RSA - The Apartment Construction Cost Demonstration Project - v6 - Final - WEB

THE APARTMENT CONSTRUCTION
COST DEMONSTRATION PROJECT

RESEARCH PROJECT
“AN AFFORDABLE PLACE
TO LIVE IS MORE THAN JUST
HOUSING AND HOUSEHOLD
COSTS. IT INCLUDES THE
NEIGHBOURHOODS THAT
ARE CREATED AND THE
COMMUNITIES THAT EMERGE.
IT IS ABOUT THE CONNECTIONS
THAT ARE SUPPORTED,
SERVICES THAT ARE PROVIDED
AND THE LIFESTYLES
THAT ARE SUSTAINED”
renewalsa.sa.gov.au/projects/apartment-cost-demonstration-project
3 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
Disclaimer: This Report was produced by
The information contained in this

document is only intended to be a
report of the experience of Renewal SA
in relation to a specific development
project undertaken by Renewal SA. The
Government of South Australia does not
warrant (express or implied) that the use of
any of the information (in whole or in part)
contained in this document will deliver the
same or similar results or outcomes for
other development projects. No warranty,
express or implied is made regarding
the accuracy, adequacy, completeness,
reliability, suitability or usefulness of
the whole or any part of the information
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contained in this document. You should
seek your own independent expert advice Builder Partner
and make your own enquiries and satisfy
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for negligence) for any direct or indirect
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of South Australia, its servants or its agents
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negligence, will not exceed $10.00. And our
Design Partner Lead

Studio Nine Architects

INDEX
Executive Summary PART A
Lessons learned by the process
Process flow chart – Research & design
The Report documentation phase
“Why we did, what we did” a. Commitment to collaborative process
1. Delivering housing affordability b. Establishing the project success factors
for Adelaide
c. Implementing a ‘first principles’ approach
2. Sharing the learnings
d. Determining cost centres
3. Paramount objectives
e. Developing the concept design
4. Industry involvement
f. Value engineering
“What we did”
g. Interim Stop / Go Assessment
5. Project Scope
h. Validating the concept design
6. Total project construction cost
“What we learned”
7. Key findings
^^ Design and construction lessons

^^ Lessons learned by the process
^^ Commercial assessment
8. Research phase
9. Construction cost reduction
10. Project design
11. Apartment layouts
12. Construction options
^^ he preferred option
T
^^ Other options considered
^^ Alternative options
^^ Prefabrication
^^ Cross laminated timber
^^ Under-croft car parking options
13. Summary
PART B Conclusion
Case Study
Introduction
Appendices
^^
^^ The Brief
^^ Turn key objectives & marketability 1. Key project participants
^^ Research and Design: the process not the
2. Partner profiles
solution
^^ Materials matrix sheet 3. High level design outcomes
^^ Design methodology – the solution 4. Affordable housing price points
approach
^^ Sustainability 5. IRG participation
^^ Various options 6. Project schedule
^^ Cost reduction approach
7. Cost centres
^^ Shortlisted construction options
^^ Iterative process & value engineering 8. Workshops
^^ Superstructure construction: walls
9. Designs
and floors
^^ Commitment to detail design
^^ Construction options
^^ Prefabricated bathroom pods
^^ Accessible apartment option
^^ Method of measurement
^^ Assessment metrics
^^ Statutory requirements
^^ Site constraints
^^ Servicing
^^ Building Management
EXECUTIVE SUMMARY
The Apartment Construction Cost m2 (GST exclusive) for the demonstration
Demonstration Project was an innovative and project. It is important to note that
collaborative partnership between Renewal depending on market conditions and supplier
SA and the private development sector relationships, pricing can vary. Indeed, the
to investigate contemporary design and project revealed a plethora of new materials
construction approaches to minimise building and emerging systems continually coming to
costs. market. Ultimately, the most cost effective
system will depend on the developer’s specific
Following a public expression of interest apartment design.
process run by Renewal SA in mid-2014, multi-
award-winning firm Mossop Construction + Based on the project team’s experience,
Interiors was appointed as the builder partner adopting some or all of the following
and leading Adelaide architectural firm Studio principles were found to be effective
Nine was chosen as the design team leader. in reducing construction costs for the
demonstration project:
Consistent with State Government urban
planning policy, identifying more cost- ^^ Modular layout with straight and aligned
effective construction methodologies for walls on a grid pattern at span widths of
multi-storey residential buildings supports the structural/ flooring systems
higher urban density and urban infill within ^^ Reducing the volume of material by
the middle ring suburbs. designing all load-bearing walls to the
ground (using direct load paths) to avoid
Industry and Renewal SA experience shows
secondary framing
that typical apartment construction rates
make it challenging to recover construction ^^ Co-location of services to allow floors to be
costs from the selling prices supported by easily ‘stacked’
the market outside of the CBD, near CBD ^^ Optimal spans of around three metres to
locations, beachfront and other selected allow a wider choice of materials and to
high amenity nodes within metropolitan reduce waste during construction
Adelaide. Typical apartment construction ^^ Designing all bedrooms, kitchens and
rates are often more than double the cost per bathrooms to be of similar size and layout
square metre of a two-storey detached home. to maximise replication and reduce costs
Analysis by Renewal SA indicated that a total
^^ Rationalise room orientation to have direct
project construction cost between $1800 and
light and ventilation
$2000 per m² (GST inclusive) would need to
be achieved to ensure commercially viable ^^ Easy fire compartmentalisation
apartment developments of four storeys. This ^^ Compact common areas (which will also
became the target construction cost range reduce community corporation costs)
for the project which compares favourably ^^ Moving wet areas to external walls of
to historical apartment build costs between apartments to minimise noise-reduction
$2400 and more than $3000 per m² (GST costs
inclusive).
^^ Reduced building footprint
The demonstration project highlights the ^^ No roof plant
exciting potential for cost savings and ^^ Prefabrication such as bathroom pods,
improved design outcomes through early pre-built internal and external walls, and
and ongoing collaboration between the floors.
design team and the builder.
Summing up: this report does not propose
The preferred construction system a single solution to every building cost
determined by the project team was a challenge. Rather, it demonstrates a logical
combination of an insulated concrete form step-by-step process whereby developers
(ICF) product for the external and internal can assess options in terms of design,
walls and a pre-cast concrete floor cassette material selection, construction methodology,
system for the floors. site influences and building layout. The
methodology outlined in this report can be
The system achieved the target cost per
applied to the construction of any multi-
square metre rate, with a market-tested price
storey apartment building.
of $1974 per m2 (GST inclusive) or $1795 per
“GIVEN THIS INDUSTRY-
WIDE CHALLENGE, TO FULLY
ADDRESS THE ISSUES OF
HOUSING AFFORDABILITY
AND CHOICE, PARTNERSHIPS
BETWEEN THE PRIVATE,
GOVERNMENT AND
NOT-FOR-PROFIT SECTORS
ARE REQUIRED TO IDENTIFY
INNOVATIVE AND CREATIVE
NEW SOLUTIONS”
THE REPORT
This report covers the learnings from the disabilities.
process of research, design development
and documentation. It consists of this Report Identifying more cost-effective construction
Summary, and includes two supporting methodologies for multi-storey residential
sections: Part A – Lessons Learned and Part buildings supports higher urban density and
B – Case Study. urban infill within the middle ring suburbs.
With this in mind, a key objective of the

“Why we did, what we did” demonstration project is to deliver a market-
based methodology that has the potential to
1. Delivering housing affordability be replicated to achieve lower construction
for Adelaide costs for a four-storey apartment building
than have historically been achieved in
The South Australian Government’s urban
Adelaide.
planning and development aspirations for
the next 30 years aim to ensure that Adelaide Industry and Renewal SA experience shows
remains a city that is liveable, sustainable and that typical apartment construction rates
productive. make it challenging to recover construction
costs from the selling prices supported by
The State has been a leader in housing
the market outside of the CBD, near CBD
affordability: a key strategic priority for the
locations, beachfront and other selected high
government continues to be ensuring that
amenity nodes within metropolitan Adelaide.
more South Australians have an affordable
home in a location of their choice. Housing Given this industry-wide challenge, to fully
represents the single largest expense in the address the issues of housing affordability
average household budget and, for most and choice, partnerships between the private,
South Australians, their quality of life is government and not-for-profit sectors are
influenced by the rising costs of housing, required to identify innovative and creative
transport and utilities. new solutions.
Ultimately, the planning of our As part of the contemporary thinking that
neighbourhoods and the design of our homes is required, Renewal SA embarked on
can also help reduce the cost of living and this demonstration project to design and
improve our general wellbeing. construct a four-storey apartment building
in a middle ring suburb that delivers a
The Apartment Construction Cost
commercial return and does not require a
Demonstration Project is an innovative and
subsidy to achieve a selling price for each
collaborative partnership between Renewal
apartment that is market responsive.
SA and the private development sector
to investigate contemporary design and Industry and Renewal SA experience shows
construction approaches to minimise building that typical apartment construction rates are
costs. often more than double the cost per square
metre of a single-storey detached home.
The State Planning Strategy forecasts
Analysis by Renewal SA indicated that a total
a requirement for at least 38,700 new
project construction cost between $1800 and
affordable homes in Greater Adelaide
$2000 per m² (GST inclusive) would need to
and 7,000 new affordable homes in non-
be achieved to ensure commercially viable
metropolitan areas of the state over the next
apartment developments of four storeys. This
30 years.
became the target construction cost range
Under the State Government’s planning for the project which compares favourably
vision, the majority of new homes are to be to historical apartment build costs between
built within existing urban areas to better $2400 and more than $3000 per m² (GST
utilise existing infrastructure and to enable inclusive).
ease of access to transport, jobs, education
and other services and facilities. Projections,
however, indicate restricted housing choices
and a shortfall of well-located dwellings and
affordable dwellings for rental and purchase
suited to an aging population or those with
2. Sharing the learnings 3. Paramount objectives

Benefits experienced by Renewal SA of the The demonstration project, managed by
Apartment Construction Cost Demonstration Renewal SA, has two paramount objectives
project are intended to be communicated by to benefit industry initially and ultimately
Renewal SA and this report is the first of a homebuyers:
number of initiatives to share the learnings.
1. Deliver an apartment building for public
Disseminating the learnings of the sale at market price points for inner/
demonstration project will help to overcome middle ring metropolitan locations, in
the current high apartment construction costs a manner that has the potential to be
which are a barrier to the delivery of this form replicated. To do this, the project set out to
of housing in the broader Adelaide market. achieve a target building construction cost
Renewal SA intends to communicate the that results in a significant reduction in
following types of project learnings: total project cost.
^^ the collaborative benefits of builders and 2. Share the learnings with the construction
designers working together; and development industry of how such
a reduction was achieved – particularly
^^ design efficiency;
around techniques and practices for
^^ cost and buildability of varying building layout, site layout, construction
construction methods; methodology and choice of materials.
^^ how material selection impacts upfront
building costs for developers; and In order to deliver these paramount
objectives, the following project scope was
^^ the life cycle cost to future apartment
established:
owners.
The purpose of this report is to provide a ^^ Investigate alternative construction
update to industry on the demonstration techniques and design efficiencies
project and to stimulate ideas for future cost based on residential/ domestic building
effective housing projects currently underway approaches to achieve lower building
or in early planning by the private sector. construction costs than has historically
been achieved potentially using timber or
The report is not intended in any way to steel framing systems (or other building
be a definitive ‘how to’ guide on apartment systems);
building design and construction. The ^^ Demonstrate design innovation
research and design documentation phase incorporating sound sustainability
demonstrated that the cost of floor and principles;
walling systems and construction materials
^^ Deliver demonstration projects within an
can vary significantly depending on market
existing Renewal SA project;
supply and demand, the buying power of
the builder and the relationship between the ^^ Meet the State Government’s 15%
builder and a supplier. affordable housing requirement;
^^ Ensure any newly-created intellectual
No single building system, construction property is available to the construction
methodology or material had a major and development industry;
advantage – although some are clearly more
cost and time effective than others for a four- ^^ Collaborate with the broader private
storey apartment building. sector development industry by direct
engagement with firms involved in
Nonetheless, the project clearly demonstrates apartment project delivery and via
the benefits of flexible thinking when industry representative bodies.
assessing the variety of floor and walling ^^ Proceed to on-site delivery only on the
systems and materials available for multi- basis of meeting target construction costs
storey residential construction. This open- (and therefore a total development cost)
minded approach is especially important and being market based to achieve a
given the continual release of new commercial return so that the project has
technologies and materials to market. Even the potential to be replicated.
more significantly, the demonstration project
shows the exciting potential for cost savings
(and better design outcomes) through early
and ongoing collaboration between the
design team and the builder.
4. Industry involvement development activity to determine cost-

