Utilities Performance NSW Reference Rates Manual

NSW Reference Rates Manual
Valuation of water supply, sewerage

and stormwater assets
w w w.dpi.nsw.gov.au
Publisher: Department of Primary Industries, a division of NSW Department of Trade and Investment, Regional
Infrastructure and Services
Title: NSW Reference Rates Manual - Valuation of Water Supply, Sewerage and Stormwater Assets
First published June 2014
ISBN 978 1 74256 646 7
NSW Office of Water
Level 18, 227 Elizabeth Street
GPO Box 3889
Sydney NSW 2001
T 02 8281 7777 F 02 8281 7799
[email protected]
www.water.nsw.gov.au
Compiling editors:
Sam Samra, Senior Manager, Water Utility Performance
Maree Abood, Director, Urban Water
State of New South Wales through the Department of Trade and Investment, Regional Infrastructure and
Services 2014. You may copy, distribute and otherwise freely deal with this publication for any purpose, provided
that you attribute the Department of Trade and Investment, Regional Infrastructure and Services as the owner.
Disclaimer: The information contained in this publication is based on knowledge and understanding at the time of
writing (June 2014). However, because of advances in knowledge, users are reminded of the need to ensure that
information upon which they rely is up to date and to check currency of the information with the appropriate officer
of the Department of Primary Industries or the users independent adviser.
NSW Office of Water, June 2014
Foreword
Foreword
This 2014 Reference Rates Manual for Valuation of Water Supply, Sewerage and Stormwater Assets
updates the 2003 edition of the manual and was prepared by the Urban Water branch of the NSW
1
Office of Water. NSW Local Water Utilities are required to determine the fair value and current
replacement cost depreciation for their water supply, sewerage and stormwater assets in accordance
with this Manual.
The Reference Rates shown are for June 2014 and are based on competitive contract prices obtained
by NSW Public Works for water supply and sewerage projects within NSW, supplemented by
published rates for water supply, sewerage and stormwater works and also rates obtained from a
number of LWUs and other agencies.
Valuations are on a MEERA Modern Engineering Equivalent Replacement Asset basis.

NSW Office of Water, June 2014
Acknowledgements
Acknowledgements
2
The NSW Office of Water acknowledges NSW Public Works, Goldenfields Water County Council,
Gosford City Council and Tweed Shire Council for providing contract information for water supply and
sewerage projects, Landcom, Roads and Maritime Services, Fairfield and Shoalhaven City Councils,
for providing cost data for stormwater assets.
An advance copy of the manual was distributed for comment to a representative group of LWUs and
to industry groups. Valuable comments provided by the following are acknowledged: Local
Government NSW (LGNSW), the NSW Water Industry Directorate, Albury City Council, Clarence
Valley Council, Cootamundra Shire Council, Dubbo City Council, Goldenfields Water County Council,
Leeton Shire Council, Orange City Council, Lismore City Council, Riverina Water County Council,
Shoalhaven City Council, Tumut Council, Wagga Wagga City Council, Hydroscience Consulting and
NSW Public Works.
The NSW Office of Water is responsible for managing the NSW Governments Country Towns Water Supply
and Sewerage (CTWSS) Program (www.water.nsw.gov.au), which is a major reform Program. The Office of
Water oversees and monitors utility performance, provides leadership, guidance, software and training to the
utilities and is the primary regulator for the 105 regional LWUs.
ii | NSW Office of Water, June 2014
Abbreviated Contents
Abbreviated Contents
Foreword .............................................................................................................................................i
Acknowledgements ............................................................................................................................. ii
Abbreviated Contents......................................................................................................................... iii
Contents ............................................................................................................................................ iv
Tables............................................................................................................................................... vii
Abbreviations ................................................................................................................................... viii
1. Executive Overview ......................................................................................................................1
2. Basis of Reference Rates .............................................................................................................5
3. Reference Rates Tables .............................................................................................................10
4. Applying the Reference Rates.....................................................................................................39
5. Contract Rates Figures 18 to 34...............................................................................................45
Attachment 1 NSW Water Supply & Sewerage Construction Cost Indices .........................................62
Attachment 2 Indicative Useful Lives of Assets ..................................................................................64
Index ................................................................................................................................................65
NSW Office of Water, June 2014 | iii
Contents
Contents
Foreword .......................................................................................................................................i
Acknowledgements....................................................................................................................... ii
Abbreviated Contents .................................................................................................................. iii
Contents ...................................................................................................................................... iv
Tables ........................................................................................................................................ vii
Abbreviations............................................................................................................................. viii
1.
2.
Executive Overview .............................................................................................................1

1.1.
Best-Practice Management Framework...................................................................1
1.2.
Purpose of Reference Rates Manual.......................................................................1
1.3.
Use of Reference Rates for Existing Assets ............................................................3
1.4.
Use of Reference Rates for Future Works ...............................................................3
1.5.
Related Publications ...............................................................................................3
Basis of Reference Rates ....................................................................................................5

2.1.
General ..................................................................................................................5
2.2.
Reference Rates.....................................................................................................5
2.3.
Contract Rates........................................................................................................6
2.4.
Survey, Investigation, Design & Project Management (SID).....................................6
2.5.
Contingencies .........................................................................................................7
2.6.
Estimates Based on these Reference Rates ...........................................................8
2.7.
Additional Costs for Rock Excavation and Construction Difficulty.............................8
2.8.
Site-Specific Works.................................................................................................9
3.
Reference Rates Tables ....................................................................................................10
4.
Applying the Reference Rates ...........................................................................................39

4.1.
4.2.
Water Supply Mains..............................................................................................39

4.1.1
Example 1: 150 Diameter AC Water Supply Reticulation Main ..................39
4.1.2
Example 2: 200 Diameter DICL Water Supply Trunk Main ........................39
4.1.3
Example 3: 375 Diameter uPVC Water Supply Trunk Main ......................39
4.1.4
Example 4: 600 Diameter Steel Water Supply Trunk Main ........................40
4.1.5
Example 5: 200 Diameter DICL Water Supply Trunk Main with 5% Rock .. 40
4.1.6
Example 6: 200 Diameter DICL Water Supply Trunk Main with Moderate
Construction Difficulty ............................................................40
Sewer Mains .........................................................................................................40

4.2.1
Example 7: 150 Diameter VC Sewer Reticulation Main at Minimum Depth 40
4.2.2
Example 8: 225 Diameter uPVC Sewer Trunk Main at Minimum Depth .....40
4.2.3
Example 9: 100 Diameter uPVC Sewer Rising Main at Minimum Depth .... 40
4.2.4
Example 10: 150 Diameter VC Sewer Reticulation Main - 3m Depth .........41
iv | NSW Office of Water, June 2014
Contents
4.3.
4.2.5
Example 11: 150 Diameter VC Sewer Reticulation Main - 4m Depth, 15%

Rock....................................................................................41
4.2.6
Example 12: 150 Diameter VC Sewer Reticulation Main - 3m Depth with

High Construction Difficulty ....................................................41
Water Pumping Stations .......................................................................................41

4.3.1
4.4.
Water Treatment Works ........................................................................................42

4.4.1
4.5.
4.8.
5.
Example 15: Service Reservoir (4ML Storage Capacity) ...........................42
Sewage Pumping Stations ....................................................................................42

4.6.1
4.7.
Example 14: Water Treatment Works of 10 ML/d Capacity .......................42
Service Reservoirs................................................................................................42
4.5.1
4.6.
Example 13: Water Pumping Station (1200 kW) .......................................41
Example 16: Sewage Pumping Station (Peak Wet Weather Flow 30 L/s at
30m head) .............................................................................42
Sewage Treatment Works.....................................................................................42

4.7.1
Example 17: Double Unit Biological Trickling Filtration Plant for 8,000 EP . 42
4.7.2
Example 18: Double Unit Extended Aeration Tank for 12,000 EP..............43
4.7.3
Example 19: B4000 Extended Aeration Box for 4,000 EP .........................43
Stormwater ...........................................................................................................44
4.8.1
Example 20: 450 Diameter RCP Stormwater Main....................................44
4.8.2
Example 21: Kerb Inlet Pit (Double Grate with Extended Lintel) ................44
4.8.3
Example 22: 600 Diameter RCP Stormwater Culvert beneath Road

Embankment .........................................................................44
Contract Rates Figures 18 to 34 .....................................................................................45
Attachment 1 NSW Water Supply & Sewerage Construction Cost Indices ...................................62
Attachment 2 Indicative Useful Lives of Assets............................................................................64
Index .........................................................................................................................................65
NSW Office of Water, June 2014 | v
Contents
Figures
Figure 1 NSW Best Practice Management of Water Supply and Sewerage Framework .......................4
Figure 2 Conventional Water Treatment Works .................................................................................15
Figure 3 Lagoon Sedimentation.........................................................................................................15
Figure 4 Lagoon Sedimentation Kangaroo Valley (Shoalhaven) ........................................................15
Figure 5 Standpipe Service Reservoir, Collarenebri (Walgett)............................................................19
Figure 6 Ground Level Service Reservoir, Murwillumbah (Tweed) .....................................................19
Figure 7 In-ground Submersible Pumping Station..............................................................................22
Figure 8 In-ground Pumping Station ..................................................................................................22
Figure 9 Elements of Preliminary Treatment ......................................................................................24
Figure 10 Mechanically Raked Bar Screen (left) and Grit Channel and Flume (right). ........................24
Figure 11 Typical Sludge Lagoon ......................................................................................................27
Figure 12 Typical Sludge Lagoon, Shoalhaven Heads NSW ..............................................................27
Figure 13 Aerated Lagoon, Cobar NSW ............................................................................................28
Figure 14 Intermittent Extended Aeration Tanks (IDEA), Port Macquarie NSW ..................................28
Figure 15 Box Intermittent Extended Aeration Tanks (IDEA), Bathurst NSW ......................................28
Figure 16 Intermittent Decanted Extended Aeration (IDEA) Channel .................................................30
Figure 17 Typical Intermittently Decanted Extended Aeration Tank ...................................................30
Figure 18 Water Mains Reticulation ................................................................................................45
Figure 19 Water Mains - Trunk Mains................................................................................................46
Figure 20 Water Pumping Stations ....................................................................................................47
Figure 21 Water Treatment Works Conventional Water Treatment and Lagoon Sedimentation .......48
Figure 22 Service Reservoirs ............................................................................................................49
Figure 23 Sewer Mains .....................................................................................................................50
Figure 24 Sewage Pumping Stations Low Head Submersible Type ................................................51
Figure 25 Sewage Treatment Works Siteworks ..............................................................................52
Figure 26 Sewage Treatment Works Preliminary Treatment ...........................................................53
Figure 27 Sewage Treatment Works Sludge Lagoon and Effluent Ponds........................................54
Figure 28 Sewage Treatment Works UV Disinfection......................................................................55
Figure 29 Sewage Treatment Works Extended Aeration Tanks ......................................................56
Figure 30 Sewage Treatment Works Extended Aeration Channels/Boxes.......................................57
Figure 31 Stormwater Mains .............................................................................................................58
Figure 32 Stormwater Pits .................................................................................................................59
Figure 33 Stormwater Culverts ..........................................................................................................60
Figure 34 Headwalls .........................................................................................................................61
vi | NSW Office of Water, June 2014
Contents
Tables
Table 1 Water Mains uPVC ............................................................................................................11
Table 2 Water Mains - DICL ..............................................................................................................12
Table 3 Water Mains - Steel ..............................................................................................................13
Table 4 Water Pumping Stations and Bores ......................................................................................14
Table 5 Water Treatment Works........................................................................................................16
Table 6 Water Chlorinators ...............................................................................................................17
Table 7 Fluoridation Plants................................................................................................................18
Table 8 Water Service Reservoirs .....................................................................................................20
Table 9 Sewer Mains ........................................................................................................................21
Table 10 Sewage Pumping Stations ..................................................................................................23
Table 11 Sewage Treatment Works - Siteworks ................................................................................25
Table 12 Sewage Treatment Works - Preliminary Treatment .............................................................26
Table 13 Sewage Treatment Works - Sludge Lagoons & Effluent Ponds ...........................................29
Table 14 Sewage Treatment Works - Intermittent Decanted Extended Aeration (IDEA) .....................31
Table 15 Sewage Treatment Works - UV Disinfection........................................................................33
Table 16 MBR Sewage Treatment Works.........................................................................................34
Table 17 Additional Costs for Construction Difficulty, Rock Excavation and Dewatering .....................35
Table 18 Stormwater Mains...............................................................................................................36
Table 19 Stormwater Pits ..................................................................................................................37
Table 20 Stormwater Culverts ...........................................................................................................38
NSW Office of Water, June 2014 | vii
Abbreviations
Abbreviations
AC
Asbestos Cement
CI
Cast Iron
CICL
Cast Iron Cement Lined
CPI
Consumer Price Index
DIA
Diameter
DICL
Ductile Iron Cement Lined
EA
Extended Aeration
EP
Equivalent Persons
FRC
Fibre Reinforced Cement
IDEA
Intermittent Decanted Extended Aeration
GST
Goods and Services Tax
kW
Kilowatt
L/s
Litres per second
Million
Metre
MBR
Membrane Bioreactor sewage treatment works
MEERA
Modern Engineering Equivalent Replacement Asset
ML
Megalitre
M&E
Mechanical and Electrical
NOW
NSW Office of Water
NWI
National Water Initiative
O&M
Operation and Maintenance
OTR
Other Than Rock
PVC
Polyvinyl Chloride
RC
Reinforced Concrete
RCP
Reinforced Concrete Pipe
SID
Survey, Investigation, Design and Project Management
uPVC
Unplasticised Polyvinyl Chloride
UV
Ultra-violet irradiation
VC
Vitrified Clay
viii | NSW Office of Water, June 2014
Executive Overview
1. Executive Overview
1.1. Best-Practice Management Framework
The NSW Governments Best-Practice Management of Water Supply and Sewerage Framework
(page 4) has been developed as a practical means of implementing the Goal of the Governments
3
4
Country Towns Water Supply and Sewerage Program . The Framework is the key driver for reform
of planning, pricing and management for continuing productivity improvement by each utility. It
consolidates earlier initiatives and involves 6 elements:
Integrated Water Cycle Management
Strategic business planning and financial planning

