Calculating the cost of the building work

The building permit applicant must calculate and provide the required values for each component of the cost of work (CoW) formula as part of the building permit application. The relevant building surveyor (RBS) then uses this information to calculate the CoW to ensure the correct building permit levy (BPL) is paid.

The recent changes have altered how the CoW is to be provided on the application form (Form 1). If the RBS is not supplied with the information required by the updated Form 1, or they have concerns about the suitability or accuracy of the information provided. In that case, they can refuse the building permit.

If the information looks reasonable, the RBS is not obligated to review the contract details, including the applicant’s breakdown of contract costs or chattel calculations. Their role is to calculate the CoW using the figures provided in the Form 1, so the correct BPL is paid.

It is the applicant’s responsibility to ensure the information in their building permit application is true, accurate and not misleading. Further information, including the new formula for calculating CoW of building work, can be found at https://www.vba.vic.gov.au/surveyors/building-permits/calculating-the-cost-of-the-building-work