Infrastructure Agreements: Key points to understand
Infrastructure Agreements can be complicated. They vary in their purposes, are designed specifically for each situation, and are crucial to ensure all parties, including the developer, are receiving equitable outcomes.
Brent Thomas from PEAKURBAN, an Institute member and a former Branch President of the Sunshine Coast Branch has published an article on “Key Points when Negotiating Infrastructure Agreements”.
He notes a well-constructed Infrastructure Agreement (IA) provides certainty for the developer and Authority regarding the delivery of various trunk infrastructure items. For large, and often greenfield developments, developing or providing infrastructure as part of the development may serve a trunk function. Trunk infrastructure is defined under the Planning Act 2016 and reflects larger, significant infrastructure that supports growth and benefits several development sites.
The key points in this article are:
- Actual Cost of Construction versus Agreed Amounts
- Changes to design and construction standards
- Don’t give away your rights to conversion applications
- Allow for cross crediting across the various infrastructure networks
- Refunds and Access to refunds
- ‘Pass through’ provision to collect charges faster
- Land acquisition
- Termination and Sunset Date
- Access to Authority Land For Infrastructure
- Security
- IA Schedules and Nodal Plans
- A picture is worth a thousand words.
The Institute is keen on hearing how IAs work for members, how can they be improved, and the potential limitations you may have experienced.
Please contact the policy team at udia@udiaqld.com.au to provide your comments and insights. Thank you to Brent Thomas for allowing us to share his article.