Pricing and regulation of water supply, sewerage and trade waste (including pay-for-use water
pricing, strong pricing signals, full cost recovery, commercial sewer usage, trade waste and
developer charges and a trade waste regulation policy).
Water conservation and demand management
Drought management
Annual performance monitoring5 including annual
Performance Monitoring Report Statewide performance and key performance

indicators
Benchmarking Report benchmarking data and performance trends over the last
6 years
2-page triple bottom line (TBL) Performance Report from the NSW Office of Water for
each utility and
Action Plan by each utility.
The outcome of a local water utility (LWU) implementing the 19 requirements of the Best-Practice
6
7
Management Guidelines is appropriate , affordable and cost-effective services to meet community
needs while protecting public health and the environment.
Utilities which have implemented the requirements of the NSW Best-Practice Management Framework
have also implemented the 9 national requirements shown in Figure 1 on page 4.
1.2. Purpose of Reference Rates Manual

This 2014 Reference Rates Manual updates the 2003 edition of the manual and has been prepared by
8
the Urban Water branch of the NSW Office of Water. LWUs are required to determine the fair value of
their water supply, sewerage and stormwater assets in accordance with this Manual.
3
4
5
6
7
Appropriate, affordable and cost-effective water supply and sewerage services in urban areas of regional
NSW which meet community needs and protect public health and the environment.
The Framework is based on the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007
(available at www.water.nsw.gov.au).
Refer to Section 14 and Appendix G of NSW Water & Sewerage Strategic Business Planning Guidelines,
July 2011 (available at www.water.nsw.gov.au).
Ie. fit for purpose, without wasteful gold plating.
Effective and efficient services including appropriate use of modified standards for small communities,
eg. National Handbook on Affordable Water Supply and Sewerage for Small Communities, ARMCANZ/WSAA,
1999.
Valuations are on a MEERA - Modern Engineering Equivalent Replacement Asset basis.
In accordance with the Australian Accounting Standards Boards AASB116 Property, Plant and Equipment,
infrastructure assets are to be valued at fair value. It is noted that there are no material practical differences
NSW Office of Water, June 2014 | 1
Executive Overview
The manual was first published in June 2003 and since that time the Office of Water has published an
annual update of Attachment 1 on page 62 to reflect changes in the construction cost index due to
inflation and also to reflect changes in the construction industry. However, together with these annual
changes, there have also been substantial changes in the prices for some of the infrastructure
included in the manual (note 2 on page 10). This 2014 Manual has been prepared to reflect these
price movements.
The Reference Rates shown are based on competitive contract prices obtained by NSW Public Works
for water supply and sewerage projects within NSW, supplemented by published rates for water
supply, sewerage and stormwater works and also rates obtained from a number of LWUs and other
agencies (page ii).
The manual will assist NSW LWUs in implementing two requirements:
(1) Determining the fair value and current replacement cost depreciation for their water supply,
sewerage and stormwater assets. These must be reported in each LWUs annual financial
9,10
statements, including Special Schedule Nos 3 to 6 .
(2) As part of best-practice management of water & sewerage businesses each LWU is required
11
to prepare a 20 to 30-year capital works program as part of its strategic business plan .
These requirements involve estimating the capital cost of existing and future water supply, sewerage
and stormwater assets on a MEERA8 basis.
The Reference Rates in this manual apply to the capital cost of works such as pipelines, service
reservoirs, pumping stations and treatment works but not to works such as dams, weirs, river intakes,
tunnels and outfalls where the cost is dependant on the particular site. For these site-specific works a
separate valuation would be required, as discussed in section 2.8 on page 9.
Page 74 of the Division of Local Governments Planning and Reporting Manual 2010 identifies the
asset management planning requirements for water supply and sewerage:
There are specific asset management planning requirements for water supply and
sewerage. They require compliance with the Best-Practice Management of Water Supply
and Sewerage Guidelines 2007 and the NSW Reference Rates Manual for Valuation of
Water Supply, Sewerage and Stormwater Assets. Further guidance for councils is
12
provided in the Water Supply and Sewerage Asset Management Guidelines 1991.
These requirements include the need to prepare an Asset Register, a 20 to 30 year
Operation Plan, Maintenance Plan and a Capital Works Plan which identifies the required
renewals, works for improved levels of service and works for serving new growth.
Councils must continue to meet these asset management planning requirements for their
water supply and sewerage infrastructure.
10
11
12
between fair value and deprival value in the valuation of physical non-current assets such as water supply,
sewerage and stormwater drainage (refer to Appendix E of Accounting Policy: Valuation of Physical NonCurrent Assets at Fair Value, tpp 07-1, NSW Treasury, April 2007 (available at www.treasury.nsw.gov.au)).
Note although tpp 07-1 has been amended by Treasury Circulars NSW TC 12/05 and 10/07, the amendments
do not affect Appendix E of the Accounting Policy.
Local Government Code of Accounting Practice and Financial Reporting, Division of Local Government, NSW
Department of Premier and Cabinet, June 2013 (available at www.dlg.nsw.gov.au).
It is important to note that all 30 National Water Initiative (NWI) financial performance indicators are
independently audited annually for each NSW local water utility. These are reported in Notes 2 and 3 of the
Special Purpose Financial Reports to each LWUs annual financial statements.
NSW Water and Sewerage Strategic Business Planning Guidelines, NSW Office of Water, 2011 (available at
www.water.nsw.gov.au).
Updated guidance is available in Section 10 of the above Strategic Business Planning Guidelines.
2 | NSW Office of Water, June 2014
Executive Overview
1.3. Use of Reference Rates for Existing Assets

To obtain the fair value of assets, the current replacement cost using the Reference Rates should be
reduced to reflect the portion of the useful life of the asset that has been used up. Attachment 2 on
13
page 64 provides typical useful lives for water and sewerage assets . It is expected that these would
14
be used for calculating the fair value and the current replacement cost depreciation of assets, except
for assets where the LWU has prepared detailed estimates of useful life. Similarly, where a LWU has
access to suitable recent contract prices, it is encouraged to use such local data for its valuations.
The Reference Rates quoted are estimates for June 2014 valuation of the capital cost of existing
assets, and exclude contingencies and the Goods and Services Tax (GST).
LWUs are required to annually index their asset values in the years between full revaluations using the
annual construction cost index shown on page 62 of Attachment 1. Such annual indexing is necessary
15
in order to avoid understating asset values and depreciation. The NSW Office of Water will continue
to update Attachment 1 annually.
1.4. Use of Reference Rates for Future Works

The Reference Rates are also suitable for estimating the capital cost of future works, where specific
cost estimates are not available - eg. in the early stages of a project, before completion of
investigation reports and concept designs. For such future works, LWUs must add an appropriate
contingency amount to the Reference Rates in accordance with section 2.5 on page 7.
A more detailed estimate would normally be warranted at the concept or detailed design stage. Such
an estimate would also take account of the prevailing market conditions. These Reference Rates may
be used for estimating the capital cost of assets required to service new development, in which case
the contingency amount may not exceed 20%.
1.5. Related Publications

This manual complements other guidelines published 16 by the NSW Office of Water including:
Best Practice Management of Water Supply and Sewerage Guidelines, 2007;
NSW Water and Sewerage Strategic Business Planning Guidelines, 2011;
Liquid Trade Water Regulation Guidelines, 2009;
2012-13 NSW Water Supply and Sewerage Performance Monitoring Report ; and
2012-13 NSW Water Supply and Sewerage Benchmarking Report.
17
Other guidelines proposed to be updated by the NSW Office of Water in 2014 are:
13
14
15
16
17
18
NSW Water and Sewerage Community Involvement Guidelines; and
FINMOD User Manual .
18
Including relined water mains and relined sewerage mains.

Refer to note 10 on page 21 in regard to the depreciation of sewer mains.
Such understating of asset values and depreciation may lead to failure to fully recover costs as required by
National Competition Policy and the NSW Best-Practice Management Framework (page 4).
Available at www.water.nsw.gov.au.
Other software, guidelines and training for LWUs developed by the NSW Office of Water are shown on
page 15 of the 2012-13 NSW Water Supply and Sewerage Performance Monitoring Report.
The NSW Office of Water will continue to provide the FINMOD User Manual to all licensed users of the
FINMOD software (NSW Financial Planning Model).

