Essential Public Assets re-damaged by a subsequent event

This page is for NSW State Administering Agencies, Local councils and NSW state agency asset owners. It details processes relating to essential public asset reconstruction (EPAR) works when an asset is re-damaged at the same location by an eligible event: prior to works undertaken to repair damage from a previous event, or during works undertaken to repair damage from a previous event. 

On this page

Definitions

Administering Agency refers to Transport for NSW (for essential public asset transport infrastructure) and NSW Public Works (for all other essential public assets). 

Coordinating Agency refers to NSW Reconstruction Authority (RA) the co-ordinating agency for disaster recovery funding within NSW.  

DRFA refers to the Disaster Recovery Funding Arrangements 2018 (DRFA) An essential public asset refers to an eligible transport or public infrastructure asset which is owned and maintained, or operated and maintained, by an eligible undertaking in accordance with the DRFA. 

An estimated reconstruction cost (ERC) for an eligible reconstruction project is established when the DRFA C3 control is executed i.e. the ERC is approved (signed off) by the relevant Suitably Qualified Professional.  

What is a re-damaged asset? 

In accordance with the DRFA an essential public asset is considered to be re-damaged where the asset suffers damage in the same location by a subsequent eligible disaster. In this instance the process outlined in this fact sheet must be applied (DRFA clauses 7.1.15 – 7.1.19). The NSW Essential Public Asset Restoration (EPAR) Guidelines 2018 refers to re-damaged assets in Section 5.3. 

Steps for asset owners and administering agencies to undertake for re-damaged essential public assets

If re-damage occurs to an essential public asset, asset owners must notify the relevant administering agency as soon as possible.

The NSW Administrating Agency, in consultation with the Coordinating Agency, may assess on a case-by-case basis if the cost of re-damaged site works is reasonable and can be accommodated through contingency amounts included in original Total Upper Limit Grant (TULG) established under Eligible Disaster 1.

There are four main scenarios in relation to re-damaged assets:

1

No Estimated Reconstruction Cost (ERC) for the essential public asset was established following Eligible Disaster 1 (ED1) prior to re-damage by Eligible Disaster 2 (ED2)

Scenario 1: ERC was not established following ED1 nor prior to re-damage by ED2

  • Asset owner cannot claim for any expenditure under ED1
  • No further actions are required for ED1
  • Asset owner should create a new project under ED2 and establish an ERC for the works to be undertaken as a result of ED2
  • The state is only permitted to claim the ERC for ED2 (DRFA Clause 7.1.17). 
2

An ERC was established following ED1 but no costs were incurred prior to re-damage by ED2

Scenario 2: ERC was established for ED1, however no expenditure was incurred for EPAR works prior to re-damage by ED2

  • The EPAR project established under ED1 should be closed, and the TULG should be reduced to zero. No claim can be made under ED1
  • The relevant administering agency should be notified of the revised TULG and that no expenditure was incurred
  • The administering agency should ensure that all information for this project is updated and reported to the coordinating agency as a completed project (with the revised zero value TULG)
  • Asset owner should create a new project under ED2 and establish an ERC for the works to be undertaken as a result of ED2
  • The state is only permitted to claim the ERC for ED2 (DRFA Clause 7.1.17). 
3

An ERC was established following ED1 and works commenced with expenditure incurred prior to re-damage by ED2

Scenario 3: ERC established under ED1, with reconstruction works commenced (and expenditure incurred) prior to ED2 

Where expenditure has been incurred for reconstruction works on an essential public asset directly damaged by ED1 and the same essential public asset is re-damaged by ED2, the asset owner must close off the initial project and establish the actual value of the expenditure incurred under ED1 (Clause 7.1.16 under DRFA).*(Refer Scenario 4 where one EPAR project includes multiple sites).  

  • All expenditure to the date of ED2 should be collated, entered into the asset owner’s accounting system and reconciled
  • At this point the EPAR established under ED1 should be closed, and the TULG should be reduced to the actual expenditure incurred prior to ED2
  • Council should submit all acquittals and relevant information to the relevant administering agency, including the finalised actual expenditure
  • The administering agency should ensure that all information for this project is updated and reported to the coordinating agency as a completed project with the actual cost incurred
  • For NSW State owned assets, the administering agency should ensure that all information for this project is updated and reported to the coordinating agency as a completed project with the revised actual expenditure
  • Asset owners should create a new project under ED2 and establish an ERC for the works to be undertaken as a result of ED2, as per the NSW EPAR Guidelines and in accordance with the DRFA
  • The Allowable Time Limit to establish the ERC for the new project under ED2 is 12 months from the end of the financial year in which ED2 occurred.

The asset owner must maintain evidence to demonstrate the variance in expenditure incurred as a result of a re-damaged essential public asset, for coordinating agency submission to the Commonwealth, if required (DRFA Clause 7.1.19). 

