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.4k* JOHNSTAFF

Attachment I

Project Cost PlansThe Ultimo Presence Project

Mark SimsDirectorRider Levett Bucknall

RLB I Rider Levett Bucknall Rider Levett Bucknall NSW Pty LtdABN 94 003 234 026

J:16229\2.2\05

6 October 2017

Level 19, 141 Walker Street PO Box 531North Sydney NSW 2059 Australia

Tel: +61 2 9922 2277 Fax: +61 2 9957 4197 Email: [email protected]

JohnstaffLevel 12, 70 Pitt StreetSydney NSW 2000

Dear Eugenie,

POWERHOUSE MUSEUM REDEVELOPMENT — ULTIMOPRELIMINARY INDICATIVE HIGH LEVEL ORDER OF COSTS — WITH FITOUT

As requested, we have revised Options 1 to 3 of the Preliminary Budget Estimates for the study options for the Ultimo site to include Museum Fitout within the Estimate. This has been prepared based on sketch schemes prepared by Crone received on 15 September 2017, and the updated structural information from TTW dated 11 September and the services budget received from the engineers dated 28 August 2017.

Our revised Preliminary Budget Estimate for Options 1 to 3 including alternative positioning of the Theatre in Harwood site, as presented in Crone's design is listed below:

1. Option 1 — Mixed Use Hub2. Option 2 — Refreshed Museum3. Option 3 — Theatre Venue4. Alternative — Harwood Site5. Option 4 — Warm Shell

The above Option 3 total cost is for a combined facility, of which would be the theatre fitted inside, and the indicative allowances for structural modifications.

Please refer to the attached Estimate Summaries of the revised Options with Fitout cost listed separately and with the Basis of Estimate and full list of notes and exclusions.

Included within our Preliminary Budget Estimate are allowances for contractor preliminaries and margin, design fees, statutory fees, design development and construction contingencies. These are all based on a percentage allowance, and do not relate to any specific risks or solutions.

The above Preliminary Budget Estimates have been escalated based on commencement of work in July 2021 and completion in January 2024.

Should any of the above Options be considered for development, we recommend that detailed design shall be developed and detailed cost estimates prepared.

Should you have any questions regarding the above, please contact the undersigned.

Yours faithfully

ATT.

DIRECTORS: MJ Harris (Managing). SM Mee. SP Ballesty. RJ Rigby. MJ Sims. PM Skinner. NA Ferrara. MW Hocking (Newcastle)SENIOR ASSOCIATES: RE Berger. SA Fry. JP Gall. G Nowak. RH Streifler. M Swords. JP Vitler.ASSOCIATES. SE Bassilious. T Lai. SJ McConkey 0 Nichols M Rooseno. V Seretis. TH Williams

ISO 9001 FS 548756

www.r1b.com

Mark SimsDirectorRider Levett Bucknall

Powerhouse Museum Ultimo - Study Options With Fitout

BASIS OF ESTIMATE

Due to the limited and preliminary information available, we have prepared this high level Preliminary Budget Estimate based on the information provided and our understanding of the required scope of work.

The estimates have been derived using measured quantites and applied rates toarrive at a total project cost.As instructed, we have based our estimates on the following documentation:Crone Architect - Study Options 1-5 and Schedule of Functional Areas received15.09.2017. Finishes have been incorporated as per similar standard adopted inWestern Sydney Museum, where applicable.Taylor Thomson & Whiting - Structural Comments received from Johnstaff on11.09.2017.Engineering services budget estimates have been incorporated as:Steensen Varming - emails dated 28.08.2017(Electical, Mechanical & Lifts)Warren Smith & Partners - emails dated 28.08.2017(Fire & Hydraulics)

In order to arrive at an all up project cost, where information has not been available due to the early stages of the project design, it has been essential for us to make numerous assumptions based on our experience in relation to, building fabric, structure, finishes, engineering services, fitout and infrastructure.

As instructed, digitisation, logistics & relocations have been excluded. We understand these are to be advised by other consultants and treated as operating costs.Museum project staff capex and opex cots are also excludedWe recommend that this preliminary high level order of cost budget estimate is proven up as the design develops and more information is available.We have assumed that the project will be tendered on a competitive basis to between three and five contractors.

As Johnstaff email advice on 24.08.2017 preliminary programme dates will be asfollows:Design Development & Documentation: July 2018 - Aug 2020Commence Construction: July 2021Construction Complete: January 2023Other:Exhibition/Building Fitout: January 2023 - January 2024MAAS Ultimo Opening: January 2024, by others

ITEMS SPECIFICALLY EXCLUDED

In compiling this Preliminary Budget Estimate, no allowance has been made for the following cost items. Allowances for these items should be added as appropriate to establish the total project cost. If requested, we can provide assistance to assess these allowances.

