Browse Forums Building A New House 1 Feb 16, 2022 11:27 am Hi, We are working with a builder who has advised every month there is likely to be a $10k increase, and a 8 month delay in getting framing for the home and additional 12 weeks to complete the home. We are not able to sign the contract till around 60 days from when frame is due so will be hit by approx $50k on top of the build price due to the current building boom, supply shortages etc.... We are currently renting and have a block of land. The blow out to costs and timeframes has us questioning whether now is still a good time to build, accept it is what it is and move on, revising our wish list to bring cost down, or we sit it through in the hope things will settle and there will not be excessive costs to build in 1-2 years time. Is anyone in the same situation and any intel on if this is the new norm? Re: Build cost predications post 2022 2Feb 16, 2022 3:21 pm no intel but in a similar position (in fact our builder cancelled our contract because it was no longer profitable and we have to resign). My guess is it will settle down as the massive backlog from the grants works through the system but its unlikely to go down again. I wouldn't wait hoping it will go down. Worst that can happen signing now is you end up overpaying slightly but best case is you maybe avoid another round of rises. Re: Build cost predications post 2022 3Feb 16, 2022 3:33 pm The current construction cost is unsustainable in the long run. I know a lot of people who bought the land in SE Melbourne last year and decided to not develop / build this year due to the rising cost. Once the number of new starts declines, only then we will see some prices going down. Having said that, most likely they will not come down to pre-covid prices. Re: Build cost predications post 2022 4Feb 16, 2022 4:43 pm You might just want to kiss your deposit goodbye, Start again with a new design and wait for the economic indicators, costs and supply to improve. Have all your build data handy Best guestimate is 2 years goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Build cost predications post 2022 6Feb 17, 2022 10:26 am Hi everyone, this is my first post here. Right now, if I was thinking about building a house, I would drop the project really quickly! All the costs are not just going up, there are skyrocketing up! No one knows when it will stop, material and labour shortages play some part, but it's mostly all about getting the product in from overseas. China is the main casualty, there is a shortage of containers and ships, so demand makes the price go higher. Shipping ports are also increasing costs because fewer ships coming, means more idle labour. Everything is going up and 40% looks like the most likely number, so how do estimators work out a price for you? There are already building product suppliers going into administration, and builders will follow. When the governments were handing out money to builders, everything was looking great, but later this year, their margins might not be looking too good. The need to finish houses and get paid has become a high priority, the labour and materials being used will suffer. We went through a similar time, with our build. It was built in 2000, we had the millennium bug threatening to kill all the computers, we had all the tradies working away in Sydney for the Olympics. It wasn't the smartest move, but it almost paid off. The main thing to remember is that builders go bankrupt, they do it to minimise debt, they can not start a business for years, but their mates give them jobs within their companies. I would love to find out how many bankrupts and discharged bankrupts work within the building industry. Right now, if I needed to buy property, to live on, it would be in the regional areas. I would buy a run down, but livable place on Kangaroo Island or maybe in the mid-north of Adelaide. I wouldn't do anything but the very basic and needed maintenance on it, until all of this settles down. Re: Build cost predications post 2022 7Feb 17, 2022 11:50 pm This is exactly what I have been thinking too. Another issue is valuations. If construction costs are rising so much, then are these rises considered by bank valuations or would that mean that all the price rise will have to be upfront? Re: Build cost predications post 2022 8Feb 18, 2022 7:15 am I'm back at the specification stage again. I'm wondering if it's worth considering alternative materials to try and reduce the impact of cost rises and delays (e.g. cladding instead of brick). I'm going to have the conversation with the builder anyway. Re: Build cost predications post 2022 9Feb 18, 2022 8:23 am It's great that your builder is assisting you, in trying to optimise your design, while minimising costs. This is done by analysing alternative methods, data, materials upfront and honestly. A word of warning, some builders encourage you to keep exploring/making changes. By means of variations ie exchange one item for another. The issue then becomes price creep, builders hang onto the profits and credit back pittance , eventually you get less build at more cost. Having First Stage engineering Bim Quants comes in handy, I often have excited clients phoning up, saying, i've found bricklayers at $2.50/brick who will do 400m2 eg, Brickwork. They start to appreciate what we have to deal with and get on board with (lol, the love train) ... nuf said. OT, It's insane how many contracts builders are handing back to clients.. I've heard of 5 owners this week wanting to start the process again.. this time only better than the last I digress Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Build cost predications post 2022 10Feb 19, 2022 8:50 pm Whats the average contract time now? Are some builders managing to get materials and progress quicker than others? Any improvements in sight? Re: Build cost predications post 2022 11Feb 20, 2022 11:41 am It varies depending on who you ask Salesman will tell you things have improved and they are back on track....