Build cost increases - Brisbane

I know build prices have gone up, but I'm just trying to work out what is reasonable.

Late last year we were told by a builder that a 300 sqm house at a given standard would cost us $1500 per square metre. A couple of days ago we got pricing for a build from the same builder and it's over 16% higher than this (and probably not at the same standard).

I'm wondering if this is reasonable - I've seen everything from average build cost rising 2% to 20%. I was expecting around 10% and that's $20k I really don't want to spend given we're already over $100k over our original budget even before the build contract.

I'm thinking of going back to the drawing board and designing with an independent designer then getting multiple costings, but I don't want to do this if it's going to cost me the same and burn up another 3 months or so (which it probably will, but at least I'll know I'm not getting screwed).

There is no competitive pricing on Builders copyright plans
They'll advertise you are getting value with the free Designer kitchen and upgrades, etc.
But, when you start checking into the costs and comparing you'll realise there's no shopping around and no discounts once you have signed up and handed over a deposit.
In regards to owning your own plans with specific inclusions, you are only going half the journey
Most designers fail to deliver on engineering, that's left to the builder to sort out and that's when the real price hikes kick in.
If you choose to go down the complete design and engineering path before you source out 3 builder to quote make sure you have all the Bim data, estimates and quantities for comparison.
when signs present that they are all Clipping The Ticket ( ie, Salesman, designer, Interior Consultants, Suppliers, tradesman, Builder, etc) and you are being suckered... walk out the door
Internet analysis shows $1500/m2 is a fair price.... now it depends on what you are getting for that, you need to control the Design and Engineering, etc
Make sure everyone knows the end Game, if they don't want to play fair then give them a miss
Cheers
Chris

Well, $1500 seemed reasonable, but $1750 seems high. I had expected $1660 at most.

With regards to engineering etc, it should be a fixed price when contract is signed but the current contains ps/pc which of course only go one way.


I guess I'll go talk to a couple of independent designers. I expect the $15k or so for design/engineering/specifications is less than what I'm getting charged and I'll probably get a better result.

When comparing 3 Builders differing floor plans
Do not solely base your estimate on Dollars/m2
You will need to factor in other components of the build, ie. cavity walls ,internal wall, wet areas, etc
Here same House Area Total 232m2 differing cavity wall perimeters
how can these 3 Houses possibly Cost the same with differing perimeters?
BTW if all 3 house cost the same?
Then you are getting better value with House 3






Of course it goes up if you have no idea of what's involved
On difficult Builds always get engineering advice upfront...salesman are allowed to make mistakes...engineering isn't their job


Shop around and make sure the engineering, data and quants are included in the price, then do a proper comparison.
Cheers
Chris

All good insight. Thanks.

I don't know how much of an impact and how true it is but it seems like there is a shortage of supply of timber and steel. I was told that it is impacting the building business and the price increase has been significant.

All are commenting on delays. Some of the bigger spec builders have LOTS slabs poured but no timber steel frames we heard from a few sources. The ACCC has been inundated with complaints of price surges and if their contract holds prices or not.

Yeah, I know the prices have risen and there's a lot of delays, but there's a lot of different sources giving different numbers.

MBQld says around 10% (https://www.mbqld.com.au/__data/assets/ ... ch2021.pdf) but that's from March and it only appears to have gotten worse. The June release (https://www.mbqld.com.au/__data/assets/ ... ne2021.pdf) doesn't have any contract prices.

Meanwhile the ABS puts build price increases at a negative, or about 2.2% excluding the effects of homebuilder... I would like them to stop hogging the joint...

Thanks interesting links …..agree!

Ha the builders lobby group can put out whatever graphics they want to justify increasing their prices
If the slabs down they are breaking the fixed price contract in withholding services while demanding additional costs, and if they go bankrupt they can join all the others
Tough love

We get asked almost every day if a builder can increase the price of a fixed-price building contract.

In most cases the answer is “no”. But there are a few exceptions.

In most cases, unless your building contract allows for it, a builder may not pass on material and labour price increases to the owner in a fixed-price building contract.

We have an article here which answers the question - https://stonegatelegal.com.au/price-inc ... racts-qld/

This is a really tough issue, as whilst I agree in practice they can't & shouldn't put the price up, this needs to be weighed against the cost of trying to find another builder to finish the project once the first builder has gone broke.

There is no easy answer to this one as there is nothing worse than having your builder go into liquidation halfway through a job and then trying to find someone else to finish it, and off course all of the legal fees and downtime.

No easy black and white answer unfortunately

cheers

Simeon

By the time you get it all done it will probably go up another 20k. I'd shop around, but do it within the period your current price is valid for.