
Contact Caulfield Krivanek Architecture on 03 8658 4000 to discuss your Aged Care Project.
- 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 table 1.1. If not, you should have the property professionally measured up. 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||1,100m2|
|30 bed standard facility with small commercial kitchen, dining, lounge, sitting, laundry, consulting room, admin||1,400m2|
|60 bed standard facility with commercial kitchen, multiple dining, and lounge areas, sitting, hairdressing, laundry, consulting room, admin||2,900m2|
If you would like help working out the size of your facility, Caulfield Krivanek Architecture 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|
|Furniture & Fittings||$8,000||$10,000||$15,000|
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 & equipment.
2. New Building Cost Indicator
Indicative new building costs for aged care facilities can be calculated by the following process:
- Assess the quality of facility and finishes you want to achieve. This is generally proportional to the sales or bond 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.
- Prepare a concept plan of the proposed facility. Caulfield Krivanek Architecture can help you do this.
- Calculate the structural (shell) cost of new construction on a square metre basis.
- Calculate the cost of fitting out kitchens, bathrooms and laundries.
- Calculate the cost of furniture and fittings. Include office and administrative furniture, nurses’ stations, beds, lounge and dining room furniture, curtains, blinds and artwork.
- 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||$2,180- 2,680||$2,420-2,880||$2,720-3,310|
2. 2 Fit out Cost
|Standard Finishes||Luxury Finishes|
|< 30 Bed Facility||$120,000||$180,000|
|30-60 Bed Facility||$180,000||$270,000|
|60+ Bed Facility||$250,000||$330,000|
|< 30 Bed Facility||$80,000||$150,000|
|30-60 Bed Facility||$160,000||$370,000|
|60+ Bed Facility||$250,000||$280,000|
|Public Access Toilet||$30,000||$45,000|
2.3 External costs to be added on
External works & services includes those outside of the building line, including fencing, paths, hydraulic services, electrical and gas
|30 Bed Facility||60 Bed Facility|
|On Grade Car parking||$90,000-120,000||$140,000-160,000|
|External Works & Services||20-25% of building cost||15-20% of building cost|
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.
|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|
|Add for sloping site||$0|
|Add for adverse soil conditions||$0|
|Public Access Toilet||$35,000|
|INDICATIVE ESTIMATED TOTAL BUILDING COST (excl. GST)||$8,511,000|
|External Works & Services (nominal 20% of building cost)||$1,589,000|
|INDICATIVE ESTIMATED TOTAL CONSTRUCTION COST (excl. GST)||$10,370,000|
|Contract Contingency (nominal 5% of building cost)||$490,000|
|Consultants Fees (nominal 12% of building cost)||$1,180,000|
|Authority Charges (nominal 1% of building cost)||$100,000|
|Loose Furniture & Equipment (nominal $10,000 per bed)||$600,000|
|INDICATIVE ESTIMATED PROJECT COST (excl. GST)||$12,837,000|
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%
- Labour 30%
- Rural areas +5% to 15% depending on distance from major cities
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