EB16229-4PRINTED 29 SEP 2017 04:40pm PAGE ii Rider Levett Bucknall


ITEMS SPECIFICALLY EXCLUDED (Cont'd)

Any costs and fees as a result of any development approval resubmissionsAny special or additional contributions sought by authorities for publicor other facilities as a condition of development approvalArtworks contentExhibitions or Sculpture, contentCost increases beyond January 2024Site services and diversions in excess of Steense Varming / WSP estimatesFinance costs and interest chargesGoods and Services TaxLand and legal costsLoose furniture, fittings and equipment, in excess of notional allowancesPromotion/Marketing costsPublic utilities' charges, contributions and leviesReal Estate Agent's fees and leasing costRemoval of asbestos and other hazardous materialsSite decontamination, remediationOff site rental or storage for alternate accommodationRemoval and transport of existing museum displays and fitoutCommercial office fitoutOccupant incentive and/or relocation contributionsWork outside site boundariesStrengthening or futureproofing structures for additional levelsCommercial offices or Residential buildingsWork to the extension building ie Wran BuildingWork to remaining Harwood site, other than New Theatre Option 3 AlternativeSpecial ESD inititives, such as Co-Generation, Tri-Generation, BlackwaterElectromagnetic shieldingLarge objects store - off site, if requiredDigitisation, collection treatment/assessment, logistics,Project delivery museum staff operating costsBOH non exhibition removal transition costsProject delivery museum staff

EB16229-4PRINTED 29 SEP 2017 04:40pm PAGE iii Rider Levett Bucknall

Cost Coat/m2Mixed Use


ELEMENTAL MIXED USE HUB REPORTEstimated ratesCost/m2 of Gross Floor Area

10 Demolition & Basement Works

20 Mixed Use Hub

25 Museum Fitout

30 External Works

Grand Total

EB16229-4PRINTED 29 SEP 2017 04:39pm PAGE GS.1 Rider Levett Bucknall

Refreshed Co Cost/


ELEMENTAL REFRESHED MUSEUM REPORTEstimated ratesCost/m2 of Gross Floor Area


20 Refreshed Museum

25 Museum Fitout

30 External Works

Grand Total


EB16229-4


ELEMENTAL THEATRE VENUE REPORTEstimated ratesCost/m2 of Gross Floor Area

Theatre Venue m2 Cost Cost/m2


20 Theatre Venue

25 Museum Fitout

30 External Works

Grand Total

PRINTED 29 SEP 2017 04:40pm PAGE GS.1 Rider Levett Bucknall

Powerhouse Museum Redevelopment - Study Options

ELEMENTAL THEATRE VENUE - HARWOOD SITE REPORTEstimated ratesCost/m2 of Gross Floor Area

Theatre Venue - Harwood Site m2 Cost $ % Cost/m2

10 Demolition

20 Harwood Site

30 External Works

Grand Total


Powerhouse Museum Redevelopment - Study Options

ELEMENTAL WARM SHELL REPORTEstimated ratesCost/m2 of Gross Floor Area

Warm Shell m2 Cost Cost/m2


20 Warm Shell

30 External Works

Grand Total


RLB 1 Rider Levett Bucknall

Life Cycle Costing

fo r

Powerhouse Museum Ultimo — Study Options With Fitout

3 November 2017

Prepared for: John StaffLevel 12, 70 Pitt StreetSydney NSW 2000

Rider Levett Bucknall NSW Pty LtdLevel 19, 141 Walker StreetNorth Sydney NSW 2060ABN 94 003 234 026Tel: +61 2 9922 2277Fax: +61 2 9957 4197www.rlb.com

Prepared by:

Our reference: 16229 LCC

Life Cycle CostingPowerhouse Museum Ultimo

for John Staff

RLB Rider Levett Bucknall

STATEMENT OF LIMITING CONDITIONSThis Life Cycle Costing report has been prepared for John Staff. This report has been prepared with due care having regard for the scope of the brief and the timeframe for reporting. It is provided for the information of the parties only to whom it is addressed.

