Building Industry News

The ongoing severe shortage of building materials, combined with the demand for skilled tradespeople, has sent renovation and new home build costs soaring up 20 per cent over the past 12 months, according to a survey recently undertaken by Master Builders.

The prices of materials and supplies, from timber and steel to plumbing and tap-ware, has risen substantially over the past 6 months with notification that prices will only continue to rise during 2022.  

Lock-in contracts are leaving builders unable to pass on the rising cost of labour and supplies. Unfortunately many builders are continually left to absorb these costs increases. If this continues for much longer, it is only a matter of time before many companies will close their doors for good. 

The uncertainty of material costs has impacted the way in which we now look at and price our projects. Previously we have been able to secure and negotiate fixed rates for our materials, contractors, and suppliers. Now, to survive builders are having to adapt their pricing process, meaning they now have to look to include more allowances for Prime Costs and Provisional sums. Basically certain building items can no longer be included as a fixed price, and the cost of these items (such as timber frames and trusses) are subject to change based on the price at the time of construction.