effective building technologies and cost
Renewal SA appointed an Industry Reference engineering. Anticipated outcome will
Group (IRG) representing the Urban be construction-ready documentation to
Development Industry Association, Housing achieve the target cost-per-square-metre
Industry Association, Property Council, construction rate.
Master Builders Association, Australian ^^ Stage 3 (construction and selling phase):
Institute of Architects, Planning Institute on-site delivery of civil and apartment
of Australia and the Australian Institute of construction subject to approvals.
Building Surveyors.
The construction cost target of $1800 to
The role of the IRG is to provide input into $2000 per m2 (GST inclusive) is based on
the progress of the demonstration project, anticipated retail selling prices for apartments
as well as ensuring the formal exchange in the high $200,000s to low $300,000s that
of learnings from the project site. Where have been established in Stage 1 of Renewal
relevant, the IRG will share contributions from SA’s The Square at Woodville West medium
industry on cost effective medium-density density residential project.
apartment development. The IRG provided
guidance throughout the research and design The height of four storeys was chosen
documentation phase of the demonstration after industry advice through the Industry
project and will continue to be involved if the Reference Group that this would represent a
project proceeds to the construction phase. viable demonstration project given existing
experience in being able to achieve three-
The IRG first met in March 2014 to provide storey apartment buildings at approximately
guidance on key project decisions such as the $1800 per m² (GST inclusive).
target square metre rate and the height of the
proposed building. As part of the scope, Renewal SA resolved
that if the project achieves the right price
“What we did” and the right design, Renewal SA would
then determine the method of delivery for
5. Project Scope construction.
The demonstration project was managed by A site in Renewal SA’s project, The Square at
Renewal SA and involved the selection of a Woodville West, was chosen as it represents
builder partner and a design partner from the a typical middle ring suburban location within
private sector. Following a public expression metropolitan Adelaide.
of interest (EOI) process run by Renewal SA in
mid-2014, multi-award-winning firm Mossop Since the completion of the public EOI
Construction + Interiors was appointed as process in September 2014, the project
the builder partner and leading Adelaide team has completed the research and
architectural firm Studio Nine was chosen as design documentation phase by June 2015,
the design team leader. culminating in this report. Following all
necessary statutory approvals, construction
The project scope comprised the following of the apartment building began in November
four stages: 2016 and is scheduled for completion in late
2017.
^^ Stage 1A (builder partner selection):
first EOI process to select a preferred 6. Total project construction cost
Proponent with the expertise and capacity
to build a residential apartment building at For the purpose of the demonstration project,
Renewal SA’s Woodville West development. total project construction cost is defined as:
^^ Stage 1B (design team selection):
The combined cost of site works; at-grade car
second EOI process to select a design team
parking; building services and infrastructure;
including civil, structural and mechanical
building cost; landscaping; builder’s margin
engineering specialists and other relevant
and overheads and including GST. The total
construction consultants.
project cost excludes design and consultants’
^^ Stage 2 (research and design fees.
development phase):
collaborative stage between builder
partner, design team and Renewal
SA requiring extensive research and
“What we learned” c. Work to date clearly demonstrates

the benefits of flexible thinking when
7. Key findings assessing the variety of floor and walling
systems and materials available for multi-
Benefits of collaboration storey residential construction.
One of the key outputs from the research d. An open-minded approach is especially
phase of the project was the confirmation important given the continual release of
by the project team of the benefits of new technologies and materials to market.
collaboration. The demonstration project
does show the exciting potential for cost Lessons learned by the process
savings and improved design outcomes
The following lessons learned have been
through early and ongoing collaboration
derived from the project team’s experience
between the design team and the builder.
during the research and design development
Design findings phase. These lessons learned can be
considered a useful guide for builders and
Collaborative input between the designer architects aiming to achieve more cost
and builder leads to efficiency in design. effective construction of medium rise
Investigations include: apartment buildings. The following steps
represent a well-defined process to achieve a
a. Modular layout & co-location of services nominated target construction cost:
b. Reducing material volume by designing a. Commitment to collaborative process:
load-bearing walls to ground establishing the earliest possible
collaboration between the design and
c. Optimal spans results in a wider materials
builder teams is critical to success.
choice and reduced waste
b. Establishing the project success factors:
d. Designing rooms to be the same size and
once you have agreed your project success
layout maximises replication
factors, document them and provide
e. Rationalise room orientation to have to every team member as a continual
direct light and ventilation reminder of the big picture.
f. Easy fire compartmentalisation & compact c. Implementing a ‘first principles’ approach:

common areas start with a blank sheet of paper and
don’t approach the task in a certain way
g. Moving wet areas to external walls to because “that’s the way its always done”.
minimise noise-reduction costs
d. Determining cost centres: accurately
h. Reduced building foot print & no roof determine the true cost of each building
plant element and focus on those elements
where maximum savings can be achieved.
Construction findings
e. Developing the concept design: avoid
Potential cost savings through early and being “blinded” by the detail and always
ongoing collaboration between the design find the solution that delivers the big
team and the builder. picture.
a. The cost of floor and walling systems f. Value engineering: start and continue with
and construction materials can vary an open mind always reviewing the design
significantly depending on: for building efficiency and cost savings.
^^ market supply and demand g. Interim Stop / Go Assessment: make
^^ the buying power of the builder sure the design and costs are absolutely
^^ the relationship between a builder aligned to the project objectives and is
and a supplier market responsive.
b. No single building system, construction h. Validating the concept design: even late
methodology or material had a major in the design and tendering process,
advantage - although some are clearly be willing to substitute a particular
more cost-effective than others for a four- product with another of similar or better
storey apartment building. performance characteristics.
Commercial assessment Investigations and assessments

Consistent with the EOI requirement for the Led by builder partner Mossop, the design
demonstration project to be commercially team coordinated by Studio Nine undertook
replicable, a return on investment (ROI) of the following investigations and assessments:
16% to 20% was advised by the IRG to be a
suitable benchmark. ^^ Six Research workshops
^^ 13 supplier presentations
Based on the final fully documented design
^^ 11 wall & floor systems
of the preferred construction option, with a
^^ 17 cladding systems
tendered price and independent appraisals
of each apartments selling prices, an ROI ^^ Site visits
within this range has been achieved for the ^^ Insulated concrete formwork
demonstration project.
^^ Modular prefabricated systems
8. Research phase ^^ Identification of cost centres

^^ Floor and support systems 10-14%
The project team identified that the following
^^ External wall systems 9-12%
research areas would be investigated as
potential ways to improve design and to ^^ Design development
reduce construction costs: ^^ Continual evaluation of alternatives
^^ Open minded/ flexible thinking

Design
^^ Continual review & collaboration
^^ Efficiency: floorplans eliminating wasted

space minimises building area and allows 9. Construction cost reduction
‘stack-ability’ of floors to achieve vertical
Based on the project team’s experience
load paths and economical service runs.
and learnings, adopting some or all of the
^^ Standardisation: reduces the risk of errors following principles were found to be effective
during construction (and therefore cost), in reducing construction costs for the
making construction easily replicated. demonstration project:
^^ Prefabrication: bathroom pods, pre-built
internal / external walls and floors. a. Modular layout with straight and aligned
walls on a grid pattern at span widths of
Construction the structural/ flooring systems
In addition to these design considerations, the b. Reducing the volume of material by

following four principles were adopted in the designing all load-bearing walls to the
demonstration project to reduce construction ground (using direct load paths) to avoid
costs: secondary framing
^^ Materials and ‘de-materialisation’ c. Co-location of services to allow floors to

using less materials and layers, be easily ‘stacked’
pre-fabrication to speed up on-site
d. Optimal spans of around three metres to
erection and assembly, whilst including
allow a wider choice of materials and to
considerations such as durability, fire and
reduce waste during construction
acoustic properties and reduced labour
and waste. e. Designing all bedrooms, kitchens and
^^ Labour bathrooms to be of similar size and layout
reduced number of trades on site, better to maximise replication and reduce costs
work health and safety, less travel and fuel.
Sequencing of trades for less wet trades f. Rationalise room orientation to have
and re-attendance. direct light and ventilation
^^ Ease of construction g. Easy fire compartmentalisation
reduced time, less equipment hire and
lower preliminaries. h. Compact common areas (which will also
^^ Reduced maintenance costs reduce community corporation costs)
providing in-built sustainability based on i. Moving wet areas to external walls of
lower life-long maintenance costs by using apartments to minimise noise-reduction
pre-finished and durable materials. costs
j. Reduced building footprint
k. No roof plant
l. Prefabrication such as bathroom pods,

pre-built internal and external walls,
and floors.
10. Preferred design
Visual 1: The site plan of the demonstration project
The preferred design comprises a 20-apartment lifted building of four storeys with:
^^ total floor area of 1985m2 ^^ 20 undercover carports each with a

^^ 583 m2 at-grade car park with 24 bays storage locker
^^ total site area of 1390m2 ^^ 5 apartments on each of the 4 levels
^^ exclusively residential ^^ modular design based on optimal span
distances of differing structural systems
^^ compliant with relevant City of Charles
Sturt Development Plan ^^ saleable area to gross building area
represents 87% efficiency
^^ main street frontage with vehicle access
from side lane
11. Apartment layouts

The building features a mix of one and two bedroom apartments based on anticipated market
demand with an efficient use of space with pleasant spatial flows as follows:
Type Floor Area (m2) Number Mix Anticipated Retail Price

1 bed 54.2 2 10% From $265,000
1 bed + study 56.5 2 10% $310,000 – $320,000
2 bed 64.2 to 70.5 8 40% $315,000 -$330,000
2 bed + study 69.7 to 71.9 8 40% $325,000- $342,000
Table 1: Apartment details
Visual 2: Floor plans of the demonstration project
In addition to the above floor areas, each apartment has a minimum 12m2 of balcony space
and about 8m3 of external storage space located either in the carport parking bays, as separate
storage unit within the building envelope, or incorporated in ground floor private open space.
12. Construction options

To determine the preferred construction As part of this process, estimated costs were
methodology the project team, led by Mossop derived for eight options based on the final
evaluated a wide range of material and design.
construction systems. These were assessed
on availability, buildability and cost with more Using the criteria of availability, buildability
expensive options not considered further. and cost, the top three performing options
were market tested by Mossop which
conducted a tender process based on fully
documented drawings and specification.
Visual 3: 3D view, front of building
The Preferred Option ^^ satisfies BCA requirements without

supplementary materials
The preferred construction system ^^ cost effective outer skin
determined by the project team was a
^^ ease of construction
combination comprising an insulated concrete
form (ICF) product for the external and The preferred construction system met the
internal walls and a pre-cast concrete floor target cost per square metre rate achieving
cassette system for the floors. a market tested price of $1974 per m2 (GST
inclusive) or $1795 per m2 (GST exclusive) for
It is important to note that depending on
the demonstration project.
market conditions and supplier relationships,
pricing can vary. The most cost effective The cost analysis becomes more favourable
system will depend on the developer’s specific when the carpark and landscaping costs
apartment design. For the demonstration of the development are excluded from the
project the ability to substitute key selected overall building cost, reducing the rate to
materials offered the advantage of not being $1870 per m2 (GST inclusive) or $1700 per m2
locked in to any one product, allowing for (GST exclusive) based only on the building
ease of replacing one item for another with cost and area.
minimal impact on documentation.
Other options considered
The project team resolved that the pairing
of the products used provided the following The following two other options were also
buildability advantages for the demonstration market tested, based on fully documented
project: designs for the demonstration project:
^^ flexibility in design options for the wall Option 2
profile ICF walling and pre-cast concrete floor
^^ achieves acoustic thermal and fire rating cassette system flooring. The rate achieved
requirements was $1985 per m2 (GST inclusive) or $1805 per
^^ meets de-materialisation strategy to m2 (GST exclusive) (based on an alternative ICF
reduce the amount of materials proprietary product than for option 1).
^^ lowest floor to floor height to reduce
building height
Option 3 ^^ not cost competitive (against traditional

Precast concrete external wall frames and trade approach)
ICF internal walls with pre-cast concrete floor ^^ issues with fire integrity and penetrations
cassette system flooring. The construction of single occupancy units (of services and
rate for this system was $2028 per m2 (GST pipework)
inclusive) or $1845 per m2 (GST exclusive).
^^ accessibility of levels (step up into the
The following five remaining options were bathroom pod)
not market tested. A preliminary cost ^^ increased material use (double up of floors
estimate based primarily on floor and walling on floors).
costs (which typically represent the largest
cost centre expense at around 30% of the b) Cross Laminated Timber
total building cost) indicated that none of Cross Laminated Timber (CLT) was considered
these options were at or below the target by the project team at an early stage of the
construction rate for the demonstration evaluation process, however subsequent
project: supplier advice was that it was not cost
effective in a compact four-storey building.
Option 4
Precast concrete external walls with ICF party While CLT offers impressive lightweight
walls and pre-cast concrete floor cassette strength and rapid on-site construction, the
system: $2006 per m2 (GST inclusive) or $1825 supplier advised that it does not become cost
per m2 (GST exclusive). effective unless used in higher rising buildings
comprising in excess of 70 to 80 apartments.
Option 5
Hybrid framing using ICF and pre-cast c) Analysis of under-croft parking options
concrete floor cassette system using a Although the EOI requirement was for at-
transfer slab and timber elements to create grade car parking, under-croft and part
a heavyweight base with lightweight upper under-croft car parking options were
levels: $2059 per m2 (GST inclusive) or $1870 considered at the request of IRG members
per m2 (GST exclusive). to determine whether they would be cost-
effective for the Woodville West site. On
Option 6 the basis of the construction costs versus
Hybrid four storey timber construction with land value, the underbuilding or part
sprinklers and including ICF and lightweight underbuilding car parking was not considered
timber construction: $2060 per m2 (GST as viable as the at-grade car parking option
inclusive) or $1870 per m2 (GST exclusive). because land values at the subject site were
considered less than the cost of under-croft &
Option 7 basement parking. Underbuilding car parking
traditional precast concrete and suspended establishes two grids; the car park grid and
slab: $2267 per m2 (GST inclusive) or $2060 an apartment grid that do not align. Transfer
per m2 (GST exclusive). slabs and/ or beams incur costs that are not
required with the direct load path model in
Option 8
addition to a substantially greater cost per
Brick veneer with structural steel frame and
carpark constructed.
concrete floors: $2344 per m2 (GST inclusive)
or $2130 per m2 (GST exclusive). The provision of at grade parking is a solution
that has been used in a number of other
Alternative options recent private apartment buildings in inner
a) Prefabrication suburban corridor locations in Adelaide,
As part of the consideration of options, further supporting the projects decision
the project team assessed the merits of to use this a basis for comparing costed
prefabricated bathroom pods as a way construction options with the car park at
of reducing onsite construction time and grade.
cost. Based on the selected design it was
determined that such prefabrication did not
provide any advantage:
13. Summary
The project delivers a market-based and
commercially-replicable methodology to
achieve lower construction costs for a four-
storey apartment building than historically
seen in Adelaide.
The project has also revealed a plethora

of new materials and emerging systems
continually coming to market. For the
demonstration project, the ability to
substitute key selected materials offered the
advantage of not being locked in to any one
product, allowing for ease of replacing one
item for another with minimal impact on
documentation.
While this report does not propose a single

solution to every building cost challenge,
it does demonstrate a logical step-by-step
process whereby developers can assess
options in terms of design, material selection,
construction methodology, site influences
and building layout. This methodology can
be applied to the construction of any multi-
storey apartment building.
“SUCCESSFUL PROJECT
MANAGEMENT IS TYPICALLY
A FINE BALANCE BETWEEN
MAKING THE MOST OF PAST
EXPERIENCE WHILE ALLOWING
ROOM FOR FRESH THINKING”
PART A – LESSONS LEARNED