#
Emerging issues addressed & corrective action implemented

following each LWU's annual TBL performance review
Implement NSW Framework+ for Regulation of Sewerage & Trade

Waste
Sound Pricing* including:

- Development Servicing Plan (DSP) &
- Trade Waste Regulation Policy
Annual TBL Performance Report &
Action Plan to Council
Drinking water quality is fit for purpose
Fair pricing of services, appropriate water & sewerage tariffs, full cost
recovery, strong pricing signals to encourage efficient use of services
Sustainable water supply & sewerage implemented
Exposure to drought & climate variability mitigated
Best-value IWCM scenario identified on Triple Bottom Line (TBL) basis
Outcomes
Drinking Water Management System++

- National Certification Framework+++
for Water Treatment Operators
20 to 30-year Strategic Business Plan

including:
- Total Asset Management Plan
(TAMP)
- Financial Plan (FP) with Typical
Residential Bills in current dollars
- Drought Management Plan
30-year IWCM Strategy including

Water Conservation Measures
Outputs
+ This NSW Framework is a preventative risk management approach for

++ Required by September 2014 (Public
the effective and efficient use of the sewerage system, which is a
Health Act 2010), in accordance with
common pool resource. The Framework involves:
NSW guidelines for drinking water
- A sound trade waste regulation policy, approval conditions.
management systems, NSW Health/
- Commercial developer charges - fair share of infrastructure costs.
NSW Office of Water, 2013.
- Full cost recovery, sewer usage and trade waste charges;
+++ Over 300 LWU water treatment
non-compliance trade waste usage and excess mass charges.
operators meet the National
- Monitoring, mentoring and coaching of dischargers.
Certification requirements.
- Enforcement, penalty notices under POEO Act 1997 or LG Act 1993.
#
The Strategic Business Plan is a utility's peak
- Disconnection of a trade waste discharger in the event of persistent
planning document for water supply and sewerage.
failure to comply with approval conditions.
- Security of Water Supply

- Environmental Management
- Sewer Backlogs
- Quality Management Plan
- Work Health & Safety
- Community Involvement
- Business Continuity
- Other Risk Management Measures
Other Considerations
6. Performance Monitoring
5. Pricing and Regulation of Water

Supply, Sewerage and Trade
Waste
4. Drought Management
3. Strategic Business Planning # (SBP)
2. Water Conservation
1. Integrated Water Cycle

Management (IWCM)
BPMG Elements
Figure 1 NSW Best-Practice Management of Water Supply and Sewerage Framework
Appropriate, affordable and cost-effective water supply and sewerage services in urban areas of regional NSW which meet community needs and protect public health and the environment.
CTWSS PROGRAM GOAL:
IWCM Strategy (2) - this is a requirement for each of water supply and sewerage, Strategic Business Plan (2), Water Conservation, Drought Management and Performance Monitoring (2) and the following
11 Pricing* Requirements - Full Cost Recovery (2), appropriate residential charges (2), appropriate non-residential charges (2), Development Servicing Plan (DSP) with commercial developer charges (2), at least
75% of residential revenue from water usage charges, appropriate trade waste regulation policy and approvals, and appropriate trade waste fees and charges.
Note that the NSW Government's Best-Practice Management of Water Supply and Sewerage Framework is the practical means of implementing the Goal of the NSW Government's Country Towns Water Supply and
Sewerage (CTWSS - www.water.nsw.gov.au) Program by the regional NSW local water utilities (LWUs). The Framework assures sound long-term planning and asset management, appropriate levels of service and
community involvement, sound service pricing and affordable water and sewerage services. Each utility needs to closely involve its community in the utility's implementation of the following
nineteen (19) requirements of the NSW Best-Practice Management Framework:
- COAG Strategic Framework for Water Reform

- National Competition Policy
- Australian Drinking Water Guidelines, 2011
- National Water Initiative
- National Peformance Reporting
- Sewage Quality Management Framework
- National Urban Water Planning Principles
- NWI Urban Water Reforms
- NWI Pricing Principles
National Requirements
NSW BEST-PRACTICE MANAGEMENT OF

WATER SUPPLY AND SEWERAGE
GUIDELINES, 2007 (BPMG)
(www.water.nsw.gov.au)
Guidelines
NSW Best-Practice Management of Water Supply and Sewerage Framework
Executive Overview
Basis of Reference Rates

2. Basis of Reference Rates

2.1. General
The sources used to determine the 2014 Reference Rates shown in this manual are competitive
contract prices obtained by NSW Public Works for water supply, sewerage and stormwater projects
within NSW together with data obtained from Local Water Utilities (LWUs) and other NSW agencies,
supplemented by published rates where available for water supply, sewerage and stormwater works.
Sources of rates are acknowledged on page ii.
The Reference Rates Tables included in this manual are listed in section 3 on page 10. The tables
show both the contract rate and the reference rate for the capital cost of the following assets:
WATER SUPPLY (page 11)
Water Mains
Water Pumping Stations (Distribution)
Water Treatment Works
Service Reservoirs
SEWERAGE (page 21)
Sewer Mains
Sewage Pumping Stations
Sewage Treatment Works
STORMWATER (page 36)
Stormwater Mains
Stormwater Pits
Stormwater Culverts
2.2. Reference Rates

The Reference Rates are made up of a "Contract Rate", plus allowance for SID (survey, investigation,
design and project management) for the capital cost of each asset. Contingencies are not included.
Contract Rate - the prime cost to construct the asset determined from prices obtained from
competitive tenders (section 2.3 on page 6), plus
SID - a percentage increase to be applied to the Contract Rate to allow for survey,
investigation, design and project management (section 2.4 on page 6).
As indicated in section 1.4 on page 3, a contingency amount should be added to the Reference Rates
in preparing cost estimates for future works (section 2.5 on page 8). However, as contingencies are
considered to be not warranted for the valuation of existing assets, they are not included in the
Reference Rates (page 8).

Figures showing the Contract Rates for the capital cost of each facility (ie. excluding SID) versus
key characteristics, such as storage capacity for a service reservoir are also provided in section 5 on
page 45. These figures have been determined by drawing a curve of best fit through the available data
points. The curve was then used as the basis for determining the Contract Rates and the Reference
Rates (which include SID) presented in the tables shown in section 3 on page 10.
As noted above, the Reference Rates are a 'general' guide covering the whole of NSW and have been
determined from a generalised curve fitted through the available data points. For some assets the
range of available prices is large and therefore the Reference Rates should be applied with caution,
with due allowance for local or site-specific conditions and for specific projects. As noted in section 1.3
on page 3, where a LWU has access to suitable recent contract prices, it is encouraged to use such
local data for its valuations.
2.3. Contract Rates

The "Contract Rate" is the estimated prime cost for constructing an asset. It is based on competitive
contract prices obtained by NSW Public Works for water supply, sewerage and stormwater projects
within NSW, together with data obtained from Local Water Utilities (LWUs) and other NSW agencies,
supplemented by published rates where available for water supply, sewerage and stormwater works.
It is important to note that only data from substantial contracts (eg. those with long lengths of pipe
consisting of several kilometres of mains) have been used to compile these rates. The rates shown in
the following tables do not apply to minor works (eg. short lengths of mains renewals).
The Contract Rate is an all up" rate which includes some allowance for ancillary works associated
with the asset (eg. the rate for sewer reticulation includes an allowance for access chambers (or
maintenance holes), sidelines, sewer risers and road crossings). However significant additional costs
may need to be added to allow for assets with unusual construction difficulty, rock excavation or for
unusual contracts including dewatering etc. These are explained in section 2.7 on page 8.
The Contract Rates do not include operation or maintenance costs.
2.4. Survey, Investigation, Design & Project Management (SID)

The Survey, Investigation, Design and Project Management (SID) component of a project varies with
the complexity, size and the technology involved in the project. A complex project or a project with
"state of the art" technology will require greater inputs both in design and management than a
conventional project.
The SID component can vary from 5% to 20% and some typical SID allowances are shown below:
Water and sewerage mains
10%
Service reservoirs, pumping stations
15%
Water or sewage treatment works
20%
A suggested value for the SID component is provided in the notes below the Table of rates for each
type of asset.

2.5. Contingencies
Contingencies are required to allow for risk or uncertainty in the estimate. Uncertainty can be due to
inherent risk (uncertainty in the scope of work and uncertainty in the estimated cost of the assets
within the scope of work) or contingent risk (uncertainty due to additional costs which are beyond the
control of the designer or constructor).
Inherent risk is dependent on the type of asset and also the stage at which the estimate is
undertaken. It will be higher at earlier stages (eg. feasibility) where there is less definition of the scope
of works and costs must be applied with less knowledge of unknowns (eg. site conditions). Inherent
risk includes the following:
Uncertainty in the scope of work. There will be greater uncertainty at earlier stages in design,
where there is only a broad outline of the scope of work. This will result in a greater
uncertainty in the quantities.
Uncertainty in the costs to be applied. A complex or high tech asset will generally have
greater uncertainty in the costs. Also, at earlier stages of design, costing will necessarily be
an all up rate with less detail known of the assets involved which will result in a greater
uncertainty.
Uncertainty in site conditions (eg. unexpected rock, groundwater or other services). This will
be greater at earlier stages where less investigation has been carried out.
It is suggested that the following approximate percentages may be suitable for inherent risk.
Feasibility stage - 30%,
Concept design stage - 20%,
Preliminary design stage - 15%,
Detailed design stage - 10%.
However, the primary purpose of this manual is for valuation of existing assets and for this case it is
considered reasonable to assume that the inherent risk is zero (ie. the scope of works is accurately
defined and the estimated asset costs are within acceptable limits).
Contingent risk (factors beyond the control of the designers or constructors). These include:
industrial issues;
adverse weather;
availability of labour and materials; and
extensions of time due to unforeseen construction problems or site conditions;
The percentage to be applied for contingent risk is dependent on each site and the conditions
prevailing at the time.

Existing Assets a contingency allowance is not warranted as it is considered that both the inherent
risk and the contingent risk for such assets are minimal. No contingency allowance has therefore been
included in the Reference Rates.
Future Assets a contingency allowance should be included in accordance with the above and
section 1.4 on page 3. The contingency allowance for future works required within 10 years must not
exceed 20 per cent. The Reference Rates should be increased by adding the above contingency
allowance to the Reference Rates.
2.6. Estimates Based on these Reference Rates

The Reference Rates shown in this manual have been determined by multiplying the Contract Rates
by a factor corresponding to the allowance for SID (eg. 1.15 for 15% SID). The Reference Rates have
then been rounded to an appropriate number.
These Reference Rates are intended for valuation of existing assets. For the valuation of future works,
a contingency amount should be added to the Reference Rates in accordance with section 1.4 on
page 3 and section 2.5 on page 7.
The Reference Rates for water supply, sewerage and stormwater mains shown in this manual may
also need to be increased to allow for construction difficulty, rock excavation or other factors as
indicated in section 2.7.
It should be noted that the Reference Rates are a 'general' guide covering the whole of NSW. They
should be applied with due allowance for local and site-specific conditions and for specific projects.
Refer also to section 1.3 on page 3.
The capital cost estimates for some projects (eg. treatment works, pumping stations and service
reservoirs) may also need to include the cost of additional factors such as:
land acquisition
provision of power and data connections to remote sites
access roads
significant environmental constraints
fencing and landscaping
These latter factors are not included in the rates provided in this manual.
2.7. Additional Costs for Rock Excavation and Construction

Difficulty
The Reference Rates for water mains, sewer mains and stormwater mains in this manual are for
"normal" conditions (ie. typical residential areas). Where the mains are constructed in congested urban
areas (eg. town centres) or where there is rock or groundwater, additional costs may be required.
These additional costs arise from factors such as:
Rock excavation
Construction difficulty including

traffic control
congestion/relocation of existing services
restricted access
special compaction and restoration under roads
particular environmental requirements
Dewatering
These factors, particularly construction difficulty, can add significantly to the capital cost of the water,
sewer or stormwater main and should be considered carefully. A guide to these additional costs is
given in Table 17 on page 35.
2.8. Site-Specific Works

Valuation of site-specific water supply works such as dams, weirs and tunnels are heavily dependent
on the type of asset (eg. type of dam) and the particular site conditions. In addition, the impact of new
technology may affect the type and cost of the asset. For example, a concrete gravity dam or an
embankment dam may be replaced at lower cost by a roller compacted concrete dam.
Similarly, provision should be made for site-specific stormwater works such as flood retarding basins,
gross pollutant traps or wetlands.
It is suggested that generally the asset be valued as described in (a) below. However, as upgrading or
replacement of the asset becomes imminent, a more detailed estimate will be warranted. The
suggested valuation process is as follows:
(a) Generally it would be reasonable to estimate the current cost of the asset by indexing the
historic capital cost of the asset using the construction cost indices in Attachment 1 on
page 62. Alternatively, where a more detailed estimate is warranted, a valuation can be
carried out as indicated for (b) below.
(b) When upgrading or replacement of the works becomes imminent, the valuation should be
based on a conceptual design for the works providing the required service, using up to
date technology and current unit rates.
Reference Rates Tables

3. Reference Rates Tables

Reference Rates for the valuation of water supply, sewerage and stormwater assets are shown in the
following Tables:
Table
Page
Water Mains uPVC
11
Water Mains - DICL
12
Water Mains - Steel
13
Water Pumping Stations and Bores
14
Water Treatment Works
16
Water Chlorinators
17
Fluoridation Plants
18
Water Service Reservoirs
20
Sewer Mains
21
10
Sewage Pumping Stations
23
11
Sewage Treatment Works - Siteworks
25
12
Sewage Treatment Works - Preliminary Treatment
26
13
Sewage Treatment Works - Sludge Lagoons & Effluent Ponds
29
14
Sewage Treatment Works - Intermittent Decanted Extended Aeration (IDEA)
31
15
Sewage Treatment Works - UV Disinfection
33
16
MBR Sewage Treatment Works
34
17
Additional Costs for Construction Difficulty, Rock Excavation and Dewatering
35
18
Stormwater Mains
36
19
Stormwater Pits
37
20
Stormwater Culverts
38
GENERAL NOTES
1.
The rates shown are for June 2014 valuation of the capital cost of existing assets and exclude
contingencies and the GST. A suitable percentage for contingencies must be included for
valuation of new works (section 2.5 on pages 7 and 8).
2.
The 2014 rates for water, sewer and stormwater mains (Tables 1, 2, 9 and 18), water
treatment works (Table 5), pumping stations (Tables 4 and 10), service reservoirs (Table 8)
and stormwater culverts (Table 20) have increased significantly more than the capital cost
inflation rate since 2003. However, there has not been a significant increase in the real cost of
most other assets (larger steel mains (Table 3), most elements of sewage treatment works
(Tables 11 to 16) and stormwater pits (Table 19)). Capital Cost Indices are shown in
Attachment 1 (page 62). A guide to the increases since 2003 is shown in the notes for each
table.
Contract Rate is the prime cost for construction of the asset based on competitive contract
prices.
3.
4.
Reference Rate = Factor for SID x Contract Rate (ie. no contingencies - refer to section 2.5 on
page 7). For Contract Rates and SID, refer to sections 2.3 and 2.4 on page 6.

Table 1 Water Mains uPVC

(See also Table 17 on page 35 for additional costs)
Diameter
(mm)
Contract Rate
($/m)
2014
Reference Rate
($/m)
2014
Reticulation
uPVC
50
80
100
150
200
250
300
375
56
73
86
127
173
227
291
382
62
80
95
140
190
250
320
420
Trunk Mains
uPVC
80
100
150
200
250
300
375
62
77
105
145
182
227
336
68
85
115
160
200
250
370
NOTES
1.
These rates are for June 2014 valuation of the capital cost of existing assets and exclude
contingencies and the GST. A suitable percentage for contingencies must be included
(section 2.5 on page 8) for valuation of new works.
2.
Review of recent contracts shows that the rates for uPVC trunk mains and reticulation mains
have increased by about 20% above the capital cost inflation rate since 2003. These
increases are not uniform over all size ranges.
Reference Rate = 1.10 x Contract Rate (ie. Contract Rate plus SID of 10%).
3.
4.
5.
6.
7.
8.
9.
10.
Caution: Additional costs apply for mains constructed in congested urban areas (eg. in town
centres), in rock or where dewatering is required (refer Table 17 on page 35).
The rates allow for pipe supply, excavate, lay, backfill, restoration, fittings and thrust blocks.
"Reticulation" rates include an allowance for service connections, isolating valves, hydrants
and restoration for typical urban reticulation.
"Trunk main" rates include air valves, scour valves and isolating valves.
Excavation is in OTR and pipelines are laid to minimum depth.
Pipe material is uPVC Class 12 (for mPVC mains assume 7% reduction in capital cost).
Existing mains of materials that are no longer used should be valued on the basis of
replacement assets (ie. AC mains can be valued as uPVC mains).

Table 2 Water Mains - DICL

Diameter
(mm)
Contract Rate
($/m)
2014
Reference Rate
($/m)
2014
Reticulation
DICL
100
150
200
250
300
375
145
182
227
264
309
391
160
200
250
290
340
430
Trunk Mains
DICL
100
150
200
250
300
375
450
500
600
750
91
136
173
209
264
355
464
536
682
910
100
150
190
230
290
390
510
590
750
1 000
NOTES
1.
2.
Review of recent contracts shows that the rates for DICL reticulation mains have increased by
about 15% above the capital cost inflation rate since 2003, while the rate for DICL trunk mains
has increased above the inflation rate by about 10% for mains up to 250mm, about 25% for
300mm to 450mm and up to 45% for larger mains. These increases are not uniform over all
size ranges.
3.
4.
5.
6.
7.
"Reticulation" rates include an allowance for service connections, isolating valves, hydrants
and restoration for typical urban reticulation.
"Trunk main" rates include air valves, scour valves and isolating valves.
8.
9.

Pipe materials are DICL Class K9.
10.
Existing mains of materials that are no longer used should be valued on the basis of
replacement assets. CI or CICL mains can be valued as DICL mains.

Table 3 Water Mains - Steel

Trunk Mains
Steel
Diameter
(mm)
Contract Rate
($/m)
2014
Reference Rate
($/m)
2014
300
375
450
500
600
750
900
1 050
1 200
400
509
591
655
782
955
1 180
1 500
1 770
440
560
650
720
860
1 050
1 300
1 650
1 950
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
9.
Review of recent contracts shows that the rates for steel trunk mains have increased by
about 50% above the capital cost inflation rate since 2003 for mains up to 600mm. The
increase for 900mm to 1200mm mains was about 5% above the inflation rate. These
increases are not uniform over all size ranges.
The rates include air valves, scour valves and isolating valves.
Pipe materials are steel mains with generally minimum plate thickness.
For valuation of existing steel mains in sizes 300mm to 750mm diameter, use prices for ductile
iron mains (Table 2 on page 12) as these can perform the function of most existing steel
mains and are less costly.

Table 4 Water Pumping Stations and Bores

(Distribution System Pumping Stations does not include River Intakes)
Installed
Power
(kW)
Contract
Rate
($)
2014
Distribution
System Pumping
Station
10
20
30
50
100
200
400
600
800
1 000
1 200
1 400
1 600
70 000
100 000
122 000
165 000
322 000
504 000
826 000
1 190 000
1 565 000
1 910 000
2 350 000
2 740 000
3 130 000
Bores
5
115
130
43 000
248 000
296 000
Civil
M&E
(%)
(%)
31
30
29
28
27
38
36
34
32
30
28
26
25
69
70
71
72
73
62
64
66
68
70
72
74
75
Reference
Rate
($)
2014
80 000
115 000
140 000
190 000
370 000
580 000
950 000
1 370 000
1 800 000
2 200 000
2 700 000
3 150 000
3 600 000
50 000
285 000
340 000
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Review of recent contracts shows that the rates for distribution system pumping stations have
increased by 10% to 35% above the capital cost inflation rate since 2003, while the rate for
bores has increased by about 20%. These increases are not uniform over all size ranges.
Installed power is the total installed motor power, including standby capacity.
This table only applies to distribution system pumping stations. Major additional costs would
apply for pumping stations at river intakes (eg. for inlet training works, river channel works and
flood protection). For pumping stations at river intakes see section 2.8 on page 9.
The rates are based on installation of two pumping machinery sets, each with half of the
installed power for the pumping station. This provides standby capacity where if one pump is
out of action the pumping station would still be able to deliver the required transfer capacity.
For each pumping machinery set, motor power is calculated using the formula :
kW = Q (L/s) x h (m) x 1.1 (pipeline tolerance factor) / 100 x pump efficiency (say 0.8)
For power 100kW the rates are for lower cost, outdoor pumping stations. For units > 100kW
the rates are for centrifugal pumps in an above ground pumping station on a level site.
Includes pipework within pumping station & connection to adjacent supply & delivery mains.
Land acquisition, power supply, data connection, access roads, fencing are not included.
Operation and maintenance costs are not included.

Figure 2 Conventional Water Treatment Works
Figure 3 Lagoon Sedimentation
Figure 4 Lagoon Sedimentation Howlong (Corowa)

Table 5 Water Treatment Works

Capacity
(ML/d)
Contract
Rate
($)
2014
Reference
Rate
($)
2014
Conventional
Water Treatment
0.3
0.5
0.8
1
2
5
10
20
40
50
70
100
958 000
1 420 000
1 920 000
2 170 000
3 670 000
7 000 000
11 700 000
19 200 000
30 800 000
35 800 000
46 700 000
59 200 000
1 150 000
1 700 000
2 300 000
2 600 000
4 400 000
8 400 000
14 000 000
23 000 000
37 000 000
43 000 000
56 000 000
71 000 000
Lagoon
Sedimentation
0.8
1
2
5
10
20
1 420 000
1 580 000
2 670 000
4 920 000
8 080 000
13 300 000
1 700 000
1 900 000
3 200 000
5 900 000
9 700 000
16 000 000
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
(section 2.5 on page 8) for valuation of new works. Refer to the box on page 17 for further
information on the use of lagoon sedimentation for water treatment.
Review of recent contract rates for water treatment works has shown increases of 40% or
more above the capital cost inflation rate since 2003.
The rates include civil, mechanical and electrical costs for both conventional water treatment
works and also for lower cost lagoon sedimentation works.
For treatment works of 5 ML/d, the mechanical. electrical and process components of water
treatment works are each approximately 13% of the Contract Rate, while the civil component
is approximately 60% of the Contract Rate for the water treatment works and includes a clear
water tank with 1 hour's storage capacity.
Excavation is in OTR.
Land acquisition, power supply, data connection, access roads and fencing are not included.

Table 6 Water Chlorinators

Capacity
(ML/d)
Water
Chlorinators
Up to 10
20
40
80
140
Contract
Rate
($)
2014
48 000
53 000
58 000
63 000
68 000
Reference
Rate
($)
2014
57 000
63 000
70 000
76 000
82 000
NOTES
1.
2.
3.
The rates include process and dosing/metering equipment. The capital cost of the
chlorination room is excluded.
4.
The rates shown are for typical water sources in NSW. For water sources with a high organic
load, use the capital cost of chlorinators with twice the required capacity, as higher chlorine
doses will be required.
Land acquisition and power supply are not included.
5.
6.
7.
Lagoon Sedimentation
The Lagoon sedimentation concept for water treatment (refer to Figures 3 and 4 on page 15
and Table 5 on page 16) has been successfully developed and implemented by the NSW
Office of Water and NSW Public Works as a cost-effective means of providing water
treatment for regional NSW. Examples include:
Adelong (3 ML/d, 1996, Tumut), Barham (2 ML/d, 1993, Wakool), Binnaway (1 ML/d,
1993, Warrumbungle), Boorowa (3 ML/d, 1993, Boorowa), Buronga/Gol-Gol/Dareton
(4 ML/d, 1994, Wentworth), Coonabarabran (8 ML/d, 1993, Warrumbungle),
Coonamble (8 ML/d, under construction, Coonamble), Dorrigo (3 ML/d, 1993,
Bellingen), Geurie (2 ML/d, 1994, Wellington), Howlong (5 ML/d, 1989, Corowa),
Mendooran (1 ML/d, 2009, Warrumbungle), Murrami (0.3 ML/d, 1993, Leeton),
Nundle (1 ML/d, 1995, Tamworth), Pooncarie (0.2 ML/d, 1994, Wentworth),
Tottenham (1 ML/d, 1994, Lachlan) and Wellington (15 ML/d, 1993, Wellington).
Table 5 on page 16 shows that the capital cost of lagoon sedimentation is about 70% of the
capital cost of a conventional water treatment works.

Table 7 Fluoridation Plants

Capacity
(ML/d)
Fluoridation
Plants
Up to 5
10
20
40
80
100
Contract
Rate
($)
2014
92 000
108 000
158 000
217 000
308 000
350 000
Reference
Rate
($)
2014
110 000
130 000
190 000
260 000
370 000
420 000
NOTES
1.
2.
3.
4.
5.
6.
The rates include dosing/metering equipment and the fluoridation room.
Land acquisition and power supply are not included.

