Building costs can blow out

Discussion in 'Development' started by MTR, 14th Apr, 2021.

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  1. David_SYD

    David_SYD Well-Known Member

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    Great to hear. Please post progress photos.
     
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  2. Sackie

    Sackie Well-Known Member

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    Following with interest. Thanks for sharing as much as your comfortable with.
     
  3. eyespy1

    eyespy1 Well-Known Member

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    Thanks for sharing your experiences. Out of curiosity, how do you find small builders to tender ? And how do you vet them to make sure they can deliver.
     
  4. wylie

    wylie Moderator Staff Member

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    For our build, we chose the builder we'd always wanted. Other quotes were considerably higher, by a couple of hundred thousand, but did include earthworks. Coorparoo is known for sitting on rock and any builder would allow plenty of padding on any job, especially a known rock area.

    Our own house is sitting on rock, and 23 years ago we had a $16k overrun to get the extra 1m to allow two car tandem, dug out under our house, with a rock breaker for a couple of days. So we know about rock in Coorparoo.

    Our builder suggested we do earthworks separate to the quote at cost plus 10%. That meant we took on the risk of sitting on a seam of rock, but I reckon we saved at least $100k going by the other quotes we had. From memory the earthworks (four townhouses) was around $35k so the other builders would have pocketed a very nice chunk of cash had we kept it in the contract and paid their very padded pricing.

    This saving is thanks to our project manager. His knowledge and oversight of our project was worth his weight in gold I reckon.
     
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  5. MTR

    MTR Well-Known Member

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    Met builder on site yesterday, things our going well, slab down

    Brickies are As scarce as hens teeth atm

    Larger builders are paying as much as $3 per brick, these guys are getting poached. They knock off at 2.30 pm every day:confused:

    18 months ago brickies were paid $1.20 per brick. But boom times today in Perth

    We are locked in at $1.98 and scheduled to start in July. Which is a delay of 1 month, no choice here. At least we have a team which builder has used many times, and good brickies

    We are up $10,000 on our budget, this could change of course??? Anything can happen

    Just waiting on my landscaping quote, builder allowed $8000, we are aiming $6000. We know a landscaper who is good friend of daughter..... mates rates I hope:)

    Once brick work is up we will be flying. This builder has been completing builds within 9-10 months.
     
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  6. MTR

    MTR Well-Known Member

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    Massive savings here. Brilliant

    I have found smaller builders to be far more competitive with pricing. Also my builder will not charge a fee for variations, this is where larger builder will claw back money
     
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  7. MTR

    MTR Well-Known Member

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    So I am hamstrung at the moment waiting for my bricklayers to come to site. Its been one month

    They are now scheduled for mid July, weather permitting

    My only option was to pay $1.00 more per brick or just wait, the later was of course cheaper option

    My builder believes we should be still on target to complete project by April 2022
     
  8. David_SYD

    David_SYD Well-Known Member

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    $1/ brick is a 50% increase in labour costs. I’m not experiencing this in Sydney. That’s expensive. Maybe a bigger shortage in WA?

    April ‘22 should be COMFORTABLE. We’ve built show houses (detached 4 bedders, fully landscaped) in 30 days. Aggressive but doable.
     
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  9. MTR

    MTR Well-Known Member

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    Its all the government grants has caused shortage of brick layers
     
  10. Sackie

    Sackie Well-Known Member

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    Those dam grantees:p
     
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  11. MTR

    MTR Well-Known Member

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    Finally I get something, nice sweetener $60,000 govt grant
     
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  12. Sackie

    Sackie Well-Known Member

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    edde0e95-408b-443f-8088-976a259b694c_text.gif

    :p
     
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  13. David_SYD

    David_SYD Well-Known Member

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    Ahhh I see.
     
  14. MTR

    MTR Well-Known Member

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    Tradie shortage in Perth is unbelievable, my builder said never seen anything as bad as this.

    He said Brikmakers has run out of bricks??
    Average home will take 3 years to build.

    Once we get our bricklayers to site, I should be ok. My small builder has a crew he uses, but there are still delays for me
     
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Yup shortages on materials and trades.
    I can foresee the range of bricks being available will be reduced to keep up with demand. ie instead of 12 cream bricks they might reduce it to 3 so they can just pump out supply.
    Is it your internal or external bricks they can't get?
     
  16. MTR

    MTR Well-Known Member

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    I am ok with my bricks, got them all

    its bricklayer holding things up, and recently the weather. We are all in the same boat:(
     
  17. Gen-Y

    Gen-Y Well-Known Member

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    The words on the building game grape vine.
    Steel price up
    Wood price up
    Concrete price =

    Expect delays for the next 12 months before some relief in June 2022.
    This was told me at the start of 2021.
     
  18. Patrico1966

    Patrico1966 Well-Known Member

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    How much are you actually getting out of the grants? I am aware you are given the set amount by the Govt but at what cost? i.e Everyone is paying extra by the sound of it, Trades, bricks, other materials, there must be holding costs, bank costs, rental costs etc
     
  19. MTR

    MTR Well-Known Member

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    $60,000

    Build Price is locked
     
  20. Patrico1966

    Patrico1966 Well-Known Member

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    Sorry, didnt mean to pry into your particular circumstances. Was more looking at the overall picture and I am hearing a shedful of horror stories.