The Lessons Learned section forms part of the suite of documents detailing the Apartment
Construction Cost Demonstration project which include the Research Report & Summary and
Part B – Case Study.
The diagram below outlines the process flow chart of the research and design documentation
phase for the project. It soon became evident during this phase project that achieving the
nominated square metre rate of $1800 to $2000 per metre (inclusive of GST) was an iterative
process involving the builder and design team proposing design and material solutions and the
builder partner then evaluating and costing these against various construction systems. As a
way of moving forward to a final preferred design and construction methodology, the project
team developed the following eight-step process as a logical framework to achieve the project
objectives of ‘right design at the right price’. Each step has a series of actions which deliver
critical information as outlined.
Process flow chart – Research & design documentation phase

Apartment Construction Cost Demonstration Project
a. Commitment to collaborative process
b. Establishing the project success factors

Research and Design Development Phase
c. Implementing a ‘first principles’ approach
d. Determining cost centres
e. Developing the concept design
f. Value engineering
g. Interim Stop / Go Assessment
h. Validating the concept design
Success - project objectives achieved

A. Commitment to collaborative This collaborative approach delivered the

following benefits:
process
^^ Comprehensive and rigorous value
A fundamental principle behind the engineering based on an iterative process
demonstration project was the determination between Studio Nine, Mossop and Renewal
to have a true collaborative partnership SA with guidance from the Industry
from the earliest possible stage between the Reference Group.
design and build teams. From the project
team’s perspective, this commitment to ^^ Access to information and investigation
a collaborative process resulted in the of a wide range of building products and
best possible design outcome at the most construction technologies.
competitive construction price. ^^ Shared learnings in real time between
the design team and the building partner
The experience of Renewal SA, Studio Nine on the most cost-effective construction
and Mossop Construction + Interiors in the approaches and use of materials.
design and documentation stage of the
demonstration project has confirmed the Key lesson
many benefits of collaborating together at
the earliest opportunity in an “open book” Establishing the earliest possible collaboration
partnership. between the design and builder teams is
critical to success.
In the case of the demonstration project,
Renewal SA undertook the following actions B. Establishing the project success
to achieve collaboration:
factors
1. Conduct separate but concurrent
Every project has “a big picture” outcome and
Expression of Interest (EOI) processes to
it is therefore critical to accurately interpret
engage a suitably qualified design team
the brief to fully understand the vision and
and a building partner. The building
key objectives: this close examination will
partner was selected first in order to
reveal the true success factors.
provide input into the selection of the
design team, given that the focus of the For the apartment demonstration project,
demonstration project was achieving a cost the vision was far beyond the numerical EOI
effective construction methodology. parameters such as a four storey apartment
building with 20 dwellings for a construction
2. Established an Industry Reference Group
rate of between $1800 and $2000 per square
to provide high level guidance on aspects
metre (GST Inclusive).
such as ‘build-ability’ of multi-storey
apartment buildings, latest available It was clear the brief was demanding
technology for cost-effective construction construction of a marketable, quality product
and insights into market expectations on – not just a building that achieved the target
apartment products. construction rate and required dwelling yield,
yet failed on liveability and aesthetic criteria.
3. As part of the EOI process, as a mandatory
A further challenge was that the project had
requirement, tenderers had to state
to deliver a commercially repeatable building
whether they would agree to work in a
that did not rely on government subsidy or a
collaborative manner throughout the
premium beachside or CBD location.
project.
4. Another requirement in the EOI process

was for the design team and the building
partner to submit their preferred work
schedule to deliver a truly collaborative
approach. Renewal SA then developed a
final work schedule in agreement with the
design team and the building partner.
Actions C. Implementing a ‘first principles’

Renewal SA undertook the following actions approach
as part of the demonstration project:
Successful project management is typically
1. Early consultation with the Industry a fine balance between making the most of
Reference Group to determine the ‘build- past experience while allowing room for fresh
ability’ of a quality apartment building thinking. In the case of the demonstration
at the nominated construction rate of project, Renewal SA had engaged two
$1800 to $2000 per square metre (GST experienced and highly capable teams in
Inclusive). The IRG’s advice – adopted by Studio Nine and Mossop. The challenge was
the project team – was that the rate was to benefit from their prior experience in
achievable for a four-storey development multi-level building design and construction
of 20 dwellings as industry experience without being constrained from investigating
had already demonstrated that a three- new materials and alternative construction
storey building could be built in this price methodologies.
range.
Critical to the first principles approach is the
2. Continually referring to statutory following behaviour: not to make assumptions
requirements around the Building Code and rely too much on previous experience.
of Australia and the local Development It is important to keep an open mind and
Plan (which in this case was the City of think flexibly about selecting personnel,
Charles Sturt – Woodville West Policy construction systems and materials.
Area) to ensure the evolving design met
The challenge of the project was to
both the brief and these planning criteria.
construct a quality apartment building that
3. An early decision by Renewal SA, Studio would enable the sale of apartments at an
Nine and Mossop to refer to the existing affordable price points in the high $200,000s
NSW apartment design code (SEPP 65) to low $300,000s whilst still provide a
which provided invaluable advice on commercial return on investment. The more
such aspects as sustainability, liveability, typical development scenario is to identify
economic use of space and accessibility. a particular market segment or location to
maximise return and not base the entire
4. Notwithstanding the above point, the project on achieving affordable price points.
project team adopted a ‘first principles’ As a consequence the project team adopted
approach to design to ensure complete a first principles approach to meet the
alignment with the brief and the final challenge.
outcome.
Actions
Benefits:
Renewal SA undertook the following actions
Renewal SA experienced the following as part of the demonstration project:
benefits for the demonstration project by
undertaking the above actions: 1. Given the affordable price point for each
apartment (which for this project was
^^ The final design fully addresses the brief a range from the high $200,000s to low
and delivers on the project’s success $300,000s) work backwards to determine
factors and vision. the target square metre construction rate
to ensure a commercially viable project
Key lesson
2. Selecting suitably experienced and
Once you have agreed your project success qualified design and building partner
factors, document them and provide to every
team member as a continual reminder of the 3. Provide key design and project objective
big picture. criteria to the consultants as a basis for a
detailed brief
4. Appreciate the need to investigate

the main costs centres of apartment
construction.
5. Accurately determine current market price D. Determining cost centres

points and purchaser expectations instead
of relying on past or anecdotal information Consistent with the ‘first principles’ approach
outlined previously, the project team
6. Identify the minimum design areas for the researched existing apartment building
apartment building that meet acceptable projects throughout Australia that offered
liveable criteria and market demands. potential insights that could be applied
to the demonstration project; assessed
Benefits new materials available on the market;
Renewal SA experienced the following and carefully considered the key drivers
benefits for the demonstration project by of construction cost saving. Based on the
undertaking the above actions: building partner’s previous experiences
of similar projects, a ‘cost centre’ list was
^^ A meaningful target for return on established detailing the percentage each
investment building element is of total construction cost
^^ Reducing project risk and maximising (refer below).
project outcomes by having the most Identification of ‘big ticket items’ enabled the
appropriate personnel design team to quickly target areas where it
^^ A complete understanding of the key was thought the greatest potential savings
cost drivers to be targeted in the value could be made.
engineering phase
^^ Delivery of a completed apartment Based on advice from Mossop in relation to
building at the “right price” (construction four and five storey apartment building, it was
costs and retail price points) and the “right determined that construction costs account
design” (a quality, aesthetically pleasing for about 65% of the cost with the remaining
apartment which is a desirable place to 35% comprising land, design consultants’ fees,
live). civil works, holding costs, landscaping and
marketing.
Key lesson As some two-thirds of costs relate to
Start with a blank sheet of paper and don’t construction, the project team resolved to
approach the task in a certain way because focus on the following construction-cost
“that’s the way its always been done”. drivers as a focus for future cost reduction
effort:
^^ Floor and support systems 10-14%;

^^ External wall systems 9-12%;
^^ Preliminaries 7-9%;
^^ Internal walls 7-8%;
^^ Plumbing and sanitary ware 6-7%;
^^ Electrical 5-8%;and
^^ Substructure 4-5%.
Considering the above cost centres, the

project team spent significant time in
assessing floor and wall systems as these
had the potential to deliver the biggest cost
savings. In all, around 30 floor, wall and
cladding systems were evaluated by the
project team.
It is important to note that these construction

cost ‘hot spots’ will vary from one building
project to another: so one of the key
messages from this project is the value in
identifying the cost centres with a view to
then concentrating effort where the greatest
savings are likely to be made.
Visual 4: First principle concepts

Actions Benefits
Renewal SA undertook the following actions Renewal SA experienced the following
as part of the demonstration project: benefits for the demonstration project by
undertaking the above actions:
1. Determine development and design cost
centres (with an initial focus on floor and ^^ Meaningful preliminary cost estimate
wall prices and rates as these typically ^^ A concept design that is capable of
represent 30% of construction cost). delivering on the success factors
2. Reducing building waste by standardisation ^^ Ability to lodge for planning approval at
and ‘de-materialisation’ (reducing material concept design stage
layers by selecting materials with multiple ^^ Provides the opportunity to investigate
uses) strategies. and discover innovation.
3. Workshops to evaluate materials and Key Lesson

construction systems.
Accurately determine the true cost of each
4. Work on the basis that the design process building element and focus on those elements
is an iterative one. where maximum savings can be achieved.
5. Value engineering as an iterative process of
cost management and outcome-focussed
design.
Visual 5: Sample of cost centres

E. Developing the concept design Actions

Given the approach and considerations so Renewal SA undertook the following actions
far, at this point the concept design should as part of the demonstration project:
start to take shape. This brings together the
1. Analyse the site to deliver maximum site
information derived from the previous steps:
efficiency for building and car park layout
^^ Commitment to a collaborative process
2. Modular layout with straight and aligned
^^ Establishing the project success factors walls on a grid pattern
^^ Implementing a first principles approach
3. Maximise direct load paths to avoid
^^ Determining cost centres
secondary framing
Good design outcomes are the result of
4. Co-location of services to allow floors to
exploring different options. This includes
be easily stacked
the importance of considering site specific
variables - site location and configuration 5. Smaller spans of around 3 metres to allow
influencing site efficiency; the area of land a wider choice of materials
necessary to accommodate the building,
carpark and open space requirements; 6. Produce floor plan concepts in
permissible heights and boundary setbacks preparation for planning application
in accordance with council development lodgement
plans; proximity of any significant trees; how
water pressure and flow could impact fire 7. Designing consistent configuration of
equipment & safety. All of these will impact bedrooms, bathrooms and kitchens on all
the design and ultimately the cost. floor plates
The process of design was also an iterative 8. Ensure rooms are designed with access to
process of research into material selection natural ventilation (windows) and doors
and construction methodology. This approach that make the most of direct light and
delivered two important outcomes: fresh air
^^ fficiency
E 9. Ensure a dematerialisation strategy is
efficient simple floorplans eliminating adopted to reduce excessive layering of
wasted space minimises building area and materials throughout the design
allows ‘stack-ability’ of floors to achieve 10. Investigating prefabrication options as
vertical load paths and service runs. a way of reducing on-site construction
^^ Standardisation costs.
reduces the risk of human error during
construction (and therefore cost) making Benefits:
construction easily replicated. Renewal SA experienced the following
Industry experience typically shows that benefits for the demonstration project by
30% of all construction materials delivered undertaking the above actions:
to site are wasted due to non-standardised ^^ Up to 30% reduction in building waste
design and units of material or construction delivering significant cost savings
systems. Using Mossop’s understanding (materials, labour and waste disposal) as
of construction and Studio Nine’s design well as environmental benefits
expertise, a key learning of the project was
^^ Modular sizing leads to cost savings
the need for an iterative process to determine
through reduced labour and waste
the most cost-effective design and building
solution. ^^ Highly efficient design.
Key Lesson
Avoid being “blinded” by the detail and always
find the solution that delivers the big picture.
Visual 6: Concept workings

F. Value engineering 2. Ensuring an appropriate timing for a ‘stop/

go’ decision on whether the project will
A key principle of the apartment meet its success factors – typically when
demonstration project was for the builder the wall and flooring systems have been
and design team partners to actively costed. This ‘stop/go’ decision will be
collaborate throughout the research and informed by a preliminary estimate of the
design development phase. This participation square metre construction rate.
required each partner to operate in a joint
‘open book’ work-up of construction costs to 3. The lateral and vertical alignment of walls,
determine trade package breakdown costs. if possible, to reduce eccentric loading of
beams and other structural elements.
In practical terms, this meant that once the
preliminary concept was drafted by Studio 4. Creating visual interest through set-backs
Nine, it was then given to Mossop to analyse and projections of the facade.
from a ‘build-ability’ and cost perspective.
5. Achieving standard dimensions of
Mossop began this process by evaluating the
bedroom and bathroom layouts to
proposed superstructure (comprising walls
minimise construction errors.
and floors) then advanced to more detailed
aspects such as interior layouts, efficient co- 6. Ensuring the most sensible configuration
location of services, building management of parking bays and vehicular access to
systems (such as waste management) and maximise site efficiency (where at-grade
internal and external finishes (including car parking is provided).
appliances and equipment).
Benefits:
The project team found that the best way
of achieving value engineering was to Renewal SA experienced the following
collaborate in the following manner: benefits for the demonstration project by
undertaking the above actions:
^^ Identify areas to be targeted for cost
savings in the design and layout of the ^^ The most efficient design from a
building including but not limited to: construction cost perspective
building layout; individual apartment ^^ Confirmation of the most appropriate
layout; minimising void areas; choice of materials for construction from a cost,
materials, construction methodologies and durability and aesthetics perspective
practices; building services layout; at-grade
^^ Minimisation of material wastage and cost
car park design; and compliance with
by reducing onsite construction and labour
relevant statutory requirements.
times
^^ These desktop savings were then used to
^^ Highly efficient integration of building
prepare detailed design.
services with reduced pipe runs
^^ As each level of detailed design was
^^ Lower building lifecycle costs for building
progressed they were further examined
owners and tenants.
and reviewed for potential additional
savings based on “buildability” and
Key Lesson
efficiency.
^^ This leads to final design and Start and continue with an open mind always
documentation to enable full market reviewing options and the design for building
costing of construction-ready drawings. efficiency and savings.
Actions:
as part of the demonstration project, in an
iterative process, whereby the builder and
design team continually reviewed the evolving
building design with a focus on:
1. Value engineering of all major elements

of the design including wall and flooring
systems, external site works, building
services, external and internal finishes and
building management.
Visual 7: Iterative process examples

G. Interim Stop / Go Assessment 3. Careful selection of an appropriate level

of finishes to ensure a market-responsive
The purpose of the interim stop/go design
assessment is for the project team to critically
address the following question: are we on the 4. Regular assessment of the proposed
right track to meet our success factors? construction methodology and materials
selection against the target construction
This question is much broader than simply square metre rate.
meeting the target construction square metre
rate: it also captures the overall viability and 5. Ensure any financial calculations take into
marketability of the project. Importantly, even account the impact of GST.
at this stage of the design documentation
process, it is still not too late to make Benefits
significant changes in core elements such as Renewal SA experienced the following
wall and flooring system selection. benefits for the demonstration project by
As part of the value engineering process to undertaking the above actions:
deliver a market-responsive and commercially ^^ To give confidence in making a decisions
repeatable building, selection of the to proceed with the project in its current
appropriate level and standard of internal configuration, or whether it needs to be
finishes and appliances are also critical. modified or even abandoned.
Actions ^^ To provide confirmation of the project’s
commercial viability.
Renewal SA undertook the following actions, ^^ The end product is of an appropriate
to inform a ‘stop/go’ assessment, as part of standard for the target market.
the demonstration project:
^^ To achieve the project success factors.
1. Thoroughly investigating the project’s
marketability by such actions as seeking Key lesson
market feedback from selling agents on Make sure the design and costs are absolutely
retail price points and comparing features aligned to the project objectives and is market
of similar development. responsive.
2. Continually cross-checking each element
of the project against the previously-
determined success factors.
Visual 8: Elevation – the right design

H. Validating the design concept Benefits

Having determined that the project will Renewal SA experienced the following
proceed following the interim stop/go benefits for the demonstration project by
step, the final stage is to complete full undertaking the above actions:
documentation and tendering of the
construction-ready design. This is typically the ^^ Ability to meet the target construction
most time-consuming and labour-intensive square metre rate and other success
part of the entire design process. factors
^^ Maximises design quality
In the case of the apartment demonstration ^^ Serves as a final stop/go assessment prior
project, Mossop continued to liaise and to construction.
investigate opportunities with potential
suppliers to find additional cost savings Key Lesson
in the preferred design and construction
methodology. Once documents were Even late in the design and tendering process,
completed by the design team, the builder be willing to substitute a particular product
tendered out to and received over a 100 trade with another of similar or better performance
packages to verify that the target square characteristics.
metre rate would be achieved. Throughout
this process, the design was adjusted
to remove superfluous items without
compromising on aesthetic appeal and
market requirements, or structural integrity,
or affecting planning approval.
A key learning for the project team was to

resist the temptation to be reliant on any one
product, it is important to remain flexible
in thinking so as to be able to substitute a
particular product (or system) with another
of similar and potentially better performance
characteristics and cost benefits.
Actions
To ensure the design concept was validated,
as part of the demonstration project:
1. The design team was commissioned

to produce fully detailed design
documentation including all drawings and
specifications.
2. There was collaboration with the builder

to ensure key finishes and equipment
selections and all other building elements
were consistent in quality and quantity
with previous budget estimates.
3. Conducted an adequate tender process to

encourage competition among suppliers to
deliver the best price.
“PROVIDE AN OPTIMUM
TURN-KEY PACKAGE FOR
RESIDENTS WITH STRATEGIES
TO PROVIDE A HIGH DEGREE
OF DAY-TO-DAY AMENITY
COUPLED WITH ‘HIP POCKET’
CONSIDERATIONS”
PART B – CASE STUDY

Introduction The brief
The Case Study forms part of the suite The brief called for a ‘turn-key’ apartment
of documents detailing the Apartment building providing 20 apartments of four
Construction Cost Demonstration project storeys, offering housing variety and
which include The Research Report Summary market appeal. The four storey height was
and Part A - Lessons Learned. nominated by the Industry Reference Group
as it fits within the relevant Woodville West
This Case Study covers the following topics: development plan and is a height that
involves financial, BCA and construction
1. The brief, the turnkey objectives and
challenges that lower scale buildings would
market responsiveness of the design
not. As such, the nominated building height
2. The process of materials and construction of four storeys was seen as being better
systems research suited to the objectives of the demonstration
project than a three-storey development.
3. The iterative design process undertaken
The design team responded with a
4. The process of select preferred 20-apartment four-storey building offering
construction systems and comparing costs a range of accommodation with at-grade
based on rates and a value engineering parking and storage spaces.
approach
Under-croft and part under-croft car parking
5. Comparison of the final eight options options were considered.
including market testing on tendered
documentation and preliminary costed Underbuilding car parking establishes two
options grids; the car park grid and an apartment
grid that do not coincide. Transfer slabs and/
6. A discussion on the statutory, building or beams incur costs that are not required
servicing and building management with the direct load path model. On the basis
considerations as part of the decisions of the construction costs versus land value,
forming the final design the underbuilding or part underbuilding car
parking was not adopted as the at-grade
7. Conclusion
car parking provided the optimal financial
performance for the project.
The market brief for product mix of one

and two bedroom apartments (with study
variants) has been achieved. The efficient uses
of space have been the key drivers and have
resulted in functional and liveable apartments
with pleasant spatial flows, yet on or below
the briefed areas.
Type Floor areas (excl. Balcony Quantity Apartment / Indicative retail

balconies) m2 areas m2 bedroom mix pricing
1 bed 54.2 12 2 10% From $265,000
1 bed + study 69.7 12 2 10% $310,000 – $320,00
2 bed 64.2 to 70.26 12 12 40% $315,000 -$330,000
2 bed + study 69.7 to 71.6 12 4 40% $325,000- $342,000
Total 20 100% -
Table 2: Product mix & pricing
The turn key objectives 7. Balconies as an extension of the living

areas - providing a useful space with the
Aiming to provide an ‘affordable product,’ capacity to be an outdoor room.
should not translate into the building being
‘cheap.’ The team’s aim was to provide an 8. Aesthetically pleasing, quality appliances,
optimum turn-key package for residents interior fixtures, fittings and finishes.
with strategies to provide a high degree of
9. An appliance provision and specification
day-to-day amenity coupled with ‘hip pocket’
to exceed expectations beyond the price
considerations.
point.
To create appeal, the points of difference
10. Strategies to minimise energy use have
include the following consideration:
incorporated to benefit the end user.
1. The architecture whilst stylish has
11. Step level entries.
durable long life-cycle finishes specified
to minimise ongoing cost impacts on the 12. Crime prevention through environmental
corporation’s ‘sinking fund’. design (CPTED) principles at work with
passive surveillance, intercom-operated
2. The architectural design considers
main entry doors.
function, spatial efficiency and visual
flows to enhance each apartments ‘feel’ 13. Effective cross ventilation is enabled
and scale. through design considerations.
3. The building fabric contains ‘mass’ that 14. Efficient and effective air-conditioning is
translates into positive thermal and specified.
acoustic properties.
15. All bedrooms to have access to natural
4. Lowered living costs due to light and ventilation. Ceiling fans have
environmentally-sustainable design been specified for each bedroom.
features such as solar access, good
cross ventilation, high level of thermal 16. Apartments are NBN ready.
performance and durable materials
(requiring less maintenance costs). 17. Lighting levels have been designed for
functional output with quality LED lighting
5. Provide a pleasant entry and one with fittings.
(preferably) some outlook or exposure to
an interesting room; avoid looking into 18. Each apartment comes with undercover
toilets or laundry spaces. parking (car ports).
6. To provide apartments with a market The end result delivers on the promise of
value proposition that translates into above and beyond the ‘typical’ offering.
efficient, useful, liveable spaces and good-
sized rooms and avoids long (wasteful)
corridor spaces.
Diagram 1: site orientation

Diagram 2: ground floor plan
Marketability provided feedback on the design and market

expectation. The feedback and comments
For affordable housing solutions to be have been integrated into the design.
successful, the design needs be tailored
to market demand and expectation. To For reference, the demonstration project
test the assumptions of the design team, bases ‘Affordable Housing Price Points’ on the
marketing advisors were consulted and State Government Affordable Homes Program
guidelines – see appendix for more detail.
Visual 9: rear perspective

Research and Design: System and technology investigations

The Process not the Solution The research and design phase saw the
exploration of numerous new building
Rather than assume a solution based on
systems and technologies. Renewal SA,
default experiences, the derived answers are
Mossop and Studio Nine gathered data on
the product of an exploration exercise and
systems and conducted information sharing
the attitude of the project team partners.
workshops.
This response acknowledges and addresses
the importance of the impact of site variables Materials Matrix Sheet
on a project. Site location and configuration
influences site efficiency and the area of land As part of its research process for the
necessary; council development plan building demonstration project, Studio Nine
heights and boundary offset controls; the established the materials matrix spreadsheet
proximity of a significant tree (even though of new and/or materials of interest as an
on an adjoining site) could impact on land internal working document, capturing
use; water flows and pressure impact on fire information under functional headings such
management and may drive the selection of as wall materials, floor materials/systems,
construction types. claddings and other products.
This case study aims to demonstrate the A ‘live version’ matrix was established for
variables that impacted on the demonstration team use throughout the research and
site and outlines the responses to those presentation phase as it provided a method of
forces. capturing continually emerging new systems
and materials.
The key outcomes and lessons learned are
from the process and the assessment of The matrix detailed:
each item, resulting in selections based on
strengths and avoiding the obvious trends or 1. material description and photographs
myths.
2. supplementary building materials (fire
For example for the demonstration project, protection requirements, vapour barriers
the project team found that: etc.)
^^ ‘CLT offers phenomenal properties and 3. structural capabilities/ serviceability,

is lightweight and quickly erected’ - yet optimum spans & durability
under examination it was found for the
4. physical properties, (thermal properties,
demonstration project to be not suited
fire resistance, acoustic attenuation,
to a building of this relatively small scale,
vapour permeability etc.)
whereas every day lightweight timber
framing has the potential for a cost 5. supply chain (country of origin and point of
effective solution. (The suppler of CLT supply)
advised the design team that it becomes
cost effective in higher rising buildings of 6. on site management (lifting equipment,
70 to 80 apartments). speed of erection, fixing techniques, trade
skills)
^^ ‘Precast concrete is too expensive’ - yet
we found the market condition during 7. perceived services implications
the research phase such that precast was 8. indicative (relative) costs.
being delivered at exceptionally good and
cost effective rates. Site visits
In this highly collaborative process, the Following the initial desktop and workshop
partners’ best strengths and knowledge evaluations (assessing benefits including value
were used to review and assess the options and technical properties), the team compiled
in a series of workshops, deriving possible an invitation list of industry suppliers to
solutions from first principles. present their products. In collaboration with
Mossop, the materials and systems were
short listed by Studio Nine and suppliers
were invited to present in sessions which
were held throughout the research phase.
The material matrix continued its evolution We found that for the purposes of
during the rounds of presentations and undertaking the demonstration project,
supply of documentation. when assessing the properties of innovative
materials and systems, it was important to
Studio Nine began basic schematics understand that they can often require an
towards the end of the presentation series alternative solution assessment (under BCA)
to determine site constraints on building that amplifies the above considerations.
proportions as well as considering logical Our assessment factored in on-site skill
layouts and assessing the symbiotic benefits requirements, cost implications of specialist
and opportunities of the various materials professional and/or trade knowledge,
and systems. professional fees needed to manage an
alternative approvals process, as well as the
In collaboration with the project team, the
time delays and holding costs of extended
schematics were examined and refined in an
approval timelines and the impact on the
iterative manner in accordance with the key
construction times and preliminaries.
objectives outlined in the design methodology
and against the target construction rate. The elements of success lie in starting
with and maintaining an open mind and
Construction techniques and material thinking through the various options – simple
assessments approaches can often be overlooked.
For the demonstration project, the Cost Variables
construction techniques/ material
assessments included: The cost variables identified included:
1. Exploring not only the strengths, but ^^ time on site
also the weaknesses such as the time ^^ modulation/standardisation to assist trade
and materiality required in lightweight certainty to minimise delay due to error
timber framing of connection techniques
^^ off-site time gains with prefabrication
to achieve rigid and fire resistant joints
(where failure usually begins). ^^ simplification of form and structure
^^ acknowledging the key strategic alliance
2. Imagining innovative design is possible by between builder and supplier.
using every day readily available materials.
3. Determining the range of additional

Other key considerations
materials or systems required for technical Other key considerations included:
performance to be achieved and their
impact upon construction programs and ^^ rise to the challenge of providing a durable,
budgets. cost effective and innovative solution.
^^ actively looking outside the team’s comfort
4. Integration and combination of both
zone of tried and tested solutions by
domestic and commercial construction
seeking innovative answers worthy of a
techniques for construction simplicity and
economic benefit.
^^ assessing market forces on materials as
5. Creating pods and/or building item often material costs are driven (up) by
replication for economy and with minimal demand. The aim was to avoid a high
structural change, providing each with cycle, yet provide a building solution fluid
character. enough to adapt to changing market
forces.
6. Not automatically assuming that one
^^ lowering life cycle costs by balancing
structural / construction system is superior
cost and durability to deliver a building
to another, as all buildings have differing
requiring the least financial and material-
objectives and site constraints, as do the
intensive maintenance program to
strengths and preferences of individual
residents.
contractors. An understanding of these
factors is required for clear assessment. ^^ having the ability to substitute materials
and/or systems to avoid the vulnerability
7. Assessing the market appeal including of being ‘locked in’ in cases of non-
streetscape contribution, identity, spatial performance, bankruptcy, increased
and volumetric dynamics. workload due to demand etc.
Cost Reduction Approach Cost Centres

Throughout this phase of the demonstration Based on the building partner’s previous
project, effort was focussed around the experiences in similar projects, a cost centre
following four broad themes: was established detailing the percentage each
building element is of total construction cost.
Design The identification of ‘big ticket items’ enabled
the design team to quickly target areas where
^^ Innovative: clever layout and use of space, it was thought the greatest potential savings
orientation benefits could be made. A detailed breakdown list of
^^ Sustainable: reduce material/energy the buildings cost centres that were identified
demand and requirement can be seen in Appendix 7 of this report.
^^ Constructability: ease of construction,
assembly, interfacing The design process
^^ Replicable: modular concepts, readily The building design overlapped the tail end
available technology. of the research phase and was a natural
movement of the collaborative workshops.
Cost The schematic proposal is a direct response
^^ Cost centres: identify high impact cost to the brief and was both driven by and
centres, market test options informed the research program.
Modular: ease of measurement, use of
^^
materials, less waste

Design Methodology:
^^ Materials: check a wide range of options, The solution approach
ease of use, durable
The project team adopted the clearly defined
^^ Labour: less on-site labour and manual strategies and outcomes contained in the
handling, safety New South Wales’ State Environmental
^^ Time effective: reduced on-site activities, Planning Policy 65 – Design Quality of Residential
less prelims, less hire. Flat Development (SEPP 65). Key items relevant
to the apartment demonstration project were:
Program:
^^ local context (such as surrounding building
^^ Off-site works: maximise off site form);
fabrication, storage, assembly time ^^ design for resident amenity in the form
^^ Prelims: less time on-site reduces prelims, of access to natural light and cross
supervision, hire charges for plant and ventilation;
utilities ^^ passive surveillance with ground floor
^^ Labour: reduced labour on site reduces apartments having direct access to the
utilities, consumables injury chances and street as well as a 400mm elevation above
safety provisions ground line to enable passive surveillance
^^ Equipment hire: clever packaging and of the street yet deliver privacy to ground
scheduling may reduce plant and floor inhabitants.
equipment hire periods.
Operational efficiency:
^^ Less operational costs: selection of
technology to suit both construction
efficiency and to reduce ongoing demand
on energy.
^^ Less maintenance: selection of
materials that reduces need for periodic
maintenance and upkeep.
^^ Durable: good quality materials and
fixtures that has long life and does not
require frequent replacing.
Diagram 3: typical apartment layouts
Simplification Standardisation
For the demonstration project, it was found For the demonstration project, it was found
that the key element of the design process that modularised/ standardised design
has resulted in a process of simplification to facilitates trade certainty and eliminates
arrive at: wastage through error. More poignantly, this
facilitates the emerging potential for off-site
1. Efficient, simple floor plans eliminating pre-fabrication, minimises on-site times, the
nooks and crannies or wasted space within reduction of site risk and accidents, and the
a tight envelope that minimises building reduction of neighbourhood congestion. This
area. has resulted in:
2. Building is stacked for the structural 1. all bedrooms having the same foot print
simplicity of vertical load transfer and
services. 2. all bathroom and laundry combinations
being the same with consideration of
3. Apartment layouts and arrangements locally-sourced factory construction
where in acoustic transfers between areas
is managed through location rather than 3. living areas being the same dimension
the use of materials.
4. co-location of bathrooms, laundries and
4. Circulation/ corridor spaces being kitchens to facilitate simple efficient riser
functional, semi-enclosed spaces to locations
minimise areas and the materials used.
5. kitchen configurations being the same.
Sustainability Recycled materials were incorporated to

reduce the building’s resource and carbon
To improve sustainability, building materials footprint. Materials include recycled
were selected not only on a value-for- timber and a reusable plastic formwork
money basis but also durability to minimise manufactured from recycled materials, and
maintenance costs to the body corporate other ICF reform proposed for lift shafts and
(ultimately residents over the life of the stairwells.
building).
Industry experience shows that about 30% of
The building has been designed to achieve a building materials become waste due to over-
6-star energy rating based on NatHERS (The ordering and on-site error. To reduce waste,
Nationwide House Energy Rating Scheme). modularised/ standardised apartment layouts
were adopted, as it:
Solar orientation and cross ventilation were
addressed in the following manner: ^^ simplifies take-offs, material ordering etc.
to reduce over-ordering;
^^ window and deck orientation for four of
^^ minimises the chance for error, material
the five north-facing living area windows
waste and on-site times;
and/or outdoor living areas.
^^ reduces waste in areas such as carpet
^^ open circulation spaces to provide for
sizing by having room designs based on
cross-ventilation.
material modules.
^^ security screen doors on apartments
to assist cross ventilation (optional
installation only).
De-materialisation strategy
As part of the design process for the
demonstration project, reducing material
layers was adopted as a way of reducing
construction costs. This ‘de-materialisation’
strategy comprised:
^^ adopting a ‘squarish’ building form to

minimise the extent of external walls
(other than a sphere, a cube is the most
efficient building container); Visual 10: developing sustainable outcomes
^^ avoiding indentations (for articulation)
to reduce building material and building
complexity;
^^ using materials that do not require
coatings (and subsequent re-coating) such
as off-form concrete and galvanised steel;
^^ ensuring that integral parts of the building
(such as walls) are the load bearing
elements to avoid secondary framing;
^^ incorporating continuous and minimised
spans to provide a wider choice of
materials as well as efficient and effective
usage;
^^ minimising the material required to
manage sound transfer by co-locating
kitchens and bathrooms; and
^^ designing partially open semi-public
spaces.
Social Sustainability Shortlisting construction options

Amenity issues include: For the demonstration project, we have
established the research of materials
^^ identity (“that is my apartment there”) has and systems process, including materials
impact on built form; matrix, workshops and preliminary concept
^^ thresholds signifying the interface of public designing. In some instances to better
to semi-private (of the entry experience). understand the product offerings, site visits
When entering the building, the common were undertaken to prefabrication plants or
spaces are transparent, paths are easily to see materials in use. A summary of site
navigated and people feel safe. Those visits and workshops are evident in Appendix
spaces will be treated like undercover 10. To round out the selection process,
verandas; Mossop undertook the costing of the most
^^ the semi-private to private door way appropriate materials and techniques.
providing identity for each apartment;
^^ then into the private spaces on entering Iterative process and value engineering
apartments, visitors are presented with a The combination of materials and
borrowed view through a window beyond, construction systems investigated in light of
not a toilet door; and the project objectives required the builder to
^^ apartments being raised to afford privacy eventually ‘select’ a number of key elements
from the street, yet living areas are to commence initial estimates. As with the
provided with a clear view of the public design being improved over a number of
realm. iterations of refinement, the process of the
ultimate option also required a series of
Place making, wherein encounter points have attempts and was dependent on market
been considered: forces in as much as any pure innovation
^^ the letter box; yielding a stand-out in cost savings.
^^ the circulation spaces and the potential for Superstructure construction - walls and floors
occasional seating; and
^^ bike hanging spaces for residents in the Led by Mossop’s, the point of focus for
circulation space/ foyer areas. the project team of consultants for the
preliminary costing was walls and flooring
Other social strategies include the option for (the superstructure). This framework of the
each apartment to be fitted with a screen building making up a significant proportion
door (for ventilation) and for residents to hear of total cost (typically 30% in a multi-storey
what is happening in the semi-public spaces apartment building).
to:
Walls
^^ promote a sense of community awareness;
^^ improve safety arising out of the passive For the demonstration project the following
(audile) surveillance of the semi-private elements are examples of systems compared
spaces. to derive the costed options and included
possible increases for offloading and
Confirming a preliminary design concept installation and fireproofing:
As part of the research and design ^^ Insulated concrete form, permanent

documentation phase for the demonstration polymer formwork (concrete infill
project, the preliminary design was set formwork products);
and agreed. Using this design as a basis to ^^ Lightweight sandwich panels (fibre cement
snapshot the gross building area, building sheet and steel stud frames core filled with
heights, and site requirements then enabled concrete);
the Mossop to initiate preliminary cost ^^ Pre-cast concrete;
estimates.
^^ Various forms of manufactured dry-wall
sheeting (such as compressed fibre cement
sheet products) and Autoclaved Aerated
Concrete (AAC) wall types;
^^ Recycled industrial waste based masonry; The square metre rates of these items were
^^ Engineered wood systems, such as Cross also compared including dependence of the
Laminated Timber (CLT); following additional cost considerations:
^^ Structural Insulated Panels (SIPS) ^^ Concrete supply, reo supply, crane hire (lift
technology. reo), concrete labour, and concrete pump.
The square metre rates of these items were Similarly, the builder partner worked with the
compared including dependence of the structural engineer and architect to review
following additional cost considerations: the issues associated with each system.
Such considerations centred around wall
^^ Internal plasterboard lining;
thicknesses, load, span, and fire rating level
^^ External finishes – render and/or paint; achieved, and constructability.
^^ Steel cast in plates for support;
^^ Scaffold and edge protection Commitment to detailed design
requirements;
For the demonstration project, using the
^^ Internal wall insulation / acoustics. preliminary concept design, the learnings of
the materials research and above systems
Mossop worked in conjunction with the
pricing, Mossop was able to compare various
structural engineer and across the design
construction options to building the 4 storey
team consultants as a whole to review the
apartment building. This process allowed
issues associated with each system, weighing
the project team to determine if the design
up cost and design functions.
and project was on track to meet the target
construction rate. In addition, updated market
Floors
appraisals were undertaken to assess the
For the demonstration project, the following apartment prices.
elements are examples of the systems
An important juncture was to ensure two
compared to derive the costed options and
things: the target construction square metre
included possible increases for offloading and
rate could be achieved and the apartment
installation and fire proofing:
pricing was in line with the forecasts. On
^^ Traditional in-situ reinforced suspended completion of this preliminary feasibility
slab; based on this ‘stop / go’ approach, the project
^^ Post tensioned reinforced concrete slab; could then move into the full detailed design
documentation, undertaken by Studio Nine.
^^ Precast concrete beam system coupled This process helps to validate the commercial
with steel formwork and in-situ slab; viability of the project.
^^ Hollow core precast concrete slabs or
planking with topping; The full documentation phase brought
^^ A reduced weight concrete floor system together all the marketing, services and
comprising of a thin precast concrete panel building management and construction
with a void forming layer of reinforcing and research to ensure “the right design for the
hollow plastic balls and topped on site; right price”. This was ultimately tested when
Mossop tendered the building. The tender,
^^ Hybrid suspended flooring with steel joists managed wholly by Mossop, sought prices
and thin slab; from over 100 trades across the different
^^ Engineered lightweight cassette system disciplines. As a matter of course, suppliers
using a composite timber flanged and steel pricing may be subject to change over time,
webbed joist, engineered sheet flooring and the estimation of quantities from a
and fire rated linings; preliminary design to a detailed design can
^^ Reinforced autoclaved aerated concrete and did influence the final cost.
panels;
On this project, a number of factors affected
^^ Engineered sheet flooring over framing the preliminary cost per square metre rate on
joists being either LVL or a composite having moved from the preliminary concepts
timber flanged and steel webbed. to full documentation design. This required a
systematic review of the design and building
specification. Issues arising were as follows:
^^ Nominal increase in the gross building area The options are summarised below, beginning
as a result of transitioning from concept to with the final preferred option.
detailed design for the basis of estimation
of costs. It is important to note that depending
on market conditions and supplier
^^ Changes to pricing from the preliminary relationships, pricing can vary. The most
concepts to final tender pricing, requiring cost effective system will depend on the
the substitution of product selection for Developer’s specific apartment design. For
major structural elements; the demonstration project the ability to
substitute key selected materials offered the
^^ Architectural and engineering selections of advantage of not being locked in to any one
finishes, products and equipment, such as: product, allowing for ease of replacing one
^^ deletion of louvre and posts from item for another with minimal impact on
balconies; documentation.
^^ internal stud wall replaced with
structurally insulated panels (SIPs); The Preferred Option

^^ balustrading change from glass to The preferred construction system for the
perforated aluminium; demonstration project as determined by the
^^ deletion of screen doors from standard project team is outlined below. It delivered on
design; key project objectives of buildability and de-
^^ sanitary ware changes;
materialisation. The details of this system are
as follows:
^^ lift equipment size changed;
^^ scaffolding adjustments; 1. Insulated concrete form walling

^^ amended external fencing construction
and concrete precast plank flooring.
including bin enclosure from brick and Rate $1974 per m2 GST inclusive ($1795 per m2
insulated concrete form to a metal GST exclusive) for the demonstration project
sheet fence (and paint finish); and comprising the following:
^^ removed bored piers for perimeter ^^ External and single occupancy unit (SOU)
fence and replaced with concrete bounding walls (party and corridor) - an ICF
retaining wall. system provided;
^^ a load bearing system
These proposed changes resulted in real
savings of the final building cost. ^^ the necessary fire separation
^^ acoustic ratings
This outcome demonstrates the material
substitution advantages in not being ^^ looring system - a precast concrete
F
locked in to any one product, thereby easily system provided;
substituting a material with minimal impact
^^ beneficial long spans
on documentation. This is a result of a
^^ structural and acoustic properties
thorough design process and collaboration
between the design and builder teams - a ^^ thinnest slab with a standard ceiling
fundamental principle of the apartment (300mm total depth)

^^ Internal walls – partition style non-load
bearing and non-rated.
Construction options
Led by Mossop the preferred construction Buildability
methodology was determined following the
For the demonstration project, the insulated
evaluation of a wide range of material and
concrete form products tendered to deliver
construction systems. These were assessed
cost savings with flexible composition and
on availability, buildability and cost with more
corner installation.
expensive options not considered further.
This option met many of the de-materialisation
As part of this process, estimated costs
strategies in that it delivers the lowest floor to
were derived for eight options based on the
floor height to reduce overall building height;
final design. Using the criteria of availability,
it satisfies BCA fire and acoustic requirements
buildability and cost, the top three performing
without additional materials; and the
options were market tested by Mossop which
proposed external wall system provided
conducted a tender process based on fully
the most cost effective outer skin.
documented drawings and specification.
Diagram 4: Construction planning for tender – ICF layout & section example
Other options considered ^^ flooring system - a precast concrete

cassette system;
The cost analysis becomes more favourable ^^ thinnest slab with a standard ceiling
when the carpark and landscaping costs (300mm total depth);
of the development are excluded from the
^^ internal walls – partition style non-load
overall building cost, reducing the rate to
bearing and non-rated.
$1870 per m2 (GST inclusive) or $1700 per m2
(GST exclusive) for the demonstration project:
Buildability
These two options were also market tested,
For the demonstration project, ICF concrete
based on fully documented designs:
walls and the concrete precast floor cassettes
2. Insulation Concrete Form walling and option, as with option 1, was found to meet
concrete precast plank flooring (same as many of the de-materialisation strategies
option 1 but using alternative products). in that it delivers the lowest floor to floor to
Rate was $1985 per m2 GST inclusive ($1805 reduce overall building height; it satisfies the
per m2 GST exclusive) for the demonstration BCA fire and acoustic requirements without
project, and comprised the following: additional materials; and the proposed
external wall system provides the most cost
^^ external and SOU bounding (party and effective outer skin.
corridor) walls – ICF load; bearing and
requiring no additional acoustic treatment;
Visual 11: Example of construction

planning for estimation of
preliminary costings
3. Precast concrete external walls and pre- This increases on-site time, labour and
cast concrete floor cassette system flooring. materials costs (stud walling, insulation and
Rate: $2028 per m2 GST inclusive ($1845 per plasterboard). This option used the principle
m2 GST exclusive) for the demonstration of precast walls and adds an EPS (expanded
project and comprises the following: polystyrene) (or PIR, polyisocyanurate – fire
retardant insulation) layer with PVC framing
^^ precast concrete external wall frames; (to act as studs) and window framing as part
^^ ICF internal walls; of the pre-cast. Thus it extends the properties
^^ pre-cast concrete floor cassette system for of precast with an added insulation layer and
the flooring. framing to reduce on site work.
Buildability It also was found to reduce the need for

scaffold and render (as direct paint finish is
For the demonstration project, this option sufficient), hence the reduced the rate per
was considered as rates offered for this metre. While the project team was able to
project were far less than those on previous design a support frame to accommodate the
commercial projects due largely in part to the cassette flooring, the final cost of this option
cost effective building detailing. did not bring the total cost under the target
construction rate. Another feature of this
Normal precast is a durable and efficient option focussed on a mainly South Australian
construction solution, but to meet BCA part J based manufactured product.
thermal insulation requirement, an additional
inner wall is required for insulating the
peripheral walls.
Diagram 5: Cross section of precast flooring
Visual 12: Concrete floor cassette example

Remaining options (preliminary) 5. Hybrid 1 - heavy weight base with

lightweight upper levels.
The five remaining options were not market Rate $2059 per m² (GST inclusive, based
tested. A preliminary cost estimate based on preliminary concepts only) for the
primarily on floor and walling costs (which demonstration project, and made-up of the
typically represent the largest cost centre following composition:
expense at around 30% of the total building
cost) indicated that none of these options ^^ ground floor - load bearing ICF wall system
were at or below the target construction rate and a pretension precast; concrete plank
for the demonstration project: system floor system;
^^ upper levels - timber framed flooring and
4. Precast concrete, ICF party walls walls;
and concrete plank flooring.
Rate $2006 per m2 (GST inclusive, based ^^ fire rated ceilings;
on preliminary concepts only) for the ^^ sprinklers protection required.
demonstration project, and made-up of the
following composition: Buildability
^^ external walls - precast concrete load For the demonstration project this option
bearing external walls with paint or render delivers some cost effective outcomes such
finish, with an internal insulated skin to as a building with lesser weight and reduced
achieve thermal compliance; footings, yet the requirements for sprinklers
and timber framing detailing (charring
^^ single occupancy unit (SOU) bounding
blocking for fire protection etc.) pushes out
walls - ICF load bearing and requiring no
construction costs. The review session found
additional acoustic treatment;
the following issues additional on-site time,
^^ flooring – a precast pretension plank floor additional materialisation and subsequent
system long span; construction cost, ongoing maintenance and
^^ internal walls - partition style non-load system auditing costs.
bearing and unrated.
Buildability
For the demonstration project the upward
cost pressures for this construction technique
are the treatment of the external walls and
the insulated skin.
Visual 13: Example of construction planning for estimation of preliminary costings

6. Hybrid 2 - ICF & lightweight timber. 8. The masonry veneer solution.

Rate $2060 per m² (GST inclusive, based Rate $2344 per m² (GST inclusive, based
on preliminary concepts only) for the on preliminary concepts only) for the
demonstration project, and made-up of the demonstration project, and made-up of the
following composition: following composition:
^^ external walls - timer framed, load bearing ^^ brick veneer with structural steel framing,
and rated, cladding required suspended concrete flooring, precast
^^ single occupancy unit (SOU) bounding stairwell/ lift shaft;
walls – ICF load bearing and requiring no ^^ external walls - a concrete brick or block
additional acoustic treatment; external wall with an internal timber
^^ internal walls - timber framed fire rated framed insulated skin to achieve thermal
and loadbearing internal walls. compliance;
^^ sprinklers required to meet deemed to ^^ load bearing structure - steel framed
satisfy criteria of BCA; columns and beams;
^^ floor system - a cassette floor system ^^ single occupancy unit bounding walls - ICF
requiring fire rating and acoustic load bearing requiring no additional fire
treatment. protection or acoustic treatment;
^^ timber framed internal occupancy unit
Buildability (IOU) walls non load-bearing.
For the demonstration project the cost Buildability
pressures of this system are the 2 layer ceiling
system to create the void for services and For the demonstration project, the upward
external skin cladding including sarking etc. cost pressures for this construction technique
with floor/ ceiling depth of 420mm which are:
increase building height.
^^ the work flow impact of the slow brick/
7. Traditional heavy weight block laying process.
& suspended slab. ^^ fire protection of the steelwork;
Rate $2267 per m² (GST inclusive, based
^^ a slower construction system (propped
on preliminary concepts only) for the
floors etc.) increases the ‘preliminaries’;
demonstration project, and made-up of the
following composition: ^^ construction methodology.
^^ external walls - precast concrete, with an Prefabricated bathroom pods

internal insulated skin to achieve thermal
compliance; During the design process, concurrent
investigations continued into alternative and
^^ sou bounding walls - ICF load bearing and innovative methods of delivery. In particular
requiring no additional acoustic treatment; prefabricated bathroom pods were taken
^^ flooring system – traditional structural into account and costed and compared to the
steel decking no internal load bearing traditional wet trades laid in situ.
walls;
^^ internal walls - partition style non load For the demonstration project, factors that
bearing and unrated. affected this innovation not being adopted
are as follows:
Buildability ^^ found not to be cost advantageous (against
For the demonstration project, the upward traditional trade approach);
cost pressures for this construction technique ^^ found to have issues with fire integrity and
are as follows: penetrations of single occupancy units (of
services and pipework);
^^ heavy weight construction requires
^^ confronted issues of accessibility levels
increased footing sizes/ costs;
(step up into the bathroom pod); and
^^ the precast wall requires an internal
^^ found to have an increased material use
insulated skin to achieve thermal
(double up of floors on floors).
compliance;
^^ a slower construction system (propped
floors etc.) increases the ‘preliminaries.’
Accessible apartment
The final concept allows for an accessible apartment which speaks to the high level of design
innovation embodied in the project. It demonstrates the flexibility of the design by the
conversion potential of apartment 4 on the ground floor. This is an example of the universal
nature of the design, its modularisation and uniform room sizing. It is the openness of the
floor plan and the generous sizing of rooms that contribute to the ease of conversion. The
extract below of the building floor plate depicts this optional feature, requiring only internal
modifications.
Diagram 6: Apartment 4, ground floor – Accessible option
Method of measurements Analysis by the project team for the 4-storey

apartment demonstration project building
For benchmarking purposes, floor space at The Square in Woodville West had the
measurement was calculated in accordance following parameters and notable net result:
with the Property Council’s Method of
Measurement for Residential Properties (Section ^^ total area (apartments only):
2: Apartments and Sole-Occupancy Units). 1985 m² (Gross Building Area)
^^ no. of apartments: 20
Assessment metrics ^^ cost of construction:
During the assessment of design and costs $3,918,390 (inclusive of GST)
phase an interesting discussion emerged ^^ rate per m²:
within the project team. Whilst a lot of $1974 per m² (inclusive of GST)
emphasis was placed on a target construction ^^ cost per apartment:
rate per square metre, caution is required $195,920 (inclusive of GST)
when referring to generic rates as this could
lead to potentially misleading conclusions. When compared to a similar project within
5km of the CBD that is only 3 storeys with
The final design of the apartment undercroft car parking we find the following
demonstration project provides a ‘dollar net result:
dense’ building as the efficient solution
proposed by Studio Nine & Mossop has ^^ total area (apartments only):
minimised areas. Such buildings include 2502 m² (Gross Building Area, GBA)
‘high cost areas’ (the apartments) and ‘low ^^ no. of apartments: 16
cost’ areas (e.g. plazas, large balconies, ^^ cost of construction:
grand ‘public’ / common spaces, and car $4,500,000 (inclusive of GST)
parking). When ‘low cost’ construction areas
^^ rate per m²:
are incorporated within the overall building
$1798 per m² (inclusive of GST)
area, the resultant rate per square metre
reduces. However, by creating efficiencies and ^^ cost per apartment:
especially when reducing the proportion of $281,250 (inclusive of GST)
‘low cost : high cost’ areas, counter intuitively,
Whilst the second example appears to be the
the rate per square metre increases. An
more cost effective outcome it is not the most
example of this can be seen below.
accurate determination of construction cost.
The apartments demonstrated at The Square
indicates that they are $85,243 less per
apartment (including carpark) to construct.
This outcome demonstrates the construction Building Code of Australia

cost reduction is achieved through efficient
construction techniques (load direct to The four storey Class 2 with Type A
ground enabled by at grade parking) coupled construction requirement challenges cost
with efficient spatial design, even though it effective construction and methodology. Key
is a four storey building which automatically BCA considerations for the demonstration
triggers higher construction costs (due to project included:
lifting equipment and site preliminaries).
a. the maximisation of apartments
Another way of looking at these metrics are utilising the core, minimising circulation
by examining the construction rate to include and achieving egress distances play a
the car parking areas (whether within the significant role in the building layout and
building envelope or at grade), and in the case overall reduction of area.
of the final demonstration apartment design,
b. accessibility
we find as follows:
c. opinions were sought from the consultant
^^ total area:
design team to review material properties,
2568m² (GBA + at-grade carpark area)
provide spatial analysis and comment on
^^ no. of apartments: 20 fire stability and amenity components of
^^ cost of construction: the BCA.
$3,918,390 (inclusive of GST)
^^ rate per m²: Land Prerequisites
$1528 per m² (inclusive of GST)
Site constraints and opportunities
^^ cost per apartment:
$195,920 (inclusive of GST) The subject site is located on Sweeney
Terrace, Woodville West, with open space and
Statutory requirements the core precinct to the immediate north and
in close proximity to bus and rail links.
For the demonstration project, the project
team had to consider the following statutory A site constraint having impact on the
requirements for the design, materials development was land value: the higher the
selection and construction methodology of cost of the land, the more undercroft parking
the four-storey apartment building. becomes economically viable. Conversely,
low value land will not economically support
Development Plan the higher construction costs of undercroft
The subject site is within the Woodville West parking (evident in the project site).
Policy Area 23 and adjoins the Core Precinct. Located on the intersection of Sweeney
The objectives, desired character and the Terrace and a proposed lane (to the western
principles of development control of the edge), the site had two frontages. The bus
development plan provided design cues and and rail stops are a short walk along Sweeney
played a significant role in shaping the project, Terrace.
from overall urban form and character, to
building heights, setbacks, privacy screenings The two frontages provide the opportunity
and treatments and passive surveillance for pedestrian access to the ’front door’ facing
considerations. Sweeney Terrace and a service and vehicular
access is off the proposed lane.
To realise an affordable apartment building
replicable in a number of locations, the
‘approvals process’ should be typical. The
project aimed to design within requirements
of the Development Plan and not push
boundaries.
Proportions and car parking

Car parking is located on the rear portion of
the site with direct access from a lane which
provided circulation efficiency. Through
efficient building design and site layout all
building, car parking, storage, access and
services requirements were accommodated
on the site of 1390m2.
Social impact
Neighbouring zones: The physical and
psychological connections to local facilities
(shopping, sporting organisations) - as well as
walking distances/ patterns and the proximity
of public transport - were all key factors
recognised during the design process.
The Woodville West Concept Plan

indicates the precinct as a medium density
neighbourhood, a rise in scale from 2 storey
(immediately adjoining the lower density
residential lots to the south) rising to 3, 4
and 5 stories (in the core precinct to the
immediate north). Given the subject site is
Visual 14: Locality plan located on the cusp of the 4 to 5 storey rise, it
would appear to have little neighbouring zone
This opportunity enables: impact.
a. vehicular and pedestrian separation

to provide a safe and pleasant point of
arrival;
b. a pedestrian access point from the core

precinct and rail station link;
c. discreet services and waste collection

point accessible from the street and lane;
d. spatial and economic advantages - the

two frontages eliminated the land use
and costs given over to vehicle circulation
(such as long driveways and paving);
e. efficiency of the building shape/ envelope

and vehicular circulation and in turn the
feasibility of a project due to the regularity
and proportion of the site.
Regulated Trees:
Having no regulated trees on the site or Diagram 7: site plan including proposed landscaping.
adjoining sites delivered efficiencies, in that
root protection curtilages did not impact on
the land use. Whilst there are a number of
trees in the general area, on the advice of
an arborist, they have been declared poor
specimens with structural deficiencies or
disease and, being so, will be removed if
construction commences on site.
The building is designed for CPTED principles and contributes to the neighbourhood’s social
amenity in the following manner:
a. providing passive surveillance of the street from the apartments
b. ground floor apartments with direct access to the street
c. the apartment building’s front door is located off the transport infrastructure linkage.
Visual 15: View from the site looking north-west
Services Infrastructure, Currently the most effective use of photo

and Utility Management voltaic cells is at the time of generation.
This is envisaged to be while the majority of
Services and infrastructure are paramount residents are predominately away from the
with any feasibility as the investigation of premises (at work). There will not be any real
existing water pressure and flows, electrical economic advantage with a 10 year return on
capacity, sewer capacity, and gas capacity investment. Battery technology and reducing
will impact upon system decisions and capital cost indicate storage systems are
construction costs. For the demonstration on the cusp of being a viable alternative to
project, the following solutions are based on energy supply.
testing data, cost-benefit analysis of services
and metering costs provided by Secon Subsequently, the project team excluded the
Consulting Engineers (see Appendix 9 for full use of photovoltaic systems as there was no
report). perceived cost benefit to the residents.
Deliberate decisions are required based b) Water

on how the building will be managed.
The determination of flow rates and pressure
This provides a further opportunity for
should be undertaken at the outset of a
cost savings on capital and operational
project to confirm infrastructure capacity to
expenditure that impacts on the cost per
deliver water for domestic and/ or firefighting
square metre rate for construction and
purposes as project budgets are influenced by
ultimately affects the affordability of living in
the type of construction or booster systems
the building for the future occupants.
necessary.
a) Electrical The Woodville West mains water system
Electric / induction hotplate was upgraded in 2013. However, in Sweeney
The team decided to specify an electric / Terrace, a short section of the existing water
induction hotplate in the kitchen in lieu of main (a 100mm cast iron pipe installed in
the more traditional gas stove, as it saves on 1945) was retained as the connection from
additional infrastructure costs of having a the project site. Testing revealed that water
separate series of pipework required by gas. pressures available at the project site do not
meet the demands of domestic potable water
Photovoltaics (PV): for a four storey residential building.
Careful consideration of PV’s on the roof
warranted an appropriate cost impost review
of who pays and who benefits.
As other sites earmarked for 4-5 storey Recycled Water:

apartments are to be serviced from this in locations where re-cycled water is available,
section of the existing main, Renewal SA as rainwater tanks are not required. As re-cycled
developer has planned to replace this section water is available and is metered in the same
of main with an upgraded 150mm pipe as part manner as potable water, similarly, it attracts
of the urban renewal works. the same metering consideration of individual
versus common. In this particular instance,
If the cast iron pipe was not replaced, a the anticipated low use and resultant
storage tank with dual pressure pumps will negligible 10 cent per day per apartment
be required to boost the water pressure to warranted the use of common meter system.
meet the demands of the potable/ domestic Such costs are added to the body corporate
water supply. The replacement of the cast iron fee.
section proved to be the most cost effective
solution in any event. c) Fire (Services)
Domestic potable water: Construction Type A (necessary for this
Metering options were considered to examine type and scale of building) attracts the
the spatial and pipework requirements to most stringent level of fire protection. The
select an efficient and cost effective outcome. selection of certain materials for construction
may require the fire sprinkler installation to
^^ option 1 – individual water meters: 21
achieve the required Fire Resistant Levels
retailer meters (20 resident and 1 common)
(FRL).
require space on the ground floor and
significant lineal metres of pipework.
^^ option 2 – one retail metre: could be

supplied with remote reading private
meters at each apartment to save on
space and pipework costs and managed
by the body corporate. However,
the matter of delinquent payment
will be the responsibility of the body
corporate. In keeping with the cost and
de-materialisation aim, this option was
adopted.
Diagram 8: services concept planning

Based on the flow tests organised by the In considering construction options for the
project team with SA Water, a simulation of a apartment project as well as considering the
combined fire hydrant and sprinkler system standard fire service requirements for the
of the proposed four storey development building the estimated costs are presented
was undertaken. Testing identified a large below: (excluding GST and margins):
variation in the available water pressure.
However, as the water main is being upgraded ^^ fire tanks and pumps, $120,000;
to a 150mm service any pressure issues would area, 6m x 11m (assume 144,000l tank,
be resolved. 5.35 dia. tank, 6.5m high)
If a lightweight building solution was ^^ mains water tank and booster pumps,
considered it would require a sprinkler fire $30,000; area, 3m x 5m.
protection system with on-going service
and maintenance costs borne by the ‘Body d) Sewer
Corporate.’ Should the lightweight solution be Drainage
a viable option, the decision making process To minimise pipe runs and pipe work
recognised the additional construction costs efficiency, the building is designed with back-
and the pressures of ongoing cost to the to-back risers. Ceiling levels have been set
residents’ Body Corporate. The alternative cognisant of the necessary drainage falls.
was to engineer the building so that fire
sprinklers are not required in the form of e) Mechanical ventilation
(heavy weight) construction which would not
require sprinkler protection, which at the For safety, roof mounted plant was avoided.
end of the day proved to be the most cost Floor by floor location will provide the most
effective outcome. efficient, safe access.
Cross ventilation was a significant driver in

the apartment building’s design. Split system
reverse cycle air conditioning would be
provided in the living areas with fans in the
bedrooms. Bathrooms and laundries located
inboard of the building perimeter would have
ducted ventilation to atmosphere via dropped
ceiling panels (2400mm above floor level).
f) Gas
Gas metering attracts the same responsibility
and installation considerations as water and
electricity of common versus individual. For
the provision of hot water to apartments, the
following gas service options were considered:
^^ 20 individual gas meters provided in

Diagram 9: extract of hydraulic services land lord internal
centralised locations requires significant
reticulation isometric view (services plan – whole building)
free wall space at ground floor level or
space at the site boundary and would
deliver a poor service with significant
Regardless of a sprinkler system being ‘run-off’ volumes.
installed, to meet the requirements of the
hydrant system (without the need for storage ^^ Individual gas hot water units located
tanks and pumps), the servicing infrastructure on the balcony of each apartment: was
would be supported by the upgraded 150mm seen as contributing to materialisation,
water main and negate any potential future construction and capital cost. Factors
water pressure issues at the subject site or included:
other surrounding sites developed in the ^^ the exhausting of gas fumes
future. ^^ a tundish for each hot water unit,
required significant plumbing

infrastructure.
A centralised system was selected because it

was considered simple and more reliable. It
is available from service providers interested
in supplying, installing, managing and
maintaining a centralised hot water system
(at no cost to the builder, building owner/s or
developer). The system includes centralised
heating units flued to atmosphere with
metered hot water consumption to each
apartment and being charged according to
consumption.
The user pays for the hot water equipment

over time via usage charges. This system
rationalises gas metering (managed by the
body corporate via issuing sub-metered
invoices) and is pipework efficient.
Centralised units are located in cabinets on

the top floor in the demonstration apartment
building design.
Ownership Structure (Community Titles)

Multi-storey apartment buildings are usually
established over a community title. With
mixed use such as ground floor commercial
or retail, primary and secondary community
titling arrangements would be required and
early resolution would assist the decision
making process relating to services and
management. These may impact on project
design and cost. However, in the case of a
single use building as the demonstration
project, it will be established over a
Community Title.
The ‘Lot’ would include:
^^ the apartment, its balcony and/ or private

open space;
^^ the storage unit;
^^ the carport.
The ‘Common Property’ would include:
^^ the driveway;
^^ building curtilage (excluding private open
spaces for each ground floor apartment) ;
^^ refuse area;
^^ internal circulation spaces including lifts
and stairs.
CONCLUSION
In the case of the demonstration project, The success of any project is largely
the research unearthed a plethora of new dependent on a few key factors. The team
materials and emerging systems which of professional consultants formulated was
are continually emerging. Hence this case based on previously demonstrated skills
study does not propose a single solution and innovation. This, along with sound
to the building cost challenge. Rather, it methodology and a work structure that
demonstrates a logical step-by-step process streamlines procedures, makes better
whereby site factors, material selection, outcomes easier to attain.
construction methodology, influences
building layout and design solutions. During However, this project has an added
our early discussion, an important principle dimension: the open co-operation and
was realised. As a result, we deliberately collaboration of the Renewal SA team, the
avoided locking into a one fabricator or one Building Partner and the Design Partners.
material solution. By allowing such flexibility, To this aspect, Studio Nine note they have
it avoids being dependent upon one supplier been proud to contribute to the collaborative
or fabricator supply path that may cause cost and innovative of the Construction Cost
blow outs or construction delays during the Demonstration Project.
building program.
For the purpose of the demonstration project,

‘total project construction cost’ was defined as
the combined cost of site works; at-grade car
parking; building services and infrastructure;
building cost; landscaping; builder’s margin
and overheads (including GST but excluding
consultants’ fees).
Renewal SA was aiming to achieve a total

project construction cost between $1,800
m² and $2,000 m² (including GST) to ensure
a commercially viable development with
apartments selling benchmarked during Stage
1 of The Square in the high $200,000s to low
$300,000s.
The project methodology delivered a market-

based and commercially-replicable four-
storey apartment building at one of the
lowest construction costs in Adelaide.
Using the iterative eight-step process

outlined in the support documents to this
case study (executive summary and lessons
learned), the project team achieved a visually
appealing and highly marketable design
with a construction cost of $1974 per m² GST
inclusive ($1795 per m² GST exclusive). The
opportunity to contribute in the delivery
of the Construction Demonstration Project
co-operate in a collaborative enterprise was
highly rewarding.
APPENDICES
1. Key project participants
2. Partner profiles
3. High level design outcomes
4. Affordable housing price points
5. IRG participation
6. Project schedule
7. Cost centres
8. Workshops
9. Designs
Appendix 1: Key project participants DESIGN PARTNER: ARCHITECTS,

Studio Nine
The Apartment Construction Cost
Demonstration Project was made possible Managing Director: John Galluccio,
through the combined experience and talent
of individuals across the public and private Design Director: David Ey
sectors.
Architect: Paul Rawinski

INDUSTRY REFERENCE GROUP DESIGN PARTNERS – CONSULTANTS
Australian Institute of Architects:
Tony Giannone Structural and civil Engineers – PT Design
Australian Institute of Building Surveyors: Managing Director: Andre Vreugdenburg

Mike Thomas / Tony Travaglione Structural Engineer: Ronan Whelan
Housing Industry Association: Civil Engineer: Matthew Primer
Stephen Knight
Master Builders Association:

Ian Markos / Brendon Corby Services Engineers – Secon
Planning Institute of Australia: Lead Electrical Engineer: Stewart Forster
Rick Hutchins / Rebecca Martin
Lead Mechanical Engineer: Anthony Davidson
Property Council of Australia:
Anthony Carrocci / Michael Carrocci Lead Hydraulic and Fire Engineer:
Matthew Fetchner
Urban Development Institute of Australia:
Jim Curnow / Anne Highet
Building Certification – Katnich Dodd

RENEWAL SA PROJECT TEAM Lead Certifier: Ian Dodd
General Managers:
Mark Devine & Michael Buchan
Fire Engineering – Arup
Project Sponsors:
John Blaess & Vincent Rigter Lead fire engineer: David Graham
Project Director: Richard Stranger
Project Manager: Steven Pargaliti REPORT AUTHORS

Project Governance: Eric Wisgard Editors:
Eric Wisgard, Steven Pargaliti (Renewal SA)
Woodville West Development Manager:
Kylee Gligic Case Study:
David Ey, John Galluccio (Studio Nine)
Project Marketing: Zara McDonald

BUILDING PARTNER:
Mossop Construction + Interiors
Managing Director: Grant Mossop
Construction lead: Jathin Balan
Construction manager: Tony Leonello

