Reimbursements 1.8

An owner who’s required to build our assets in conjunction with the development is reimbursed an amount towards the cost of the works by us.

Reimbursement is not made for:

  • the upsized portion or additional length of works attributable solely to servicing the subject development

  • temporary works

  • works which are required to meet the owner's personal requirements.

Basis for determining of the reimbursement amount

In general, reimbursements apply to land owners who construct our drainage works. The drainage works reimbursement rate schedule is used to determine the applicable reimbursement, where the contract price is not more than $20,000. 

For larger contracts, we'll determine the reimbursement amount from tender prices.

Drainage works reimbursement rates schedule

The following rates are our current drainage works reimbursement rates, based on an industry-supported review of supply, delivery and construction costs for drainage projects. Earthworks rates vary with differences in the geology of the underlying soil, and therefore three geological regions have been identified, with differing reimbursement rates applied where appropriate.

The rates in the schedule are also used to estimate the construction costs of works when determining contribution rates for development services schemes.

Please note:

Please note these rates exclude GST.

Pipeline rates are determined by the size of the pipe required to meet our requirements, along with the type of joint system and the backfill requirements. We require flush jointed (or interlocking) pipes with 20% fine crushed rock (FCR) back fill. Some municipal councils have more stringent requirements.

Reimbursements for pipeline sizes larger than those shown will be based on actual project tender prices.

The values shown are primarily intended for use in projects in greenfield areas. It may be necessary to base reimbursement determination on actual tender prices for projects in other areas.

Use the maps below to find which reimbursement region applies to your development:

Map allocating local government areas into three regions: west, north east and south east. Reimbursement rates may differ according to each region.

Tender reimbursements

This reimbursement information applies to contracts greater than $20,000.  

Reimbursements for tenders 1.8.2

  • Development Services Scheme pipelines 1.8.2.1

  • Pipelines not in a Scheme 1.8.2.2

  • Wetlands not within retarding basins 1.8.2.3

  • Wetlands within retarding basins 1.8.2.4

  • Standalone retarding basins 1.8.2.5

  • Waterways 1.8.2.6

  • Raingardens 1.8.2.7

  • Provisional and contingency items 1.8.2.8

  • Variations 1.8.2.9

  • Site environmental management (provisional) 1.8.2.10

  • Engineering and council supervision 1.8.2.11

  • Non-competitive tenders 1.8.2.12

  • Table of reimbursable items in tenders 1.8.2.13 

Timing for reimbursement payments

We reimburse for works after the issue of a Certificate of Practical Completion and a Certificate of Completion as per the schedule below:

Pipes and concrete structures (hard engineered assets)

Works less than $20,000:

  • 100% of reimbursement to be paid after the issue of the Certification of Completion

Works between $20,000 and $40,000:

  • 100%t reimbursement amount less $2,000 to be paid after the issue of the Certificate of Practical Completion with the remaining payment made after the issue of the Certificate of Completion

Works between $40,000 and $100,000:

  • 100% reimbursement amount less $5,000 to be paid after the issue of the Certificate of Practical Completion with the remaining payment made after the issue of the Certificate of Completion

Works greater than $100,000:

  • 100% of reimbursement amount less 5% to be paid after the issue of the Certificate of Practical Completion with the remaining payment made after the issue of the Certificate of Completion.

Earthworks

Works between $20,000 and $40,000:

  • 100% reimbursement amount less $4,000 to be paid after the issue of the Certificate of Practical Completion with the remaining payment made after the issue of the Certificate of Completion.

Works between $40,000 and $100,000:

  • 100% reimbursement amount less $10,000 to be paid after the issue of the Certificate of Practical Completion with the remaining payment made after the issue of the Certificate of Completion

Works greater than $100,000:

  • 100% of reimbursement amount less 10% to be paid after the issue of the Certificate of Practical Completion with the remaining payment made after the issue of the Certificate of Completion.

