An engineer's scope of work to replace waterproofing membranes includes amounts for insurance and DBPA document lodgement. At this stage of the process, how accurate are the amounts mentioned?
Our strata scheme has 33 units in two buildings. The waterproofing membrane on both roofs needs to be replaced. The roofs are a flat concrete structure, and the building was constructed in 1984.
The engineer's scope of works quoted a $35,000 premium for the HBCF insurance certificate and $20,000 for the lodgement of documents with the DBPA.
How can I check these quotes are reasonable? How do we know the insurance quote is accurate, given we have not yet gone to tender and thus do not have quotes for the repair costs?
These amounts would likely be subject to change depending on the final project or contract cost.
Costs associated with HBCF and lodgement of documents to comply with the DBPA are generally costs dependent on the extent of works and final value.
If an engineer has prepared a scope, it is unlikely these amounts are fixed quotes and are a guide or provisional allowances that would be subject to change depending on the final project or contract cost.
Check the scope of work qualifications or conditions. If they are unclear, ask the engineer how the costs were established.
Often, provisional allowances are included at the higher end to ensure sufficient funds are allowed. However, the final cost will always be determined once tendering occurs.
Therefore, realistically, checking these costs for accuracy can only occur once the project costs are established. Provisional sums for these items are industry standard, based on the uncertainty of final values.
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Bruce McKenzie is National Manager for Commercial Services and Major Projects at Sedgwick's Building Consulting Division, the largest claims management corporation in the world. With over 36 years' experience as a licenced building contractor, Bruce has received multiple state building excellence awards and a National Building Award through Master Builders Australia.
Since joining Sedgwick a decade ago, Bruce has led the growth of its Commercial Services Division, managing major building projects nationally across the insurance and private sectors — including property damage, catastrophe events and large-scale remediation. He has acted as expert witness on high-profile litigation matters, most notably the Lacrosse Tower combustible cladding case, and served as Program Director for Cladding Safety Victoria, overseeing the recladding of over 40 buildings as part of the Victorian Government's $600 million rectification program. In 2022 he commenced a secondment as Program Director for Project Intervene with the NSW Office of the Building Commissioner, addressing serious defects in recently constructed buildings.
Bruce is a licensed builder in NSW, QLD, VIC and ACT, and holds an Advanced Diploma in Building & Construction Management and a Diploma of Project Management.
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