Building a property is a special time that should be met with much excitement by you as the new owners. Over recent years there have been several changes across the construction landscape that have led the process to become unpredictable and stressful for builders and owners alike.
Construction costs across Australia have risen at a rapid rate over the last two years, and they are forecast to continue to grow into 2022. What is the cause of this rise? In short, COVID-19 has changed the construction landscape with many supply chains impacted due to border closures and workforces impacted due to constant changes to restrictions and vaccination requirements.
Throughout 2021 we saw an increase in building material prices that have prompted some trades to link supply rates as a condition of tender pricing. This means that materials are subject to a price adjustment should the rate rise. If you plan on building your dream home, we have some of our top tips for you to help reduce the cost and manage your expectations of your next construction project.
Tip 1. Consider Alternative Products and Materials
Currently, there are challenges with the supply of building materials that has seen the prices of certain materials skyrocket. This has very quickly blown many construction projects budgets well above what was initially quoted, which isn’t fun for builders and clients alike. So how do you get around this? While you might have your heart set on a specific material you need to ask yourself – is it worth the cost and delay in the project completion? During these times it is best to be flexible and if you are open to other materials this is the best position that you can be in. Talk to your builder and ask them to recommend similar materials that are more readily available that will still achieve the look and feel for what you would like to achieve, whilst not compromising on quality and aesthetics.
Tip 2. Create a Project Plan and Budget
Before you get started, it is important to set realistic expectations of the project in terms of both time frame and budget. Start by having an honest conversation with your builder to create a time frame that is realistic for the project completion. Then repeat the same process with your budget. This will make the process for both you and the builder more enjoyable.
Importantly, always remember to allow a contingency amount in your budget for any unforeseen costs that may arise. For example, if your chosen materials aren’t available and you need to go with a more expensive option, or the project is delayed due to unavailability of items. By having a contingency amount allocated in your budget these changes will not break the bank or leave you feeling stressed and overwhelmed.
Tip 3. Find a Builder that You Trust
Embarking on a building journey can be stressful and nerve wracking at times, especially if you are inexperienced with the construction industry. Importantly, look for a builder who is a registered building practitioner with the relevant state or territory. Find a builder that you trust and feel comfortable communicating with on all elements of the project. Reach out to their references and have a look at previous projects that they have completed. If you are unsure on where to start feel free to contact us at Conrad Construction & Management.