4

Multiple sites established under one EPAR project following ED1, and not all sites are damaged by ED2

Scenario 4: Multiple sites established under one EPAR project following ED1, and not all sites are re-damaged by ED2

For sites that are subject to re-damage, process outlined for Scenario 3 applies, noting the remaining sites not re-damaged should remain under the ERC for ED1.

  • If no costs were incurred - the ERC for ED1 should be revised down to remove re-damaged site(s) and associated costs. This will result in:
    • a revised ERC for ED1 including only those site(s) and associated costs from the ERC (ED1) where re-damage did not occur
  • If costs were incurred - the ERC for ED1 should be revised down to reflect the actual costs incurred for the re-damaged sites and a new ERC for ED2 be developed covering the re-damaged site(s) and associated costs. This will result in:
    • a revised ERC for ED1 including those site(s) and associated costs where re-damage did not occur, as well as the actual costs incurred for re-damaged site(s) prior to ED2
    • a new ERC for ED2 that includes those site(s) and associated costs (minus actual costs incurred) to fully reconstruct site(s) that were re-damaged by ED2.  

Additional circumstances that may arise

ERC established and an Independent Technical Review (ITR) has taken place under Eligible Disaster 1 (ED1) and works commenced to restore asset prior to Eligible Disaster (ED2)

Follow scenario 3 steps above then one of the options below:

  • A new Total Upper Limit Grant (TULG) established and if the amount is greater than $25 million then a new ITR must take place
  • A new TULG established and if the amount is less $25 million to complete works, then an ITR is not required and works are undertaken within the new TULG.  
An ERC established under ED1 for less than $25 million and works commenced to restore asset prior to ED2
  • Follow scenario 3 steps above
  • A new TULG established and if the amount is greater than $25 million then an ITR must take place.
Re-damage requiring Emergency Works (EW)

As a result of ED2, Emergency Works (EW) are required to reinstate public access or make the damaged site safe. These works should be claimed under ED2.

  • Necessary EW works completed should be claimed under ED2 as EW and not as part of the new EPAR established under ED2.
EPAR works underway that are covered by insurance

The DRFA is intended to support certain relief and recovery measures delivered by NSW in relation to eligible disasters which complement other state-based strategies, such as insurance and natural disaster mitigation planning and implementation.  Any insurance payments should be deducted from all EPAR claims.  

Disaster evidence to support a re-damaged asset

In accordance with the Disaster Recovery Funding Arrangements (DRFA) Clause 6.2, evidence must be provided to demonstrate the exact location, nature and extent of damage to an essential public asset.  

In circumstances where a site is re-damaged in the same location, the following evidence should be provided to support the re-damage and Essential Public Asset Reconstruction (EPAR) project estimated reconstruction cost 

Asset pre-disaster condition evidence:
  • Noting the asset needs to be restored to the condition prior to any damage sustained by eligible events, evidence of pre-disaster condition should demonstrate the condition of the asset prior to Eligible Disaster 1 (ED1).
  • The timeframe for eligible pre-disaster condition evidence must be within 2 years prior (state owned assets) or 4 years prior (council owned assets) to ED1.  
Asset re-damage evidence
  • Evidence to support the impact on the asset of Eligible Disaster 2 (ED2) and that the asset has been damaged at the same location as the impact of ED1. 
Works completion evidence
  • Evidence of works completed and the actual costs incurred for closed off EPARs established under ED1 (if applicable)
  • Evidence of works completion for the reconstruction works delivered following impacts of ED2.  

Appendices

State Coordinating Agency administrative process

The information below is only relevant to NSW State Administering Agencies 
  • If the state has submitted its audited claim to the Commonwealth for the relevant Program of Works year in which the Estimated Reconstruction Costs (ERC) was established (for Eligible Disaster 1 (ED1)), the state must report the expenditure adjustment to the National Emergency Management Agency (NEMA) at the time the coordinating agency submits quarterly budget reports under clause 5.4 of the Disaster Recovery Funding Arrangements (DRFA) and in the state’s next audited claim (Clause 7.1.18).
  • Coordinating agency to remove all re-damaged sites and associated costs (inc. escalation and contingency) from the original ERC (i.e. revise down the ERC for ED1 to only contain sites not re-damaged and actual costs incurred for those sites with re-damage).
    • If ERC (for ED1) has not been claimed the adjusted ERC should be revised in REPA report with associated comment explaining the adjustment and then the adjusted ERC should be reflected in relevant claim.
    • If the claim that includes the ERC (for ED1) has been paid, coordinating agency will need to inform NEMA of the variance in the ERC as an adjustment for the relevant program of works through a prior year adjustment in order for the Commonwealth to recover the funds that are no longer eligible.
  • Coordinating agency would claim the new ERC (for Eligible Disaster 2) as part of the normal claim process. 
Download Disaster Recovery Funding Arrangements - Essential Public Assets Re-damaged by Subsequent Event Fact sheet PDF 175.11KB File last updated on: 21 May 2025.
Download as PDF Print this page
Top of page