Appendix 2: Partner profiles Mossop Construction + Interiors
Renewal SA Our business heritage is a unique story of

three brothers all with substantial trade
Finding a solution to the current high backgrounds and experience working for a
construction cost of apartment buildings is major builder.
in direct alignment with the key objective of
Renewal SA to provide opportunities for more The Mossop name has been continuously
South Australians to live in homes that are associated with the south Australian building
affordable and in areas of their choice. industry since 1946 when Bert Mossop did
general building work following his return
Pursuant to the Housing and Urban from WWII. In the 1950’s he created a
Development (Administrative Arrangements) niche business building caravans for South
(Urban Renewal Authority) Regulations 2012, Australian families who were increasingly
the Urban Renewal Authority (trading as looking for low cost holidays to share with
Renewal SA) was established on 1 March 2012 their young families. The ‘60’s credit squeeze
as a statutory corporation reporting to the put enormous pressure on broadway
Minister for Housing and Urban Development caravan construction business but again he
with a specific mandate to work on three identified another niche and built a successful
key State Government priorities – creating a ceilings operation.by the late 1970’s his three
vibrant city, maintaining our safe communities sons, Ray, John and Neil had served their
and healthy neighbourhoods and having an apprenticeships in the building industry as
affordable place to live for everyone. Renewal carpenters and joiners and established their
SA is a body corporate and is governed by a own careers in one of Adelaide’s largest
Board of Management consisting of members building companies. In 1979 the brothers
appointed by the Governor. established Mossop Group Pty Ltd as a
building/interior specialist and the family
Renewal SA is responsible for planning, business has grown to become a significant
managing and facilitating the delivery of South Australian based construction and
strategic residential, mixed use and industrial interiors company. Mossop construction
development projects. With a strong focus + Interiors now based in the iconic church
on community engagement, Renewal SA located at 155 Port Road Hindmarsh.
works cooperatively with communities, local
government, the private sector and the not- Ray, John and Neil lived by these values gifting
for-profit sector to achieve this aim. a formidable legacy to the firm. They are now
entrenched in providing guidance for our
All of Renewal SA’s residential developments everyday behaviour.
comply with the State Government’s
mandated requirement for 15% affordable ^^ Hardwork: we take pride in our work; we’re
housing - and in many cases, Renewal SA’s not afraid of putting in the hours; we go
projects exceed this minimum standard the extra mile.
through innovative thinking and diverse ^^ Fairness: we achieve the best outcomes for
housing products. our clients because we are reasonable and
respect all people involved in the project.
www.renewalsa.sa.gov.au
^^ Integrity: our word is our bond. We are
open, honest and reliable.
^^ Teamwork: success comes when all
members of the project team work
together cooperatively and respectfully
deal with problems.
^^ Problem-solving: it is important to
anticipate issues and devise practical and
intelligent solutions; we exercise care to
ensure the best outcomes; ”getting it right
first time”:
^^ Value for money: we deliver good quality at
a fair price.
www.mossop.com.au
Studio Nine Education is one of the staples with particular

expertise ranging from kindergarten to
Studio Nine is a multi-award-winning tertiary facilities. Studio Nine has a great
architectural practice based in Kent Town depth of experience in hospitality, including
with dozens of successful projects throughout one very famous international chain of
Australia. family restaurants, restaurants, bars and
entertainment venues stimulating and
The business began in 1998 when three of
enticing for customers. Commercial ventures
Adelaide’s leading architects came together to
have included office buildings, retail outlets
collaborate on a project. Each had a different
and showrooms. Studio Nine has also
area of individual expertise but all shared one
completed a number of innovative industrial
belief: architecture isn’t just about buildings;
projects as well as retail fit-outs, sporting
it’s also how they interact with people and the
complexes, urban design projects’ (even a
world around them. From that single project,
mausoleum) and heritage-listed properties.
the firm expanded over nearly two decades
and became Studio Nine, adding a fourth Past recognition for outstanding work
partner in 2007. includes the Australian Civic Trust Awards
2014 (People’s Choice Award) for Glenunga
Today, Studio Nine has 20 staff members
International High School; UDIA SA Award for
comprising senior and junior architects,
Excellence 2013 (Residential Development
interior architects, and technicians working in
Award) for Julia Farr Campbelltown; the
an open studio environment. This diversity
HIA-CSR Australian Housing Awards 2012
means unique needs can be answered
(Australian Display Home of the Year) for
by a tailored expression of architecture,
“Synergy” and numerous Australian Institute
always achieved practically; sustainably and
of Architects citations over the years.
efficiently; whether it’s in Adelaide, across the
State or across the continent. www.studionine.net.au
The range of work spans the broadest
spectrum: apartments; shop-top apartments
of three- to four-storeys; medium-density
housing; row housing; display/show homes;
bespoke one-off houses; beach houses;
housing for residents with severe physical
or intellectual disabilities; independent
living units for the aged; social housing;
affordable housing; and short-term serviced
accommodation.
Appendix 3: High Level Design C. Viability and Affordability

Outcomes ^^ Take account for income levels and price
points in accordance with the project brief
The preferred builder partner is required to
assist with the consideration of and respond ^^ Responds to the market brief
to the following four principles during Stage 2 ^^ Demonstrates viable returns.
(Research and Design Development Phase of
the demonstration project: D. Innovation
A. Design ^^ Employs innovative and efficient

construction techniques and/or building
^^ Attractive and desirable dwellings that materials to reduce costs and improve
provide excellent amenity affordability
^^ Site and building layout, maximising ^^ Varied built form concepts and
opportunities for effective use of space, approaches, including adaptable housing.
light and ventilation
Reference: Renewal SA EOI documents
^^ Size, orientation and provision of private
for Stage 1A and 1B for the apartment
and communal open space
construction cost demonstration project,
^^ Building appearance and visual interest, released May 2014 and July 2014.
through use of a range of building
materials and articulation in building
design
^^ Appearance and relationship to the street
and public spaces
^^ Response to levels and adjoining
allotments, particularly with respect to car
parking
^^ Passive surveillance optimisation for site
and building security.
B. Sustainability
^^ Design of the site and building to reduce
resource demands
^^ Reduced operating costs through whole-
of-life consideration
^^ Selection of efficient appliances
^^ Water harvest and re-use
^^ Energy use
^^ Passive solar design including:
^^ Orientation
^^ Shading
^^ Cross ventilation
^^ Thermal mass
^^ Material selection, including
low-embodied energy
^^ Integrated landscape solution.
Appendix 4: Affordable Housing Price Points

As a guide, the following table provides relevant information on income levels and price points
associated with the State Government’s Affordable Housing Program:
2015 Affordability Indicators (Moderate Income Only)
Affordability Indicators Metropolitan Adelaide: 2015
Moderate Income (120% of median annual income)
Single Person Annual income* $75,000
Indicative house purchase price $304,000
Indicative weekly rental $401
TOD Price Variance - up to $349,600
*Upper Income Limits for Households to be eligible to purchase affordable homes are increased to $95,000 for couples and
families with up to three children and a further 8% for each additional independent child.
Refer to the Affordable Homes Program on the State Government website: Income and Asset
Limits for the Affordable Homes Program.
While these price points were increased by the State Government in May 2015, the project
team based its costings and commercial assessment initially on the price points that applied
in 2013-2014.
Appendix 5: IRG participation The IRG was not empowered to make key decisions
regarding project elements and delivery.
The key purpose of the Industry Reference
Group (IRG) was to collaborate and engage The following is a list of the main engagements
with industry representative bodies. The IRG of the IRG to date:
met to monitor and input into the progress of
the demonstration project as well as ensuring ^^ Meeting 1 Friday, 21 March 2014
the formal exchange of learnings from the ^^ Meeting 2 Thursday, 18 September 2014
project site. ^^ Meeting 3 Thursday, 20 November 2014
In particular, the IRG aimed to: ^^ Progress Report Friday, 24 March 2015
^^ Meeting 4 Thursday, 27 August 2015
^^ monitor and provide feedback to the ^^ Final Meeting Tuesday, 9 August 2016
progress of the demonstration project;

^^ ensure the formal exchange of learnings
from the project site to each participating
organisation before, during and after any
construction; and
^^ where possible, share technical
contributions from members of
participating organisations on cost
effective medium-density apartment
development.
Appendix 6: Project schedule

The project schedule comprised the following key steps:
Key Step Timing
Establish Industry Reference Group Mar-14
Builder Partner selection (EOI) – Mossop Jul-14
Design team selection (EOI) – Studio Nine Sep-14
Research, design & documentation phase Sep-14 to Jun-15
Stop / Go decision: target construction rate June-15
Release report Nov-16
Construction of apartment building Nov-16 ~ Oct-17*
Marketing and pre-sales Nov-16*
*these dates are indicative only.

Appendix 7: Cost Centres

Cost Centre identification - Hot Spots
Trade Hot Spots Based on Case study

Breakdown previous
like projects
Site preparation (incl. at grade carpark) - 1% 4%
Sub Structure 4-5% 4% 4%
Floor and support Systems (superstructure) 10-14% 14% 9%
External Wall Systems 9-12% 12% 15%
Roofing - 2% 2%
Internal Walls 7-8% 4% 7%
Doors/ Windows 3-4% 4% 2%
External Windows - 3% 3%
Ceilings & linings - 4% 5%
Joinery (& cupboards) 5-6% 5% 5%
Handrails, balustrades, fitments in steel - 2% 2%

frame
Floor and wall finishes 4-7% - -

^^ Tiling - 2% 1%
^^ Floor coverings - 1% 2%
^^ Painting and surface finishes - 3% 2%
Appliances and equipment - 1% 1%
Electrical (incl. fire detection) 5-8% 7% 7%
Mechanical/ AC 3-4% 4% 2%
Plumbing (& Sanitary ware) plus Hydraulics 6-7% 6% 6%
Fire services 3-5% 0% 2%
Lift 2-3% 2% 2%
Building sundry works - 6% 4%
Fencing gates and landscaping - 1% 1%
Preliminaries
Overheads and profit 7.9% 12% 12%
Fees and charges

Appendix 8: Workshops
Site visit 1: 16-Sep-14, Mossops, Migrant Centre - ICF concrete pour
^^ Mossop, Studio 9, Renewal SA - Site visit @ the Migrant Resource Centre
Visual 16: Mossop site visit
Workshop 1: 9-Oct-14, Presentations workshop at 2.30pm

^^ Wall and flooring suppliers, 4 off.
Workshop 2: 17-Oct-14, Design @ Bowden site visit,

^^ Bowden Apartment design experiences
^^ To look at transfer of learnings from Bowden that should be applied to the
Woodville West apartment demo project
Workshop 3: 23-Oct-15, Presentations workshop: structural systems:

^^ Wall, flooring and cladding suppliers, 4 off.
Workshop 4: 6-Nov14, Presentations workshop

^^ Wall, flooring and cladding suppliers, 4 off.
^^ Sustainability
Workshop 5: 15-Dec-14, Building Management - apartment services workshop (The

Square Apartment Project)
^^ Workshopping more closely how the building is managed for input
consideration of design & cost: upfront and lifecycle
Workshop 6: 19-Jan-15, Planning Review - apartment project (Woodville West)

^^ Preliminary planning review prior to lodging application to DAC
Site visit 2: 30-Jan-15, Site Visit – modular bathroom pods

^^ Modular systems factory site visit
Appendix 9: Designs
Download select drawings from the website:
www.renewalsa.sa.gov.au/projects/apartment-cost-demonstration-project
FURTHER
INFORMATION
Phone
+61 8 8207 1300
Email
[email protected]
Website
www.renewalsa.sa.gov.au
Publication
November 2016
Urban Renewal Authority

(trading as Renewal SA)
Level 9, Riverside Centre
North Terrace, Adelaide
South Australia 5000
GPO Box 698, Adelaide 5001
DX 56502

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THE APARTMENT CONSTRUCTION

COST DEMONSTRATION PROJECT

Disclaimer: This Report was produced by

The information contained in this

Design Partner Lead

^^ Design and construction lessons

9. Construction cost reduction

10. Project design

11. Apartment layouts

12. Construction options

With this in mind, a key objective of the

2. Sharing the learnings 3. Paramount objectives

4. Industry involvement development activity to determine cost-

“What we learned” c. Work to date clearly demonstrates

f. Easy fire compartmentalisation & compact c. Implementing a ‘first principles’ approach:

Commercial assessment Investigations and assessments

8. Research phase ^^ Identification of cost centres

^^ Open minded/ flexible thinking

^^ Efficiency: floorplans eliminating wasted

In addition to these design considerations, the b. Reducing the volume of material by

^^ Materials and ‘de-materialisation’ c. Co-location of services to allow floors to

j. Reduced building footprint

l. Prefabrication such as bathroom pods,

10. Preferred design

Visual 1: The site plan of the demonstration project

^^ total floor area of 1985m2 ^^ 20 undercover carports each with a

11. Apartment layouts

Type Floor Area (m2) Number Mix Anticipated Retail Price

Table 1: Apartment details

Visual 2: Floor plans of the demonstration project

12. Construction options

Visual 3: 3D view, front of building

The Preferred Option ^^ satisfies BCA requirements without

Option 3 ^^ not cost competitive (against traditional

The project has also revealed a plethora

While this report does not propose a single

PART A – LESSONS LEARNED

Process flow chart – Research & design documentation phase

a. Commitment to collaborative process

b. Establishing the project success factors

c. Implementing a ‘first principles’ approach

d. Determining cost centres

e. Developing the concept design

g. Interim Stop / Go Assessment

h. Validating the concept design

Success - project objectives achieved

A. Commitment to collaborative This collaborative approach delivered the

4. Another requirement in the EOI process

Actions C. Implementing a ‘first principles’

4. Appreciate the need to investigate

5. Accurately determine current market price D. Determining cost centres

^^ Floor and support systems 10-14%;

Considering the above cost centres, the

It is important to note that these construction

Visual 4: First principle concepts

3. Workshops to evaluate materials and Key Lesson

Visual 5: Sample of cost centres

E. Developing the concept design Actions