Browse Forums General Discussion 1 Dec 01, 2008 4:58 pm There's an economic and financial crisis, the price of oil and energy has more than halved, the prices of iron ore and other metals have nosedived. It would be logical to expect the cost of construction to come down quite a bit too.
Should I hold my breath ?? Chris My father rode a camel, I drive a car, my son flies in a jetliner, his son will ride a camel.Saudi saying Re: Will the costs fall ?? 2Dec 01, 2008 5:04 pm Sounds like a good time to buy an aqualung...
There's a similar thread here... https://forum.homeone.com.au/viewtopic.p ... highlight= "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Will the costs fall ?? 3Dec 01, 2008 5:12 pm Yeah, it's real strange how all price increases are passed on immediately, while the falls hardly ever and at best only partially
Chris My father rode a camel, I drive a car, my son flies in a jetliner, his son will ride a camel.Saudi saying Re: Will the costs fall ?? 4Dec 01, 2008 6:57 pm kristofw Yeah, it's real strange how all price increases are passed on immediately, while the falls hardly ever and at best only partially Chris As I said in the other thread, materials are 30% of construction costs and trades 50%. That leaves about 20% of which 15%-18% is overhead, rent salaries etc. so up to 70% is wages - be it trades or admin. Do you know anyone who has taken a drop in pay because iron and oil have come down in price? I don't and that is where it must start, with the cost of labour and salaries. Now look at the materials in construction they have embodied labour (manufacture, delivery, overhead) of around 50%, and their raw materials have the same ad infinitum. The real impact of changes in oil and raw material cost is small and easily overtaken by increases in CPI. The CPI for the September quarter for housing is 1.3% equivalent to 5.2% annualised. See http://www.abs.gov.au/Ausstats/abs@.nsf/mf/6401.0 CPI SEPTEMBER KEY POINTS THE ALL GROUPS CPI
rose 5.0% through the year to September quarter 2008. This is the largest annual change since December quarter 1995, excluding the period associated with the introduction of the GST. OVERVIEW OF CPI MOVEMENTS
The most significant offsetting price decreases were for child care (-22.9%), pharmaceuticals (-3.9%), audio, visual and computing equipment (-3.9%) and motor vehicles (-0.7%). "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Will the costs fall ?? 5Dec 01, 2008 11:14 pm Well, EcoClassic,
Your arguments're logical and sensible. They do seem to suffer from the reality check though, at least in my view. Whenever I get a quote for something, say steel (or concrete, or plastic, or anything), it's up to 30% more than in the professional estimate, done in Dec last year. When I say so, they answer Quote: well, you know, steel (or whatever) has gone up by X% Chris My father rode a camel, I drive a car, my son flies in a jetliner, his son will ride a camel.Saudi saying Re: Will the costs fall ?? 7Dec 02, 2008 5:20 am Want to see how steel prices have risen.
http://www.westpac.com.au/manage/pdf.nsf/1CD7E57162ADBDA4CA25748A001AD19D/$File/RegEcoRpt_Q2_08_Steel_ironore_and_coal.pdf?OpenElement Re: Will the costs fall ?? 8Dec 02, 2008 6:20 am kristofw Well, EcoClassic, Your arguments're logical and sensible. Chris Thank you... kristofw Well, EcoClassic, And steel and lots of other stuff comes from China anyway and I don't think they've had an N% wages blowout over there. So in spite of your arguments, I still think the suppliers're gouging . Chris China is booming and labour costs are rocketing over there as the law changes for minimum wages and safety standards and their standard of living grows. Plus the RMB has improved against the USD by around 15% and against the AUD by around 30%. That's reality... And China has imposed tarriffs (15%) on coking coal (steel production) and raw aluminium to slow the growth... Let's all drop our wages... that WILL make a difference! "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Will the costs fall ?? 9Dec 02, 2008 6:28 am snipfer most would purchase 3-6mths or even 1yr stocks....so even if price drops today - you wont see it at least 3-6 mths later. That is true... but if prices increase then there is only so much that can be tolerated before the price must go up or supply is stifled - they can't sustain losses for long. Coming down it depends on the market. "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Will the costs fall ?? 10Dec 02, 2008 6:53 am In construction, unless you don't do your homework, the only price hiking occurs with upgrades after which you will find you have an enlarged nose through which they extracted your $$$. "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Will the costs fall ?? 11Dec 02, 2008 7:43 am We can watch steel prices on this website:
http://www.steelonthenet.com/prices.html It will be interesting to see what October's figure is once it's published. Of course these figures are in US dollars and things have gotten much worse over the past few months. Demolition August 2009, Construction Started September 2009, Completed December 2010 Thank you Splashers. Tomorrow I might check if I can get a few packs of 300x300 in the same tile finish. It may be good to use these could in the shower recesses. I'm not… 4 4691 I've got a challenge here. Background is the builder has cut too deep for the slab and the slab is now below the very substantial retaining wall. It's failed occupancy… 0 18412 AS4654.2-2012 External Membranes it is "Informative" but if you get water ingress your insurance assessor will go to this straight away and if not achieved, they will deny… 9 1924 |