ACC QLD/NT Property Committee ROAD MAP: A 4-Stage Property Development Process for Churches, Schools and Other Facilities Version 1: August 2013

STAGE ONE: FEASIBILITY STUDY STAGE TWO: BUSINESS CASE STAGE THREE: DETAILED DESIGN STAGE FOUR: CONSTRUCTION ACC QLD/NT PROPERTY COMMITTEE: THE 4 STAGE PROCESS FOR PROPERTY DEVELOPMENT AND IMPROVEMENT OF CHURCHES, SCHOOLS AND OTHER FACILITIES APPROVAL REQUIRED TO PROCEED Version 1: August 2013 See Disclaimer

STAGE 1 FEASIBILITY (48 Hours) Get third party advice from ACC Property Committee Explanation: The Feasibility Stage will be encountered many times during the life of the Church as congregations consider the purchase of new property, the leasing of new premises, the renovation and upgrade of existing facilities etc. The Church must clearly identify what the future long-term need requirements are as this will assist in eliminating unsuitable sites and in wasting resource on short-term alterations. The Feasibility Stage can sometimes be time constrained especially when a property is up for sale or lease and the Church needs to act quickly to get a contract on the property. As such the Feasibility Stage has a 48 hour timeframe in which the Church needs to obtain some frank and realistic assessment on the property being considered for purchase or rental prior to entering into a ‘conditional’ contract which must, at the least, contain a ‘due diligence’ clause. The ACC Property Committee has access to a number of property developers who are able to assist the Church with quick and practical advice as to whether a contract should be pursued or not. This advice by nature will be very rough and more of a snapshot of the current situation and data obtained. However it will provide the Church with a frank perspective of whether the property is suitable for their needs. If a contract is to be entered into, it must be ‘conditional’ so that the Church has ample time to engage consultants and to prepare the Business Case. It is strongly recommended that the contract be conditional for at least 30 – 60 days to enable the Church to engage consultants, to get advice, to prepare the Business Case and to get endorsement. The approval to proceed with signing the contract and moving into the Business Case rests with the Church Board and they must have time to weigh up all matters before committing the Church to substantial risk. It must be stressed that the first property a church finds has historically not been the most suitable. It is recommended the procurement of a suitable property not be rushed but systematically researched until the right one is found. Preliminary Legal and Bank advice. Conditional contracts mentioned above need legal advice for cost budgets, realistic time frames and other conditions such transfer duty. Banks/lenders should also be consulted for loan feasibility and their time frames for approvals, etc. Stage 1: FEASIBILITY CHECK CHURCH CONSTITUTION FOR APPROVALS OR VOTING REQUIRED TO PROCEED TO NEXT STAGE See Disclaimer Version 1: August 2013

STAGE 2 BUSINESS CASE (30-60 DAYS) Engage Town Planners to undertake due diligence and prepare DA Engage Architect to prepare and cost preliminary building drawings Shop around Banks to sort out finance Obtain Legal advice on contract Obtain Church Board approval Explanation: Stage 2, the Business Case, involves the church engaging a number of professionals to undertake key investigations to ensure the development is suitable and the contract can go ‘unconditional’. Town Planner: All sites need Local Council Development Approval prior to specific uses of the building or site. The Town Planner will firstly undertake ‘due diligence’ to ascertain if Council would entertain the proposed development / use of the site or building. If there are no great impediments (planning / services) and Council approval seems assured, the Town Planner should continue to be engaged to undertake a planning study and lodge a Development Application for the proposed development / use. Architect: The cost of buildings or renovations, office fitouts and multi-media are often much more than expected, especially as Council charges, external infrastructure works and internal site works such as car parks and landscaping add to the total cost of the project. An architect is engaged to develop concept drawings for the building, fit-out and engineering works and to provide a ‘total’ cost estimate for the site development. Care must be taken to see that this estimated cost includes all costs. Once satisfied all costs are accounted for, it is recommended that a contingency of 10-20% be added to the cost provided by the architect to cover those additional costs that are not yet obvious. Bank/Lender: The financing of the development needs to be carefully thought through by the Church. It is strongly recommended that a number of banks be approached to identify the best financing arrangement. Legal: Detailed advice needs to be sort prior to the contract going ‘unconditional’. It is expected the solicitor will examine and endorse all aspects of the development prior to advising the contract can be executed. The final step is for the Church membership and/or Church Board to approve the Business Case. The Business Case must be carefully considered as this is the last opportunity to withdraw or make changes prior to the Church being exposed to considerable design costs. Stage 2: BUSINESS CASE CHECK CHURCH CONSTITUTION FOR APPROVALS OR VOTING REQUIRED TO PROCEED TO NEXT STAGE See Disclaimer Version 1: August 2013

STAGE 3 DETAILED DESIGN (60-90 DAYS) Engage Architect to prepare and cost detailed building drawings (incl structural and engineering drawings) Engage Mechanical and Electrical engineers to prepare drawings for fire safety, air conditioning, waste, water, lighting, data. Engage Quantity Surveyor to determine a an accurate cost estimate Engage Building Certifier to approve Building Application Check Church Constitution re obtaining Church and/or Board Endorsement to proceed to construction. Explanation: It is essential that Stage 3 – the detailed design phase be undertaken by professional consultants who are familiar with the site location and standard of construction proposed by the Church. The engagement of consultants for Stage 3 is not cheap but every effort must be made by the church to understand and to critique the drawings prior to letting the construction contracts. This time spent thinking about each and every aspect of the construction will save considerable variation claims when the building works begin. Ensure external services upgrades (electricity/communications etc.) are accounted for and timeframes can be met. It is important that an accurate cost estimate is prepared using quantities calculated by a quantity surveyor so that the Church is well aware as to its total liabilities for the development. Once all drawings have been amended to the satisfaction of the Church and the Board endorses the construction to proceed, the Church is then able to engage either a building contractor, or alternatively a project manager to oversee the works. Care must be taken with the later particularly the legal responsibilities of any Church that wants to assume responsibility for the development works rather than engage a builder. The land must be owned by the church before any work is undertaken. Stage 3: DETAILED DESIGN CHECK CHURCH CONSTITUTION FOR APPROVALS OR VOTING REQUIRED TO PROCEED TO NEXT STAGE See disclaimer Version 1: August 2013

STAGE 4 CONSTRUCTION ( DAYS) Engage Builder Engage Architect to oversee the works and ensure compliance Explanation: Stage 4 sees the building works and associated engineering site works undertaken by contractors. Note that the Church must settle on the property before any work commences. It is important that the Church ensure all registrations, insurances and licenses are in place before the contract is signed with the builder. It is strongly recommended that the Church take an active role in ensuring that construction adheres to the approved drawings. The completion of the construction phase will see the builder advise the church of ‘practical completion’. It is recommended that the Church either retain an architect or engage a specialist inspector to regularly inspect the construction works for any defects or omissions and to sign off on the Practical Completion. Stage 4: CONSTRUCTION Disclaimer: This document is intended for information purposes only. Please ensure that you obtain the most current version of this document before proceeding. Version 1: August 2013

ACC QLD/NT Property Committee ROAD MAP: A 4-Stage Property Development Process for Churches For more information please contact: Brett Mullen – Or visit the ACC QLD/NT website Version 1: August 2013