Rider Levett Bucknall accepts no responsibility, or liability, to any other party who might use or rely upon the report without our prior knowledge and written consent. Further, no portion of this report (including without limitation any conclusions which may affect value, the identity of Rider Levett Bucknall, or any individuals signing or associated with this report, or the Professional Associations or Organisations with which they are affiliated) shall be copied or disseminated to third parties, by any means, without the prior written consent and approval of Rider Levett Bucknall.

This report is limited to those aspects which could be observed from the documents provided. Our report does not cover expenditure requirements which may occur either directly or indirectly as a result of latent defects or obsolescence beyond normal 'wear and tear'. Nor will it cover expenditure as a result of accidental or malicious damage and future upgrades undertaken for reasons other than physical obsolescence.

This report is not a certification, a warranty or guarantee.

Any inaccuracy in or change to any of the facts, findings or assumptions made in our report of which you are aware should be advised to us such that we can assess its significance and provide you with a revised commentary and recommendations, if necessary.

JN 16229_LCC 2


for John Staff3 November 2017

RLB I Rider Levett Bucknall

2. LIFE CYCLE COST OPTION ANALYSISThis LCC is based on initial construction cost planning detail developed by RLB. The LCC elements are built-up from the elements present in the Cost Plan. Items are then categorised according to this elemental build-up.

Where elemental detail was not provided, we have assumed this scope through comparison with projects of similar scope.

The following sections of this report will outline the LCC associated for each of the five (5) options. Sitewide and infrastructure works have been excluded from this LCC assessment.

2.1 TOTAL EXPENDITURE

The below graph details the total expenditure for the site for the five (5) options relative to the Capital Cost and the LCC.

800,000,000

700,000,000

600,000,000

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

n Life Cycle Cost

Option 1 - Option 2 - Option 3 - Option 3A - Option 4 - Mixed Use Refreshed Theatre Venue Harwood Site Warm Shell

Hub Museum

JN 16229_LCC 5

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 18 Year 17 Year 18 Year 19 Year 20

T o t al




2.2 LIFE CYCLE REPLACEMENT & MAINTENANCE COST

The below table details the forecasted annual expenditure for the site for the five (5) options, relative to the LCC and maintenance costs. We refer you to Section 3 of this report for a detailed description of planned and reactive maintenance.

Option 1 - Mixed Use Hub

Life Cycle

MaintenanceReplacement Costs (Planned &

Option 2 - Refreshed Meseum

Life Cycle MaintenanceReplacement Costs (Planned &

Costs Reactive)

Option 3 -Theatre Venue

Lite Cycle MaintenanceReplacement Costs (Planned 6

Costs Reactive)

Option 36 -Alternative HarwoodSite

Life Cycle MaintenanceReplacement Costs (Planned &

Costs Reactive)

Option 4 -Warm Shell

Lite Cycle MaintenanceReplacement Costs (Planned &

Costs ; Reactive)

- 261,678.03 - 313,317.38 - 240,974.65 90,39293 7...4,8961:38.26167603 - 313,317.38 - _....319174,65 96393.93 14,896....8

281,678.03 313,317.33 - 240,974.65 9639293 74,80638

- 261,6784)3. - . *!?,31?,?! - 4_(!.?71.f.5 5639293 - ?1.99c.: ,463,400 261,67603 170,600 313,317.38 2.105,300 240,974.65 2250,400 90,39293 74,200 74,806.38

1,145,300 261,678.03 1,282,800 313,317.38 1,090,600 240,974.65 394,700 90,39293 778,100 74,806.3844,136,500: 261,67603 56,676,700 312317.36 26387,900 240,974.65 1,175,700 90,39293 2437,400 74,806.38

2172800 261,678.03 2901,900 316317.31 1,941,300 240,974.65 608,6001 96392.93 1,333,400 74.806,38- 261,678.03 - 316317.39 240,974.65 - 90,39293 74608.39

4,055,000 261, 67&03 2937,600 313,317.38 15,355,200 240,974.65 15,467,900 90,39293 3,880300, 74,80638261,67603 - 313,317.39 240,974.65 - 9039293 - 74,80638

7,816500' 261,67603 6283,400 312317.36 2492800 240,914.65 1,668,100 90,392.93 932400 74,806.381,144,600 261678.03 1,281,800 313,317.38 1,089,800 240,974.65 384,100 90,39293 563000. 74,606.38