Figure 5 Standpipe Service Reservoir, Collarenebri (Walgett)
Figure 6 Ground Level Service Reservoir, Murwillumbah (Tweed)

Table 8 Water Service Reservoirs

Storage
(ML)
Contract
Rate
($)
2014
Reference
Rate
($)
2014
Steel Reservoirs
0.5
1
2
4
5
8
10
15
20
30
343 000
513 000
730 000
1 000 000
1 150 000
1 570 000
1 830 000
2 480 000
3 040 000
4 000 000
395 000
590 000
840 000
1 150 000
1 320 000
1 800 000
2 100 000
2 850 000
3 500 000
4 600 000
Concrete Reservoirs
0.1
0.2
0.4
0.5
1
2
4
5
8
10
15
20
55 000
91 000
200 000
274 000
470 000
870 000
1 650 000
1 910 000
2 700 000
3 040 000
3 610 000
3 910 000
63 000
105 000
230 000
315 000
540 000
1 000 000
1 900 000
2 200 000
3 100 000
3 500 000
4 150 000
4 500 000
Steel Standpipes
0.5
1
2
3
4
374 000
548 000
870 000
1 090 000
1 290 000
430 000
630 000
1 000 000
1 250 000
1 480 000
NOTES
1.
2.
3.
4.
Review of recent contracts shows that rates for steel reservoirs have increased by about 15%
above the capital cost inflation rate since 2003, while concrete reservoirs have increased by
about 50% and steel standpipes by about 20%. The increases are not uniform over all sizes.
The rates include foundation excavation, roofing, restoration, pipework, isolating valves and
scour valves. Control valves (eg. motorised butterfly valves, altitude control valves) are
not included.
5.
"Standpipe" reservoirs are steel reservoirs which are taller than they are wide (Figure 5 on
page 19).
6.
A reservoir roof is assumed to be approximately 15% of the total capital cost while retrofitting
a roof to a concrete reservoir is assumed to be approximately 20% of the total capital cost.
7.
For asset valuation, depreciation should be calculated separately for the roof and for the
reservoir structure.
8.
9.

Table 9 Sewer Mains

Dia
(mm)

Contract
Rate
Min depth
($/m)
Reference Rate
Min depth
($/m)
1.53m deep
($/m)
3-4.5m deep
($/m)
>4.5m deep
($/m)
2014
2014
2014
2014
2014
Reticulation
100
150
225
300
375
450
500
600
136
159
218
327
450
586
686
855
150
175
240
360
490
645
750
940
216
248
320
430
590
738
830
1 030
315
348
432
570
705
865
970
1 180
400
440
550
675
820
970
1 090
1 290
Trunk Mains
150
225
300
375
450
500
600
750
150
200
300
409
518
605
768
1 010
165
220
330
450
570
665
845
1 110
253
315
427
553
670
775
1 000
1 340
340
410
520
660
775
885
1 110
1 450
420
505
615
765
880
990
1 220
1 570
Rising Mains
(DICL)
100
150
200
250
300
375
450
500
600
750
105
145
173
214
269
364
459
527
670
871
115
160
190
235
295
400
505
580
740
960
NOTES
1.
2.
Review of recent contracts shows that rates for sewer mains have increased above the capital
cost inflation rate since 2003 as follows sewer reticulation mains and trunk mains by up to
10% and sewer rising mains (DICL) up to 35%. The increases are not uniform over all sizes.
3.
4.
5.
6.
"Reticulation" rates include an allowance for access chambers (or maintenance holes),
sidelines and restoration.
7.
"Trunk main" rates include an allowance for access chambers (or maintenance holes).
8.
9.
Pipe materials are VC Class Z, AC Class 50, uPVC Class SNB, Concrete Class 2. For uPVC
rising mains, use the values for a water trunk main shown on page 11.
10.
Note that depreciation of sewers should be based on the cost of relining or renewing a sewer,
as these avoid the need for excavation and backfill and are typically about 60% of the cost of
reconstructing a shallow sewer ie. an existing sewer main would be valued at 40% of its
replacement cost at the end of its useful life. For deep sewers, the saving from relining is
correspondingly greater.

Figure 7 In-ground Submersible Pumping Station
Figure 8 In-ground Pumping Station

Table 10 Sewage Pumping Stations

(In-ground Submersible Type with Low Pumping Head)
Flow
(L/s)
Low Head
In-ground
Submersible
10
20
30
40
50
60
80
100
140
180
200
Contract Rate
($)
2014
278 000
365 000
461 000
548 000
626 000
696 000
826 000
930 000
1 130 000
1 300 000
1 390 000
Reference Rate
($)
2014
320 000
420 000
530 000
630 000
720 000
800 000
950 000
1 070 000
1 300 000
1 500 000
1 600 000
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Review of recent contracts shows that rates for sewage pumping stations have increased
significantly (by up to 140%) above the capital cost inflation rate since 2003. These increases
are not uniform over all size ranges.
Caution: The size and type of superstructure can add significant additional costs to the cost of
the pumping station. These rates allow for submersible type pumping stations with low
pumping heads (up to 50m). A superstructure is not included.
The rate includes excavation in OTR, concrete pumping station structure, mechanical and
electrical works and controls, pipework within the pumping station and adjacent above ground
weatherproof switchgear cabinet.
A typical submersible sewage pumping station layout is shown in Figure 7 on page 22.
The rates shown are for Design Flows (ie. Peak Wet Weather Flows).
Land acquisition and provision of power and data connection to the pumping station are not
included.
Emergency storage is not included.

Figure 9 Elements of Preliminary Treatment
Figure 10 Mechanically Raked Bar Screen (left) and Grit Channel and Flume (right).

Table 11 Sewage Treatment Works - Siteworks

(For Preliminary Treatment see Table 12 on page 26, for Sludge Lagoons & Effluent Ponds see
Table 13 on page 29, for Aeration Tanks see Table 14 on page 31, for UV Disinfection see Table 15
on page 33)
EP
Siteworks
(Local fencing,
power and water
within the site,
roadworks within
the site,
amenities)
(EP x 1000)
Contract Rate
($)
2014
2
4
8
12
15
20
30
283 000
400 000
583 000
683 000
750 000
892 000
1 125 000
Reference Rate
($)
2014
340 000
480 000
700 000
820 000
900 000
1 070 000
1 350 000
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
Review of recent contracts shows that the increase in rates for sewage treatment works
siteworks has remained similar to the capital cost inflation rate since 2003.
The rate for sewage treatment consists of:
Siteworks (common to all treatment processes) +
(Prelim Treatment +/or Sludge Lagoons +/or Effluent Ponds +/or Filtration +/or Aeration +/or
UV Disinfection) ie. select the relevant processes and add to Siteworks. Other treatment
processes (sand filtration, chemical nutrient reduction etc.) should be estimated separately
and also added.
Refer also to the examples on pages 42 and 43.
Elements of preliminary treatment are illustrated in Figures 9 and 10 on page 24.
Land acquisition, power supply to the site, data connection, access roads to the site and
fencing around the site are not included.

Table 12 Sewage Treatment Works - Preliminary Treatment

(For Siteworks see Table 11 on page 25, for Sludge Lagoons & Effluent Ponds see Table 13 on
page 29, for Aeration Tanks see Table 14 on page 31, for UV Disinfection see Table 15 on page 33)
EP
(EP)
Contract Rate
($)
2014
Reference Rate
($)
2014
Mechanised
Treatment
8 000
12 000
15 000
20 000
30 000
1 042 000
1 292 000
1 375 000
1 580 000
2 080 000
1 250 000
1 550 000
1 650 000
1 900 000
2 500 000
Nonmechanised
Treatment
2 000
4 000
8 000
12 000
15 000
79 000
100 000
166 000
200 000
242 000
95 000
120 000
200 000
240 000
290 000
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
Review of recent contracts shows that the increase in rates for sewage treatment works
preliminary treatment (both mechanised and nonmechanised treatment) has remained similar
to the capital cost inflation rate since 2003.
(Prelim Treatment +/or Sludge Lagoons +/or Effluent Ponds +/or Filtration +/or Aeration +/or
UV Disinfection)
ie. select the relevant processes and add to Siteworks.
Other treatment processes (sand filtration, chemical nutrient reduction etc.) should be
estimated separately and also added.
Elements of preliminary treatment are illustrated in Figures 9 and 10 on page 24.
Land acquisition, power supply to the site, data connection, access roads to the site and
fencing around the site are not included.

Figure 11 Typical Sludge Lagoon
Figure 12 Typical Sludge Lagoon, Shoalhaven Heads NSW

Figure 13 Aerated Lagoon, Cobar NSW
Figure 14 Intermittent Extended Aeration Tanks (IDEA), Port Macquarie NSW
Figure 15 Box Intermittent Extended Aeration Tanks (IDEA), Bathurst NSW


Table 13 Sewage Treatment Works - Sludge Lagoons & Effluent Ponds

(For Siteworks see Table 11 on page 25, for Preliminary Treatment see Table 12 on page 26, for
Aeration Tanks see Table 14 on page 31, for UV Disinfection see Table 15 on page 33)
EP
Contract
Rate
($)
2014
Reference
Rate
($)
2014
Sludge Lagoon
No Mechanical Dewatering
2 000
4 000
8 000
12 000
15 000
192 000
290 000
483 000
658 000
750 000
230 000
350 000
580 000
790 000
900 000
Sludge Lagoon
Mechanical Dewatering
12 000
15 000
20 000
30 000
1 140 000
1 230 000
1 420 000
1 670 000
1 370 000
1 480 000
1 700 000
2 000 000
Effluent Pond
2 000
4 000
8 000
12 000
15 000
192 000
292 000
483 000
658 000
750 000
230 000
350 000
580 000
790 000
900 000
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
Review of recent contracts shows that rates for sludge lagoons (no mechanical dewatering)
have increased by as much as 100% above the capital cost inflation rate since 2003, while the
rate for sludge lagoons (mechanical dewatering) has not increased and the increase for
effluent ponds is less than the capital cost inflation rate since 2003 by 15 to 35%. These
changes are not uniform over all size ranges.
(Prelim Treatment +/or Sludge Lagoons +/or Effluent Ponds +/or Filtration +/or Aeration +or
UV Disinfection)
Sludge Lagoons are illustrated in Figures 11 and 12 on page 27. Figure 13 on page 28 shows
an aerated lagoon.
Land acquisition is not included.

Figure 16 Intermittent Decanted Extended Aeration (IDEA) Channel

The intermittent decanted extended aeration (IDEA) process is a variation of the activated sludge
process. It does not include preliminary treatment. Three aeration tank configurations are frequently
used in NSW:
Aeration Channel (Pasveer Channel P1000, P2000) a shallow concrete lined, continuous
channel in sizes 500 ep to 2000 ep. The aerators are brush type surface aerators, consisting
of two independent rotors mounted on floats. There is usually no pretreatment with this
process.
Aeration Box (Bathurst Box B4000) a rectangular concrete tank is used instead of a
continuous channel, in sizes 2000 and 4000 ep. The aerators are pontoon mounted vertical
shaft mechanical aerators.
Aeration Tank (Port Macquarie Tank) concrete lined earth tanks in sizes 4000 ep to 20 000
ep. Aerators are float mounted similar to a Bathurst Box.
A variation of the IDEA process is the continuous EA process which includes a clarifier to separate
solids and liquids and a sludge return. The solids are recirculated and the liquids are drawn-off.
Figure 17 Typical Intermittently Decanted Extended Aeration Tank


Table 14 Sewage Treatment Works - Intermittent Decanted Extended Aeration (IDEA)

(For siteworks see Table 11 on page 25, for Preliminary Treatment see Table 12 on page 26, for
sludge and effluent ponds see Table 13 on page 29, for UV disinfection see Table 15 on page 33.
Does not include filtration, phosphorus removal or clarifier.)
EP
Contract
Rate
($)
2014
Mech
Elec
(%)
(%)
Reference
Rate
($)
2014
Single Unit
1 000
2 000
4 000
8 000
12 000
15 000
625 000
1 100 000
1 830 000
3 080 000
4 330 000
5 080 000
46
46
46
46
46
46
12
12
12
12
12
12
750 000
1 320 000
2 200 000
3 700 000
5 200 000
6 100 000
Double Unit
4 000
8 000
12 000
15 000
20 000
30 000
2 170 000
3 250 000
4 500 000
5 330 000
6 500 000
8 420 000
46
46
46
46
46
46
12
12
12
12
12
12
2 600 000
3 900 000
5 400 000
6 400 000
7 800 000
10 100 000
P1000 Unit
1 000
2 000
875 000
1 790 000
50
50
12
12
1 050 000
2 150 000
P2000 Unit
2 000
4 000
8 000
1 790 000
3 080 000
5 500 000
50
50
50
10
10
10
2 150 000
3 700 000
6 600 000
B4000 Unit
4 000
8 000
12 000
2 330 000
4 420 000
5 670 000
33
33
33
8
8
8
2 800 000
5 300 000
6 800 000
Twin B4000 Unit
4 000
8 000
12 000
1 320 000
3 080 000
4 420 000
30
1 580 000
3 700 000
5 300 000
* Typical Mechanical and Electrical costs are shown as a percentage of the Contract Rate
NOTES:
1.
2.
Review of recent contracts shows that rates for aeration tanks, P1000 Units and P2000 Units
have increased by about 10% above the capital cost inflation rate since 2003.
3.
4.
The rate for IDEA sewage treatment consists of:

Siteworks (common to all treatment processes) +(Sludge Lagoons +/or Effluent Ponds +
Aeration Tanks +/or UV Disinfection) ie. select the relevant processes and add to Siteworks.

5.
6.
7.
8.
9.
10.
11.
The IDEA process and terminology is illustrated on page 30. Examples of Aeration Tanks are
shown in Figures 14 and 15 on page 28.
Phosphorus removal is not included. This could add from $200,000 to $500,000 to the
contract cost, depending on the size of the works.
Tertiary filtration is not included in Table 14. Preliminary figures suggest that this can add a
further 15% to the total treatment works cost.
These rates should also be used for existing Trickling Filter and Continuous Aeration
treatment works.

Table 15 Sewage Treatment Works - UV Disinfection

(For siteworks see Table 11 on page 25, for Preliminary Treatment see Table 12 on page 26, for
sludge lagoons and effluent ponds see Table 13 on page 29, for Aeration Tanks see Table 14 on
page 31.)
EP
Contract
Rate
($)
2014
Civil
Works
(%)
Disinfection
Equipment
(%)
UV Disinfection
4 000
8 000
12 000
15 000
20 000
30 000
40 000
80 000
175 000
217 000
267 000
292 000
342 000
442 000
533 000
1 030 000
10
11
12
13
14
14
15
15
90
89
88
87
86
86
85
85
Civil Cost
4 000
8 000
12 000
15 000
20 000
30 000
40 000
80 000
18 000
24 000
32 000
38 000
48 000
62 000
79 000
154 000
Reference
Rate
($)
2014
210 000
260 000
320 000
350 000
410 000
530 000
640 000
1 230 000
21 000
29 000
38 000
45 000
58 000
74 000
95 000
185 000
NOTES:
1.
2.
Review of recent contracts shows that increase in rates for UV Disinfection has been slightly
below the capital cost inflation rate since 2003.
The rate for UV sewage disinfection consists of:
3.
4.
UV Disinfection Equipment + civil cost (for UV disinfection only, for other civil costs see
siteworks below) + Siteworks (common to all treatment processes) +
(Sludge Lagoons +/or Effluent Ponds +/or Filtration or Aeration)
5.
6.
7.

Table 16 MBR Sewage Treatment Works

Capacity (DWF) ML/d
7.9
7.2
0.34
3xADWF
3xADWF
1.1xADWF
1xADWF
3xADWF
Fine screens
only
Included
Fine screens
only
Included
Included
No. of process trains
No. of MBR trains
Biosolids treatment
included
Dewatering
Aerobic digester and

onsite long term
covered storage
No
No
No
UV
UV, chlorination,
large storage tank,
pumping
UV, chlorination,
CCT, storage
tank, pumping,
elevated storage
UV
UV, chlorination,
CCT, pumping
Diversion to
existing
ponds
Balance tank,
diversion to existing
pond
No
No
Balance pond
Pile foundation,
includes demolition
of old plant,
significant fill
Includes feed
pumping station
Compact design
(sewer mining),
no site works,
includes pumping
from sewer
Low temperature
Design wet weather

Inlet works
Effluent facilities
Wet weather
management
Other features
affecting price
Contract Rate ($M)
26
37
32
Reference Rate ($M)
31
44
38
4.6
4.7
NOTES:
1.
2.
3.
Costs include design and commissioning of membrane bioreactor (MBR) sewage treatment
works.
4.
Costs exclude land acquisition, fence, access road, but include internal roads and site
services.
5.
6.
7.

Table 17 Additional Costs for Construction Difficulty, Rock Excavation and Dewatering
Dia
Rock excavation
Trench excavation
(10% rock)
Construction Difficulty
MODERATE
Ie. suburban site
with other services,
residential roads
and traffic control
HIGH
ie. suburban site
with other services,
residential roads
and traffic control
Dewatering
Assuming well point
Dewatering. Note
this may only apply
to part of the length
Contract
Rate
Min depth
($/m)
Reference Rate
Min depth
($/m)
1.5m deep
($/m)
3m deep
($/m)
4.5m deep
($/m)
2014
2014
2014
2014
2014
16
18
18
20
20
24
27
29
34
42
51
33
34
37
39
42
51
57
63
66
86
104
48
51
54
58
63
77
86
95
102
136
157
100
150
200
250
300
375
450
500
600
750
900
5
6
7
8
11
14
17
18
23
34
46
6
7
8
9
12
15
19
20
25
37
51
100
150
200
250
300
375
450
500
600
750
900
37
56
74
93
111
148
184
210
247
321
380
42
61
81
102
122
162
203
231
271
353
407
100
150
200
250
300
375
450
500
600
750
900
74
119
148
184
222
296
380
413
487
641
740
81
131
162
203
244
326
407
457
535
705
814
150
300
500
600
900
93
104
111
123
130
102
115
122
136
142
NOTES
1.
2.
3.
Caution: These are additional costs which should be added to the rates determined from
Table 1 on page 11, Table 2 on page 12, Table 3 on page 13, Table 9 on page 21 and
Table 18 on page 36. These additional costs should be applied with judgement and care since
they may represent a significant part of the total capital cost.

Table 18 Stormwater Mains

Dia
(mm)
Contract
Rate
($/m)
2014
Reference
Rate
($/m)
2014
uPVC
100
150
225
300
375
62
76
125
191
236
68
84
137
210
260
FRC
300
375
450
525
600
750
164
209
273
318
364
509
180
230
300
350
400
560
RCP
300
375
450
525
600
750
900
1 200
1 500
1 800
145
200
273
327
364
482
727
1 180
1 730
2 590
160
220
300
360
400
530
800
1 300
1 900
2 850
NOTES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Review of recent contracts shows that rates for uPVC stormwater mains have increased by
as much as 33% above the capital cost inflation rate since 2003, while the rate for FRC
stormwater mains has increased by up to 35% and the rate for RCP stormwater mains has
increased by up to 25%. These increases are not uniform over all size ranges.
The rates include clearing, supply, excavate, lay, backfill and restoration.
Restoration is assumed to be in the ratio 20% footpath, 20% roadway and 60% lawn.
The rates do not include stormwater pits (see Table 19 on page 37).
The rates do not include tipping or disposal of spoil.
Excavation is in OTR. For rock see Table 17 on page 35.
Pipe materials in Table 18 above are uPVC Class SNB and Concrete Class 2.
Caution: Additional costs apply for mains constructed in congested urban areas, in rock or
where dewatering is required (refer Table 17 on page 35).

Table 19 Stormwater Pits

SIZE
WxB
(mm)
Junction Pit
Ungrated
Grated
Kerb Inlet Pit
Contract
Rate
($/m)
2014
Reference
Rate
($/m)
2014
600 x 600
900 x 900
1 270
1 550
1 400
1 700
600 x 600
900 x 900
1 820
2 090
2 000
2 300
1 550
2 180
2 360
1 700
2 400
2 600
Single Grate
Double Grate 1m Lintel
Double Grate Extended Lintel
NOTES
1.
2.
3.
4.
5.
Review of recent contracts shows that the increase in rates for stormwater junction pits has
remained similar to the capital cost inflation rate since 2003.
The rates include supply, excavate, construct, backfill and restoration.

Table 20 Stormwater Culverts

SIZE
Contract
Rate
($/m)
2014
(mm)
Reference
Rate
($/m)
2014
227
397
645
1 000
1 090
250
430
710
1 100
1 200
300
450
600
750
900
1200
1500
1800
168
336
482
727
940
1 290
1 640
2 590
185
370
530
800
1 030
1 420
1 800
2 850
Headwall (Single)
(diameter)
300
450
600
750
900
1 200
1 500
382
382
673
1 050
1 360
3 090
4 270
420
420
740
1 150
1 500
3 400
4 700
Headwall (Double)
(diameter)
300
600
1 200
1 500
1 800
955
1 450
5 730
8 180
12 500
1 050
1 600
6 300
9 000
13 700
Box Culvert
Precast Pipe Culvert

(diameter)
375 x
600 x
750 x
1 050 x
1 200 x
225
450
600
450
900
NOTES
1.
2.
3.
4.
5.
Review of recent contracts shows that the increase in rates for stormwater box culverts has
remained similar to the capital cost inflation rate since 2003, while the rate for stormwater
single headwalls has increased by up to 70% and the rate for stormwater double headwalls
has increased by up to 30%. These increases are not uniform over all size ranges.
These rates are based on limited data and should be used with caution.
The rates include supply, excavate and construct.
Applying the Reference Rates

4. Applying the Reference Rates

Water mains or sewer mains select the Reference Rate for the particular diameter and type of pipe
from Table 1 on page 11, Table 2 on page 12, Table 3 on page 13 or Table 9 on page 21 and add to
this rate any additional costs for rock excavation, dewatering or construction difficulty from Table 17 on
page 35.
Water pumping station (distribution), sewage pumping station, service reservoir or water
treatment works select the appropriate table in section 3 on page 10 for the facility and extracting
the Reference Rate for the particular facility characteristics (eg. installed power for a water pumping
station).
Sewage treatment works from Table 11 (on page 25) to Table 16 (on page 34). Select the
Reference Rate for the particular type of facility and add the Reference Rate for the siteworks together
with the Reference Rate for preliminary treatment, sludge lagoons or effluent ponds as appropriate.
Stormwater assets select the Reference Rate for the particular diameter and type of main or culvert
from Table 18 on page 36, Table 19 on page 37 and Table 20 on page 38 and add to this rate the cost
of disposal of spoil and any additional costs for rock excavation, dewatering or construction difficulty
from Table 17 on page 35.
The costs of land acquisition, access roads, power supply, data connection and fencing should also be
included where appropriate as indicated in section 2.7 on page 8.
Examples of valuations are shown below.
4.1. Water Supply Mains

4.1.1
Example 1: 150 Diameter AC Water Supply Reticulation Main
As AC is no longer current technology, existing AC mains should be valued at the replacement cost for
current technology, which is uPVC mains.
The Total Rate (in $/m) is required for a 150mm diameter uPVC water supply reticulation main, at
minimum depth.
Reference Rate for 150mm uPVC Water Retic Main = $140/m
4.1.2
Refer Table 1 on page 11
Example 2: 200 Diameter DICL Water Supply Trunk Main
The Total Rate (in $/m) is required for a 200mm diameter DICL water supply trunk main, at minimum
depth.
Reference Rate for 200mm DICL Water Trunk Main = $190/m
4.1.3
Example 3: 375 Diameter uPVC Water Supply Trunk Main
The Total Rate (in $/m) is required for a 375mm diameter uPVC water supply trunk main, at minimum
depth.
Reference Rate for 375mm uPVC Water Trunk Main = $370/m


4.1.4
Example 4: 600 Diameter Steel Water Supply Trunk Main
The Total Rate (in $/m) is required for a 600mm diameter Steel water supply trunk main, at minimum
depth. For this size of main it would be appropriate to use Ductile Iron as this is less costly than steel.
Reference Rate for 600mm DICL Water Trunk Main = $750/m
4.1.5
Example 5: 200 Diameter DICL Water Supply Trunk Main with 5% Rock
depth with 5% rock.
Reference Rate for 200mm DICL Water Trunk Main
= $190/m
Reference Rate for 5% rock excavation (5/10 x $8/m)
= $ 4/m
Total Rate
4.1.6
= $194/m
Example 6: 200 Diameter DICL Water Supply Trunk Main with Moderate
depth with moderate construction difficulty.
Reference Rate for 200mm DICL Water Trunk Main
= $190/m
Reference Rate for moderate construction difficulty
= $ 81/m
Total Rate = $271/m
4.2. Sewer Mains

4.2.1
Example 7: 150 Diameter VC Sewer Reticulation Main at Minimum Depth
The Total Rate (in $/m) is required for a 150mm diameter VC sewer reticulation main, at minimum
depth.
Reference Rate for 150mm VC Sewer Retic Main = $175/m
4.2.2
Example 8: 225 Diameter uPVC Sewer Trunk Main at Minimum Depth
The Total Rate (in $/m) is required for a 225mm diameter uPVC sewer trunk main, at minimum depth.
Reference Rate for 225mm uPVC Sewer Trunk Main = $220/m
4.2.3
Example 9: 100 Diameter uPVC Sewer Rising Main at Minimum Depth
The Total Rate (in $/m) is required for a 100mm diameter uPVC sewer rising main, at minimum depth.
As indicated in note 9 on page 21, use the value in Table 1 for a 100 uPVC trunk main, ie. $80/m.
Reference Rate for 100mm uPVC Sewer Rising Main = $ 85/m

4.2.4
Example 10: 300 Diameter VC Sewer Reticulation Main - 3m Depth
The Total Rate (in $/m) is required for a 300mm diameter VC sewer reticulation main, at 3m depth.
Reference Rate for 300mm VC Sewer Retic Main = $ 430/m
4.2.5
Example 11: 300 Diameter VC Sewer Reticulation Main - 4m Depth, 15%

Rock
The Total Rate (in $/m) is required for a 300mm diameter VC sewer reticulation main, at 4m depth with
15% rock.
Reference Rate for 15% rock is:

15/10 x [$42+1/1.5*($63-$42)]
Total Rate
4.2.6
= $ 84/m
= $ 654/m
Example 12: 300 Diameter VC Sewer Reticulation Main - 3m Depth with High
The Total Rate (in $/m) is required for a 300mm diameter VC sewer reticulation main, at 3m depth with
high construction difficulty.
Reference Rate for high construction difficulty
Total Rate
= $ 244/m
= $ 674/m
4.3. Water Pumping Stations

4.3.1
Example 13: Water Pumping Station (1200 kW)
The cost is required for a water distribution pumping station with installed power of 1200 kW.
Reference Rate for Civil Cost
= $ 756 000
Reference Rate for M & E Cost
= $1 944 000
Total Cost
= $2 700 000
Note: Costs for land acquisition, access road and power supply must be added (section 2.6 on
page 8).

4.4. Water Treatment Works

4.4.1
Example 14: Water Treatment Works of 10 ML/d Capacity
The cost is required for a water treatment works of 10 ML/d capacity.

Reference Rate for Lagoon Sedimentation
= $9 700 000
or
Reference Rate for Conventional Water Treatment = $14 000 000
page 8).
4.5. Service Reservoirs

4.5.1
Example 15: Service Reservoir (4ML Storage Capacity)
The cost is required for a service reservoir of 4 ML capacity.

Reference Rate for a Steel Reservoir
= $1 150 000
Reference Rate for a Concrete Reservoir
= $1 900 000
Reference Rate for a Steel Standpipe Reservoir
= $1 480 000
Note: Costs for control valves, land acquisition and access road must be added (section 2.6 on
page 8).
4.6. Sewage Pumping Stations

4.6.1
Example 16: Sewage Pumping Station (Peak Wet Weather Flow 30 L/s at
30m head)
The cost is required for a sewage pumping station with a Peak Wet Weather Flow of 30 L/s at a head
of 30m.
Reference Rate for Pumping Station
= $ 530 000
page 8).
4.7. Sewage Treatment Works

4.7.1
Example 17: Double Unit Biological Trickling Filtration Plant for 8,000 EP
The cost is required for a sewage treatment works for 8,000 EP consisting of a double unit biological
trickling filtration plant with mechanised preliminary treatment, a sludge lagoon with no mechanical
dewatering and an effluent pond.
As a trickling filter is no longer current technology, use the reference rate for an Aeration Tank
(Table 14 on page 31)

Reference Rate for Siteworks
= $ 700 000
Reference Rate for Preliminary Treatment
= $1 250 000
Reference Rate for a Sludge lagoon
= $ 580 000
Reference Rate for Effluent Pond
= $ 580 000
Reference Rate for Aeration Tank
= $3 700 000
Total Cost
= $6 810 000
page 8).
4.7.2
Example 18: Double Unit Extended Aeration Tank for 12,000 EP
The cost is required for a sewage treatment works for 12,000 EP consisting of a double unit extended
aeration tank with mechanised preliminary treatment, a sludge lagoon with mechanical dewatering, an
effluent pond and UV disinfection.
=$
820 000
= $ 1 550 000
= $ 1 370 000
Reference Rate for Effluent Pond
=$
790 000
Reference Rate for Aeration Tank
= $ 5 400 000
Reference Rate for UV Disinfection
=$
Total Cost
320 000
= $10 250 000
page 8).
4.7.3
Example 19: B4000 Extended Aeration Box for 4,000 EP
The cost is required for a sewage treatment works for 4000 EP consisting of a B4000 extended
aeration box with preliminary treatment (non-mechanised), a sludge lagoon with no mechanical
dewatering and no effluent pond.
= $ 480 000
= $ 120 000
= $ 350 000
Reference Rate for B4000 Extended Aeration Box
= $2 800 000
Total Cost
= $3 750 000
page 8).

4.8. Stormwater
4.8.1
Example 20: 450 Diameter RCP Stormwater Main
The Total Rate (in $/m) is required for a 450mm diameter RC stormwater main at minimum depth.
Reference Rate for 450mm RCP Stormwater Main
= $ 300/m
Note: Costs for spoil disposal must be added where appropriate.
4.8.2
Example 21: Kerb Inlet Pit (Double Grate with Extended Lintel)
The Cost (in $) is required for a Kerb Inlet Pit with Double Grate and 1m extended lintel.
Reference Rate for Kerb Inlet Pit
= $2 600
4.8.3
Example 22: 600 Diameter RCP Stormwater Culvert beneath Road

Embankment
The Cost (in $) is required for a 600mm diameter RCP stormwater main 20m long, beneath a road
embankment with precast headwalls at each end.
Reference Rate for 600mm RCP Stormwater Main
($400/m x 20m)
= $8 000
= $1 600
Reference Rate for double headwalls
Total Cost
= $9 600
The above cost this does not include an amount for the road surface.
Contract Rates - Figures

5. Contract Rates Figures 18 to 34
WATER MAINS
Reticulation
450
400
Contract Rate ($/m)
350
300
250
200
150
100
50
0
50
100
150
200
250
300
350
400
Diameter (mm)
uPVC Reticulation
DICL Reticulation
Figure 18 Water Mains Reticulation (June 2014$)

WATER MAINS
Trunk Mains
2000
1800
Contract Rate ($/m)
1600
1400
1200
1000
800
600
400
200
0
100
200
300
400
500
600
700
800
900 1000 1100 1200
Diameter (mm)
DICL Trunk Main
Steel Trunk Main
uPVCTrunk Main
Figure 19 Water Mains - Trunk Mains (June 2014$)

WATER PUMPING STATIONS

3.0
2.8
2.6
Contract Rate ($M)
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
0.2
0.4
0.6
0.8
1.2
1.4
1.6
Installed Power (kWx1000)

Total (Civil + M & E )
M&E
Civil
Figure 20 Water Pumping Stations (June 2014$)

WATER TREATMENT WORKS
Contract Rate ($M/ML/d)
Conventional Water Treatment & Lagoon Sedimentation

3.4
3.2
3.0
2.8
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
0.1
Capacity (ML/d)
Conventional Sedimentation
10
100
Lagoon Sedimentation
Figure 21 Water Treatment Works Conventional Water Treatment and Lagoon Sedimentation
(June 2014$)

SERVICE RESERVOIRS
2200
2000
Contract Rate ($'000)
1800
1600
1400
1200
1000
800
600
400
200
0
10
12
14
16
18
20
Storage Volume (ML)

Steel Reservoir
Concrete Reservoir
Steel Standpipe
Figure 22 Service Reservoirs (June 2014$)

SEWER MAINS
All Pipe Types (Depth < 1.5m)
1100
1000
Contract Rate ($/m)
900
800
700
600
500
400
300
200
100
0
100
200
300
400
500
600
700
Diameter (mm)
Reticulation
Trunk Mains
Figure 23 Sewer Mains (June 2014$)
Rising Mains
800

SEWAGE PUMPING STATIONS

Low head Submersible Type
1600
Contract Rate ($'000)
1400
1200
1000
800
600
400
200
0
20
40
60
80
100
120
140
160
180
200
Flow (L/s)
Low Head Sewage Pumping Station
Figure 24 Sewage Pumping Stations Low Head (up to 50m) Submersible Type (June 2014$)
Contract Rate ($/EP)
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
SEWAGE TREATMENT WORKS

Siteworks
10
12
14
16
18
20
22
24
Equivalent Population (EP x 1000)

Sewage Treatment - Siteworks
Figure 25 Sewage Treatment Works Siteworks (June 2014$)
26
28
30


Preliminary Treatment
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
10
12
14
16
18
20
22
24
26
28
30
Equivalent Population (EP x 1000)

Pretreatment - Mechanised
Pretreatment - Nonmechanised
Figure 26 Sewage Treatment Works Preliminary Treatment (June 2014$)


Sludge Lagoon & Effluent Ponds
100
90
80
70
60
50
40
30
20
10
0
10
12
14
16
18
20
22
24
26
28
Equivalent Population (EPx1000)

Sludge lagoon - Non mechanical dewatering
Sludge lagoon - Mechanical dewatering
Figure 27 Sewage Treatment Works Sludge Lagoon and Effluent Ponds (June 2014$)
30


UV Disinfection
50
45
40
35
30
25
20
15
10
5
0
10
20
30
40
50
60
70
80

Total
UV System
Civil
Figure 28 Sewage Treatment Works UV Disinfection (June 2014$)


Extended Aeration Tanks
650
600
550
500
450
400
350
300
250
200
150
100
50
0
10
12
14
16
18
20
22
24
26

Single Unit
Double Unit
Figure 29 Sewage Treatment Works Extended Aeration Tanks (June 2014$)
28
30


Extended Aeration Channels/Boxes
1000
900
800
700
600
500
400
300
200
100
0
10
12
14
16
18
20
22
24
26
28
30

B4000 Unit
Twin B4000 Units
P1000 Unit
P2000 Unit
Figure 30 Sewage Treatment Works Extended Aeration Channels/Boxes (June 2014$)

STORMWATER MAINS
2600
2400
Contract Rate ($/m)
2200
2000
1800
1600
1400
1200
1000
800
600
400
200
0
200
400
600
800
1000
1200
Diameter (mm)
UPVC
FRC
RCP
Figure 31 Stormwater Mains (June 2014$)
1400
1600
1800

STORMWATER PITS
2200
2000
Contract Rate ($)
1800
1600
1400
1200
1000
800
600
400
200
0
300
600
900
1200
Plan Dimensions (mm square)

Ungrated
Grated
Figure 32 Stormwater Pits (June 2014$)

STORMWATER CULVERTS
1200
1200 x 1200
1100
1050 x 900
Contract Rate ($/m)
1000
900
800
700
750x 600
600
500
400
600 x 450
300
375 x 225
200
100
0
100
200
300
400
500
600
700
800
Width (mm)
Box Culvert
Figure 33 Stormwater Culverts (June 2014$)
900 1000 1100 1200