(Bullsh!t) One sales man told me his builder has changed commission payment from slab down to walls up... he must be surviving on 2 min noodles for 6 months (humour) Builders are blaming everyone else but themselves for the 6-12 month delays. (the best excuse is it's stuck in council ...8 months????) Council, will tell you they are waiting on RFIs that's not forthcoming? Here in perth they have also allowed 2 year extensions The most disturbing fact is Council wont release the average times from the Issue of the DA to Final Completion certificates.... That number is very disturbing. Ask your Council 12-18 months? OT The blame game continues as interest rates are set to increase after the elections... Funny thing is the governor of the RBA said that wasn't likely for a couple of years how things have gotten worse in a quarter. No doubt the Sh!t will hit the fan after May irrespective of who gets in my2c Goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Build cost predications post 2022 12Feb 20, 2022 12:33 pm We are pretty close to contract signing, we've been given the draft 46 week HIA contract. I've had a look through the planning portal for our area and checked the status of other builds which all seem to be progressing in different stages of that timeline. Ours is a knockdown rebuild, so it'll be interesting to see how long we end up having to rent for. Re: Build cost predications post 2022 13Feb 20, 2022 12:42 pm TrickyRickyDoo We are pretty close to contract signing, we've been given the draft 46 week HIA contract. You better qualify in writing what's the time between signing and slab down. Any delays in between can incur price increases as variation to the contract All the best Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Build cost predications post 2022 14Feb 20, 2022 12:49 pm StructuralBIMGuy TrickyRickyDoo We are pretty close to contract signing, we've been given the draft 46 week HIA contract. You better qualify in writing what's the time between signing and slab down. Any delays in between can incur price increases as variation to the contract All the best Wow, I didn't realise that. We are already concerned about price increases as it's taken longer than 6 months for the pre-build design/Council DA etc, although so far the builder has agreed to keep the price fixed. Probably like most other users here, I'm trying to be informed will hopefully prevent us being caught out by anything. I have found one of the builders houses nearby that had a DA approved in November and the slab is already down, but no frame as yet, so hopefully thats a good sign. Whilst I'm overall concerned about the construction industry, I still have a fair bit of confidence in the builder (primarily based on different friends experiences and the communication and transparency so far). Re: Build cost predications post 2022 15Feb 20, 2022 1:02 pm TrickyRickyDoo so far the builder has agreed to keep the price fixed.... and you have that in writing in the agreement/contract you have signed? Otherwise they will hit you with "sorry it's out of our control..." All contracts have an approximate start and finish date it means bugger all. Check with a solicitor. BTW pre covid builders reviews are worthless at this point in time Goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Build cost predications post 2022 16Feb 20, 2022 1:13 pm StructuralBIMGuy TrickyRickyDoo so far the builder has agreed to keep the price fixed.... and you have that in writing in the agreement/contract you have signed? Otherwise they will hit you with "sorry it's out of our control..." All contracts have an approximate start and finish date it means bugger all. Check with a solicitor. BTW pre covid builders reviews are worthless at this point in time Goodluck No, nothing in writing. Re: Build cost predications post 2022 17Feb 20, 2022 1:16 pm TrickyRickyDoo No, nothing in writing. Track down owners and ask them to do the neighbourly thing... like tell you the truth about their builds Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Build cost predications post 2022 18Feb 20, 2022 1:21 pm StructuralBIMGuy TrickyRickyDoo so far the builder has agreed to keep the price fixed.... and you have that in writing in the agreement/contract you have signed? Otherwise they will hit you with "sorry it's out of our control..." All contracts have an approximate start and finish date it means bugger all. Check with a solicitor. BTW pre covid builders reviews are worthless at this point in time Goodluck Yes, when we built in 1999, ours was a knockdown and build, we had to find a rental for the 6 months, and that was very difficult, very few landlords want short term. In the end, we needed a 3-month extension. From what I'm seeing locally, right now, not many sites look very busy. If 6months was the base mark, back in 2000, today is 12 months to 18 months! The additional costs in rent will hurt, plus material price increases. Honestly, I just would not build now, unless there was no other alternative. Re: Build cost predications post 2022 19Feb 20, 2022 1:46 pm Eric Ozgo StructuralBIMGuy TrickyRickyDoo so far the builder has agreed to keep the price fixed.... and you have that in writing in the agreement/contract you have signed? Otherwise they will hit you with "sorry it's out of our control..." All contracts have an approximate start and finish date it means bugger all. Check with a solicitor. BTW pre covid builders reviews are worthless at this point in time Goodluck Yes, when we built in 1999, ours was a knockdown and build, we had to find a rental for the 6 months, and that was very difficult, very few landlords want short term. In the end, we needed a 3-month extension. From what I'm seeing locally, right now, not many sites look very busy. If 6months was the base mark, back in 2000, today is 12 months to 18 months! The additional costs in rent will hurt, plus material price increases. Honestly, I just would not build now, unless there was no other alternative. It's a tricky situation for us, we are living in our knockdown property and it's not suited for our family so holding off isn't an option. Our options are some quick renovations and sell up, then buy a house suitable for us, or continue with the knockdown rebuild. Our reasons for building is the ability to get what we need for our family (tri level living areas with separation between family members, en-suite for each family member, extra rooms for home office and visiting family. Arrangements to accomodate and manage my shift working (sound proofing etc). Any house we move to would need to be modified to meet our requirements. We've considered the possibility of cancelling the build, swallowing whatever costs that involves. But renovating, selling up and buying somewhere new could still take us 6-7 months. Are any builders actually progressing more quickly? Re: Build cost predications post 2022 20Feb 20, 2022 1:57 pm I would recommend a minor reno, wait, sell and later buy new What ever you plough into a new KDB you will never get back in the short/medium term atm Again check with your council to find out what others are doing in your area Others might disagree Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs 10 years ago was a different software than we use now. it has had a lot of changes over the past years. 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