44,136,500 , 261,678.03 56,676,700 313,317.38 28,387,900 240,974.65 1,175,700 90,392.93 2437,400 74,808.3813,212100' 261,678.03 14,350,900 313,317.38 12809,600 240,974.65 5,425,500 9039293 8,178,100 74,1398.386093,400 261,678.03 10,788,600 313,317.38 7,472400 240974 .65 1,592200 90,39293 4,965,700 74,806.382220,900 261,67603 2,647,400 313,317.38 1,904,500 240.974.65 466300 90,39293 1,095,700 74606.385,390,600 261,67603 6,792300 313,317,38 4,177,600 240,974.65 637,000 90,392.93 2,744,700 , 74,80638

1,701,200'. 261,67803 1,935,400 313,317.38 1,523,500 240,974.65 391,400 90,39293 1,016,000 74,806.38

128365001 261,678.03 12,311,400 31231238 28961,400 240,974.65 19,985,500 9039293 12340,100 74,806.38

149,530,300 6233,561 179,038,500 6266.348 137,699,800 4,819,493 51.653,100 1,807,859 42,746,500 1,496,128

JN 16229_LCC 6


for John Staff


3, BASIS OF ESTIMATELife Cycle Costing (LCC) provides an economic evaluation technique for the identifying and quantifying of all costs, initial and on-going, associated with a project or an asset over its expected life. RLB undertake LCC in accordance with International Standard 15686-5 Life-cycle costing. The LCC assessment includes the assets aligned to the reporting stage and level of detail for each applicable cost plan.

LCC reports should be prepared holistic. On this occasion we have based our LCC assessment upon all documentation available at the time the report was prepared, inclusive of individual project characteristics and site specifics as well as the project programme.

We provide our analysis based on Rider Levett Bucknall's Preliminary Budget Estimates dated 6 October 2017 for the purposes of providing a high level LCC comparison of the five (5) proposed options to the prospective site.

The effective life of elements is based on the assumption of expected routine usage under normal wear and tear, taking into account change in technology, compatibility with other replaced items and building works in connection (BWIC).

The model assumes major replacement works will be grouped into consolidated refurbishment programmes resulting in improved management and less disruption of services than if all works were completed separately. The following costs do not incorporate cost escalation beyond the date of construction commencement or present value discounting.

The works have been estimated on the basis of being undertaken as part of a total upgrade or refurbishment and not as isolated tasks.

Allowances have been included for the replacement of an asset at the end of its effective life only and no consideration has been made for staggering works.

Specific operational requirements of individual facility components have not been assessed. However, we have assumed that the building will be maintained to a relatively high standard. The estimates included in this LCC Analysis are indicative and replacements are based upon typical replacement cycles and effective lives determined from RLB Benchmarks and industry standards. The items and scope of work are not fully described or detailed, and reflect the high level nature of the assessment. Pricing and replacement intervals reflects all work scoping, pricing and timing over a 20-year period.

Planned Maintenance (PM) refers to the actions performed to retain an item or asset in its operational condition by providing systematic inspection, detection and prevention of incipient failure. Additionally, periodic maintenance of machinery and equipment to ensure smooth operations and minimum breakdowns is inclusive.

Reactive Maintenance (RM) refers to action performed, as a result of failure, to restore an item or asset to its optimal condition. Periodic monetary allowances have been made to facilitate likely reactive works.

JN 16229_LCC 7

ExternalitiesIncome

Non-construction

costs

t

Life Cycle

Construction

I

Replacements

I

Operation

I

End-of-Life


for John Staff

RLB Rider Levett Bucknall

4"L iic of Lfr

Whole of Life structure in accordance with 15686-5.

Life Cycle Cost structure in accordance with 15686-5.

Whole of Life components in excluded from this assessment.

JN 16229_LCC 8




4. SPECIFIC EXCLUSIONSThe estimates included in this Life Cycle Costing assessment are indicative only. The items and scope of work are not fully described or detailed, and reflect the nature of the assessment. Pricing and replacement intervals reflect all encapsulating work scoping, pricing and timing;

No items or allowances have been made within the current estimates for the following;

· Initial Construction Costs;· Cost of finance and interest changes;· Damage· Depreciation;· End of tenancy make good;· Residual or salvage values;· Operational costs· Upgrades of aesthetics and changes in design trends, all future costs are based

on current design.· Costs associated with the relocation, temporary accommodation, and disruption

to business or loss of profit of the Asset's owners;· External infrastructure, improvements and work outside site boundaries;· Removal, decommission or recycling of systems, components, parts which

require specialist removal or recycling;· Potential future changes to current building codes, standards or regulations,

including access for people with disabilities, environmental compliance or sustainability performance requirements;

· Full refurbishment, reconfiguration or change of use; and· Goods and Service Tax (GST).

JN 16229_LCC 9

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