HEADWALLS
13000
12000
11000
Contract Rate ($)
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
200
400
600
800
1000
1200
1400
1600
1800
Diameter (mm)
Headwall (Single)
Headwall (Double)
Figure 34 Headwalls (June 2014$)
Attachments
Attachment 1
NSW Water Supply & Sewerage Construction Cost
Indices
June 2014 Update - NSW Water Supply and Sewerage Construction Cost Indices
(based on indices at June of each year)
Year
Capital
Cost
Factor
Construction
Cost Index
(%pa)
(excl. GST)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1974
1.00
1.028
1.054
1.08
1.11
1.15
1.18
1.24
1.31
1.42
1.50
1.56
1.64
1.72
1.74
1.80
1.82
1.84
1.84
1.91
1.97
2.01
2.05
2.07
2.12
2.30
2.48
2.71
2.92
3.13
3.36
3.61
3.89
4.63
5.01
5.38
5.72
6.20
6.95
8.09
9.72
2.8%
2.5%
2.5%
3.2%
3.0%
3.0%
5.0%
5.9%
8.1%
5.3%
4.2%
5.0%
5.1%
1.0%
3.3%
1.3%
1.0%
0.3%
3.9%
3.0%
1.9%
1.8%
1.0%
2.8%
8.1%
8.0%
9.2%
7.9%
7.1%
7.5%
7.2%
8.0%
18.8%
8.2%
7.4%
6.3%
8.4%
12.2%
16.4%
20.1%
Year
Capital
Cost
Factor
Construction
Cost Index
(%pa)
(excl. GST)
1973
1972
1971
1970
1969
1968
1967
1966
1965
1964
1963
1962
1961
1960
1959
1958
1957
1956
1955
1954
1953
1952
1951
1950
1949
1948
1947
1946
1945
1944
1943
1942
1941
1940
1939
1938
1937
1936
1935
11.4
12.6
13.8
14.7
15.5
16.4
17.0
17.5
18.2
18.6
18.7
18.9
19.2
19.8
20.2
20.5
21.0
22.3
22.8
22.9
24.0
28.2
33.6
36.7
40.2
44.4
46.1
47.0
47.0
47.1
48.5
52.9
55.3
57.4
58.8
60.4
62.8
63.6
64.5
17.2%
10.4%
9.8%
6.6%
5.0%
6.3%
3.6%
3.0%
3.9%
2.4%
0.4%
1.0%
1.4%
3.4%
1.7%
1.8%
2.2%
6.2%
2.4%
0.5%
4.6%
17.4%
19.3%
9.4%
9.4%
10.4%
3.9%
2.0%
0.0%
0.2%
2.9%
9.0%
4.7%
3.7%
2.5%
2.6%
4.0%
1.4%
1.4%
Note
To update a June 2009 capital cost to June 2014, multiply by 1.15, which is the capital cost factor shown in the above table for 2009.
The NSW Office of Water provides annual updates of this Attachment 1 of the NSW Reference Rates Manual to facilitate asset
valuations using an index based on the capital cost factor derived from various sources including data published by the Australian
Bureau of Statistics (ABS).
Attachments
Year
Capital
Cost
Factor
Construction
Cost Index
(%pa)
(excl. GST)
1934
1933
1932
1931
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920
1919
1918
1917
1916
1915
1914
1913
1912
1911
1910
1909
1908
1907
1906
1905
1904
1903
1902
1901
1900
1899
1898
1897
1896
1895
1894
1893
1892
1891
1890
1889
1888
1887
1886
66.3
63.6
60.4
54.2
51.8
52.9
52.9
52.3
53.5
53.5
53.0
54.2
52.4
52.6
51.8
58.9
62.8
66.4
67.3
77.2
79.8
79.8
88.8
90.5
92.3
92.3
98.1
98.1
98.1
102.4
96.1
94.2
100.2
100.8
104.3
106
108
111
113
115
117
120
122
125
127
130
132
135
131
2.8%
-4.1%
-5.1%
-10.3%
-4.4%
2.2%
0.0%
-1.1%
2.3%
0.0%
-1.1%
2.3%
-3.3%
0.4%
-1.5%
13.7%
6.7%
5.6%
1.4%
14.7%
3.4%
0.0%
11.3%
1.9%
2.0%
0.0%
6.3%
0.0%
0.0%
4.3%
-6.1%
-2.0%
6.4%
0.6%
3.4%
2.0%
2.0%
2.0%
2.1%
1.9%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
-2.8%
Attachments
Attachment 2
Indicative Useful Lives of Assets
Water Supply and Sewerage Assets
WATER SUPPLY
Dams
structure
mechanical & electrical
100 years
25 years
Bores
Treatment Works
structure
70 years
30 years
Pumping Stations
structure
50 years
25 years
Mains
new
relined mains
80 years
50 years
River Intakes
Reservoirs
structure
roof
Treatment Works
structure
50 years
20 years
Pumping Stations
structure
70 years
25 years
Access Chambers
structure
ladder
70 years
25 years
Mains
AC pipes
VC pipes
UPVC pipes
concrete pipes
DI pipes
relined pipes
45 pipes
70 years
70 years
45 years
40 years
50 years
Others
odour control
20 years
30 years
20 years
100 years
40 years
SEWERAGE
Stormwater Assets
Channels
30 years
Culverts
60 years
Flood Control Structure

Pits
Retarding Basins
100 years
30 years
100 years
Index
Index
30-Year Capital Works Program, 2
Estimating the Capital Cost of Future Works, 3
Action Plan, 1
Executive Overview, 1
Additional Costs for Construction Difficulty,

Rock Excavation and Dewatering, 35
Extended Aeration Process, 30
Additional Costs for Rock Excavation and

Construction Difficulty, 8
Aerated Lagoon, 28
Aeration Box, 30
Aeration Channel, 30
Aeration Tank, 30
Annual Performance Monitoring, 1
Applying the Reference Rates, 39
Asset Register, 2
Asset Useful Life, 64
Basis of Reference Rates, 5
Best-Practice Management of Water Supply
and Sewerage Framework, 1, 3
Box Intermittent Extended Aeration Tanks, 28
Capital Cost of Works, 2
Capital Works Plan, 2
Competitive Contract Prices, 2
Construction Difficulty, 8
Contingencies, 7, 8
Continuous EA Process, 30
Contract Rates, 5, 6, 45
Conventional Water Treatment, 15
Extended Aeration Tank, 30

Fair Value, 1, 2
Fair Value of Water Supply, Sewerage and
Stormwater Assets, 1, 2
'Gold Plating, 1
Grit Channel and Flume, 24
Ground Level Service Reservoir, 19
Headwalls, 61
IDEA Process, 30
Indicative Useful Lives of Assets, 64
In-ground Pumping Station, 22
In-ground Submersible Pumping Station, 22
Integrated Water Cycle Management, 1
Intermittent Decanted Extended Aeration, 30
Intermittent Extended Aeration Tanks, 28
Lagoon Sedimentation, 15
Maintenance Plan, 2
MBR Sewage Treatment Works, 34
Mechanically Raked Bar Screen, 24
MEERA, 2
NSW Best Practice Management of Water
Supply and Sewerage Framework, 3
Cost-effective, 1
NSW Water Supply & Sewerage Construction

Cost Indices, 62
Demand Management, 1
Operation Plan, 2
Deprival Value, 2
Physical Non-Current Assets, 2
Determining the Fair Value of Water Supply,

Sewerage and Stormwater Drainage
Assets, 2
Pricing and Regulation of Water Supply,

Sewerage and Trade Waste, 1
Dewatering, 9
DICL Water Mains, 12
Division of Local Governments Planning and
Reporting Manual 2010, 2
Drought Management, 1
Elements of Preliminary Treatment, 24
Environmental Requirements, 9
Pumping Stations - Sewage, 23, 42, 51

Pumping Stations - Water, 14, 41, 47
Purpose of Reference Rates Manual, 1
Reference Rates, 5
Reference Rates Tables, 10
Related Publications, 3
Reservoirs, 20, 42, 49
Index
Reticulation - Water, 45
Strategic Business Planning, 1
Rock Excavation, 8
Survey, Investigation, Design & Project

Management (SID), 6
Service Reservoirs, 20, 42, 49

Sewage Pumping Stations, 23, 42, 51
Sewage Pumping Stations - Low Head
Submersible Type, 51
Sewage Treatment Works, 25, 42
Sewage Treatment Works - Extended Aeration
Channels, 57
Sewage Treatment Works - Extended Aeration
Tanks, 56
Sewage Treatment Works - Intermittent
Decanted Extended Aeration (IDEA), 31
Sewage Treatment Works - Preliminary
Treatment, 26, 53
Sewage Treatment Works - Siteworks, 25, 52
Sewage Treatment Works - Sludge Lagoons &
Effluent Ponds, 29, 54
Sewage Treatment Works - UV Disinfection,
33, 55
Sewer Mains, 21, 40, 50
SID, 5
Site-Specific Works, 9
Sludge Lagoon, 30
Standpipe Service Reservoir, 19
Steel Water Mains, 13
Stormwater, 44
Stormwater Culverts, 38, 60
Stormwater Mains, 36, 58
Stormwater Pits, 37, 59
Treatment Works - Sewage, 25, 42, 52, 53, 54,

55, 56, 57
Treatment Works - Water, 16, 42, 48
Trunk Mains - Water, 46
Typical Intermittently Decanted Extended
Aeration Tank, 30
Typical Sludge Lagoon, 27
uPVC Water Mains, 11
Use of Reference Rates for Existing Assets, 3
Use of Reference Rates for Future Works, 3
Useful Lives for Assets, 64
Valuation of Physical Non-Current Assets, 2
Water Conservation, 1
Water Mains - DICL, 12
Water Mains - Reticulation, 45
Water Mains - Steel, 13
Water Mains - Trunk Mains, 46
Water Mains - uPVC, 11
Water Pumping Stations, 14, 41, 47
Water Pumping Stations and Bores, 14
Water Supply Mains, 39
Water Supply Reservoirs, 20
Water Treatment Works, 16, 42, 48
Water Treatment Works - Conventional Water
Treatment and Lagoon Sedimentation, 48

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NSW Reference Rates Manual

Valuation of water supply, sewerage

NSW Reference Rates Manual

NSW Office of Water, June 2014

Valuations are on a MEERA Modern Engineering Equivalent Replacement Asset basis.

ii | NSW Office of Water, June 2014

NSW Office of Water, June 2014 | iii

Executive Overview .............................................................................................................1

Best-Practice Management Framework...................................................................1

Purpose of Reference Rates Manual.......................................................................1

Use of Reference Rates for Existing Assets ............................................................3

Use of Reference Rates for Future Works ...............................................................3

Related Publications ...............................................................................................3

Basis of Reference Rates ....................................................................................................5

Survey, Investigation, Design & Project Management (SID).....................................6

Estimates Based on these Reference Rates ...........................................................8

Additional Costs for Rock Excavation and Construction Difficulty.............................8

Reference Rates Tables ....................................................................................................10

Applying the Reference Rates ...........................................................................................39

Water Supply Mains..............................................................................................39

Example 1: 150 Diameter AC Water Supply Reticulation Main ..................39

Example 2: 200 Diameter DICL Water Supply Trunk Main ........................39

Example 3: 375 Diameter uPVC Water Supply Trunk Main ......................39

Example 4: 600 Diameter Steel Water Supply Trunk Main ........................40

Sewer Mains .........................................................................................................40

Example 7: 150 Diameter VC Sewer Reticulation Main at Minimum Depth 40

Example 10: 150 Diameter VC Sewer Reticulation Main - 3m Depth .........41

iv | NSW Office of Water, June 2014

Example 11: 150 Diameter VC Sewer Reticulation Main - 4m Depth, 15%

Example 12: 150 Diameter VC Sewer Reticulation Main - 3m Depth with

Water Pumping Stations .......................................................................................41

Water Treatment Works ........................................................................................42

Example 15: Service Reservoir (4ML Storage Capacity) ...........................42

Sewage Pumping Stations ....................................................................................42

Example 14: Water Treatment Works of 10 ML/d Capacity .......................42

Example 13: Water Pumping Station (1200 kW) .......................................41

Sewage Treatment Works.....................................................................................42

Example 19: B4000 Extended Aeration Box for 4,000 EP .........................43

Example 20: 450 Diameter RCP Stormwater Main....................................44

Example 22: 600 Diameter RCP Stormwater Culvert beneath Road

Contract Rates Figures 18 to 34 .....................................................................................45

NSW Office of Water, June 2014 | v

vi | NSW Office of Water, June 2014

NSW Office of Water, June 2014 | vii

Cast Iron Cement Lined

Consumer Price Index

Ductile Iron Cement Lined

Fibre Reinforced Cement

Intermittent Decanted Extended Aeration

Goods and Services Tax

Litres per second

Membrane Bioreactor sewage treatment works

Modern Engineering Equivalent Replacement Asset

Mechanical and Electrical

NSW Office of Water

National Water Initiative

Operation and Maintenance

Other Than Rock

Reinforced Concrete Pipe