Managing Authority Connections

Every property development requires coordination with various authorities, such as the local council for planning permission or the power authority for new power connections. While obtaining a planning permit is an obvious necessity, allocating sufficient time, resources, and funds for other approvals, consents, and connections is often overlooked, underestimated, or delayed until the last minute.

Here is Hub’s quick guide to Managing Authorities:

1. Identify your relevant authorities and the services connected to or near the site.

• Lodge your project with Home | Before You Dig Australia (BYDA)
• Contact each relevant authority to request details of assets connected to your property.
• Inquire if any planned network changes in the area will affect your site.

2. Evaluate the available services at your site and the services required for your development.

• Engage a services engineer early in the process to conduct a quick load assessment of your development’s requirements and determine the capacity of current service connections.
• Conduct an assessment of the suitability of the network in the surrounding area.
• Keep in mind that, with most authorities, any changes to the network or new connections are the responsibility of the developer. Understanding these requirements early will help avoid unexpected costs and delays later on.

3. Factor in existing infrastructure during the design phase and conduct a cost-benefit analysis of using existing infrastructure versus upgrading.

• Be aware that various authorities have restrictions on how close you can build to their assets. For instance, overhead high voltage power lines typically require a 6-meter clearance from any structures. These lines can be placed underground, but this process can cost hundreds of thousands and require considerable time for design and implementation.
• Consult your services engineer and infrastructure provider to understand these constraints specific to your site and include these costs in your early feasibility studies.

4. Submit service applications as early as possible

• Applications to connect to authority services typically require planning permission and sufficient design work to be completed. Have your services engineers conduct detailed load assessments once the building plans are finalised and submit the applications as soon as possible. Some authorities may require in-house design work, which is often at the developer’s expense. This is common with power and substations. The authority will invoice for the design work, which they will only undertake once paid. A formal offer for the new connection can only be provided once the design is complete.

5. If you’re dissatisfied with the service offer and fees, you can challenge them, but be prepared for this to be time-consuming

• Most authorities provide a process for reviewing fees and charges. In recent years, the costs of authority connections have risen significantly, making this review worthwhile, but it does lengthen the overall process.
• Seasoned service engineers are well-versed in the expected costs for connections and can offer advice on the fairness of any offer.

6. Gain a clear understanding of the process from application submission to approval and the commencement of works

• Upon lodging an application, seek clarification from the authority regarding the subsequent steps and the responsible parties. Many authorities subcontract various elements of their works, adding another layer of management. Identify your case manager and establish a rapport with them. Given the lengthy queue of works, endeavour to position yourself as close to the top as possible through proactive engagement.

7. Ensure that the builder is responsible for coordinating Authority works, especially in Design and Construct (D&C) contracts

• In your D&C contract, include an Authorities Responsibility Matrix that clearly defines coordination responsibilities and cost ownership. Specify critical milestone dates for each application and monitor them in monthly reports.

8. Be prepared to bear the costs and risks of Authority connections.

• Few builders are willing to shoulder the financial risk of such connections. Be prepared to promptly cover expenses for authority designs, quotations, and works upon invoice issuance. Failure to make timely payments could result in work delays, potentially subjecting you to builder delay damages. If you’re utilising bank financing for construction, ensure that it encompasses funding for Authority connections as well.

9. Be aware that all offers have an expiration date and extensions are rarely granted

• Most authority offers stipulate a deadline for the completion of works. Extending these offers is challenging, as network conditions may have changed, necessitating the redesign of work. Keep a close eye on the expiration date, as missing it can be costly and cause delays to the construction schedule, potentially requiring a return to the drawing board.

10. Breathe a sign of relief once your services are connected and take on any lessons learnt for the next one, unfortunately, the process is never exactly the same