Landscaping and planting works

100% of reimbursement amount less 50% to be paid after the issue of the Certificate of Practical Completion. We may consider a progress payment during the defects liability period of up to 25% of the reimbursement amount upon application by the developer with the remaining payment made after the issue of the Certificate of Completion.

Works ahead of time

In some instances the owner may require drainage works to be constructed ahead of time in order to provide the development with an adequate outfall as opposed to temporary works. On these occasions, the reimbursement may be determined using a cost benefit analysis to ensure that we're not financially disadvantaged. Details of these arrangements will be provided in the offer of conditions for the particular project.

Temporary works

All temporary works, including temporary inlet and outlet structures, downstream cleanout works and upstream transition or diversion works must be paid for by the owner, without reimbursement by us.

Progress reimbursements

For larger projects, we may consider making progress reimbursements to ease the capital outlay of the developer. In such instances, progress payments will generally be a minimum of $200,000 with at least 10% of the value of work being held in retention. Although copies of the contractor's paid progress claims provide helpful evidence of the value of completed works, our reimbursement to the developer may not necessarily coincide exactly with the timing or value of these payments.

Optional and discretionary works

The functional design information provided by us will identify the works considered necessary by us to provide an efficient drainage system addressing relevant health and safety, environmental protection, drainage and waterway issues. These works will form the basis for any reimbursement. Any additional discretionary works required by the owner must be paid for by the owner without any reimbursement by us.

Such works include:

  • additional length or size of works

  • filling and/or grading of roads, reserves or lots

Variations

Our preference is thorough investigative works and design analysis is undertaken during the design phase to eliminate the subsequent requirement for variations during construction. Unless tender variations and the associated costs are approved by us in writing prior to construction, it's not guaranteed we'll meet additional costs.

Commencement of works

Works shouldn't commence until we've provided written advice as to the approved reimbursement amount.

Recipient created tax invoice

Should the owner wish to offset the reimbursement amount against contributions, the owner must agree for GST purposes not to issue a tax invoice but instead agree to us preparing a Recipient Created Tax Invoice (RCTI).

We're authorised to prepare RCTIs under ATO ruling GSTR 2000/10 in order to comply with tax requirements where transactions include non cash components.

Engineering fees

Engineering fees associated with the design of drainage works that qualify for reimbursement will be reimbursed as a percentage of the total cost of work, in accordance with our engineering fee scale.

A calculator is available to determine the engineering fee:

Engineering fees represent the following tasks:

  1. Survey (for the scope of works as prescribed in the Works Offer)

  2. Prepare briefs, and coordinate specialist consultants (e.g. structural, geotechnical and Aboriginal cultural assessments; CCTV contractors)

  3. Coordination meetings between authorities and stakeholders

  4. Negotiating access for infrastructure works

  5. Design (concept design, functional design, detailed design)

  6. Plan preparation

  7. Calling separate tenders for our works, analysing and administering separate contract

  8. Contract management

  9. Project management

  10. Site inspections / surveillance / audits

  11. Core design and project management services within the civil and landscape disciplines

  12. QA certifications

  13. Establishment and monitoring of Environmental Management plans

  14. Administering projects for longer periods due to extended maintenance periods

  15. Preparing maintenance agreements

  16. Asset recording and preparation of As-constructed drawings and digital information

  17. Quality testing and inspections prior to handover (The cost of CCTV inspection of all drainage lines to be undertaken by the contractor, to the satisfaction of Council and Melbourne Water, will be reimbursed separately based on the competitive tender price.)

  18. Financial management

Engineering fees for the planting phase of the project may be calculated separate to the civil works but will still be based on our engineering fee scale.

Chart showing percentage of reimbursement relative to total cost of works.

Works where construction is less than $20,000

Flat fee of 25% (such as max = $5,000)

Works where construction is greater than $20,000

As per our engineering fee scale.

For projects greater than $1,000,000, the fee may be negotiated or based on the scale if this mutually acceptable.

For projects less than $1,000,000 a fee can be negotiated if it can be demonstrated the project is more complex.

 

Last updated: