Changes to Development Works and Water Authorities
The Essential Services Commission
On July 1st as a result of the 2008 review by the Essential Services Commission, major changes came into effect, which significantly vary the way every water authority in Victoria levies fees. This determination also changed the way external and upsizing sewer and water works are funded.
The changes were initiated in an attempt to simplify the previous system and create a more equitable system for developers, however in many ways it has become more complicated. The line between ‘distribution’ assets and ‘reticulation’ assets (which was a major area of dispute in the past) still remains an issue because there is no clarification of this distinction, and too much relies on the decision of the water authority regarding asset sizes.
The position regarding costs associated with reticulation assets, which previously were the sole responsibility of the developer, has now changed for the better. The new determination states that the developer can only be required to pay for ‘their share’ of the reticulation asset, and that the water authority should fund the remainder - with the power to seek similar ‘shares’ as further development proceeds.
However, there are still many issues in the new process related to bringing forward costs for developments deemed to be ‘out of sequence’. Most specifically, the potential for reduced levies in these circumstances and as previously stated, the classification of an asset as a ‘reticulation’ or ‘distribution’.
We at Millar | Merrigan have spent a considerable amount of time learning about these changes and discussing them with the various water authorities. We are in an excellent position to assist you through the new process and outline how the changes may affect your project.
The New ‘Deed of Agreement’ System
All Melbourne-based water authorities have introduced a new Deed of Agreement system for all works carried out in the installation of water mains and sewer reticulation on new land developments.
Whilst the systems introduced by the different water authorities have similar elements, unfortunately there are also a lot of differences between them, which complicates and lengthens the process.
The basis of the new system is that the developer, water authority, consultant and water and sewer contractors all have to sign a Deed of Agreement that is designed to ensure that the works are:
- Constructed to the particular authority’s standards
- Taken off maintenance in a timely manner
- Accountable by all parties involved
Whilst this is a worthwhile objective it has added a number of additional steps in the approval process and lengthened the time required to get works going on site. One of the major requirements is to identify all parties that will be required to sign the Deed, most specifically the water and sewer contractors - as it is they (not the principle contractor) who are required to sign the Deed.
How Can Millar Merrigan Help?
We have a Quality Assurance system (QA) that covers all aspects of water mains and sewer reticulation, as well as full industry accreditation for this work. Because each of the water authorities has a different system, we advise of the specific requirements to ensure that the Deed of Agreement application proceeds quickly – this new Deed system often becomes a critical time factor and it is essential to make this process as efficient as possible to expedite the works. Our consultants have extensive experience, industry contracts and processes in place to efficiently negotiate the bureaucratic minefield involved in dealing with all the different water authorities.
We undertake the major part of the Deed of Agreement process – the preparation and printing of the Deed documents and arranging their execution. This is just one of the steps involved to get construction approval, and it is essential that this be started as early as possible. Other steps we can facilitate include site surveys, plan preparation, supervision of works, design, construction and asset recording plus all documentation and administration for each part of the project.
We understand that the timing of works and meeting your deadlines is critical. We can also give advice on cost effective design and construction methods, and are tenacious enough to challenge the authorities for your benefit to ensure the success of your project.
Millar | Merrigan prides itself results and finding the right team to complete your project. If you would like to contact them directly contact us today.
Millar | Merrigan prides itself results and finding the right team to complete your project. If you would like to contact them directly contact us today.
Tags: Deed of Agreement, Essential Services Commission, reticulation assets, upsizing sewer, Victoria levies fees, water authority, water works
