As we all know the construction industry is getting busy. Especially in the capital cities where prices have risen dramatically. Within 8 months in Brisbane we have seen the cost per apartment or townhouse rise by $20,000 or more. This can mainly be attributed to the trades shortage as many projects begin construction. Bricklaying and Gyprock trades have seen dramatic price increases especially and with some prices increasing 25%.
These increases affect most in the capitals but there are some methods to control the impact they have on your project.
- Reducing the time between a tender/negotiated price and construction starting. This includes having a complete set of documentation and all other elements of the development under control before you get your prices.
- Have a definitive construction date set and the critical path analysed to ensure this date is realistic.
- Make sure your feasibility has contingencies for increases in construction costs
- Use builders who have schedule available and will stand by their commitments.
Tips on Builders
Now is a tough time to get builders to commit whole heatedly to quoting projects. This is due to the busy construction market and the amount of quoting builders are already doing. In these times there’s a better strategy to get the best construction result for your project. We would advise doing in depth research on builders in the market and go to only two or three who are the most suited. This can be difficult but remember, you can access Builder Solutions 8 years of research on builders.
When a builder is aware they are only one of two or three competing for the work they will compete more aggressively for the contract, be timely with their quoting and offer alternatives to reduce costs. You will also avoid getting high and low prices from other builders who may not be so well suited to the project.
Working closely with a few builders allows you to understand the builder better and then a collaboration develops that will bring far more value to the project. Following on from this, if you are able to have a transparent relationship with your builder about costs you will save time and money on other quotes that will only bring surprises and disappointment.
In this time when construction costs are on the move it is important to discuss expectations you have about your projects build costs. Knowing what you costs are earlier rather than later will save you money time and pain.