Four Walls Architecture Notice Escalating Building Costs

Amy Hendry, founding director of Four Walls Architecture reports that the prevailing theme in their office at the moment is escalating building costs, and Amy has noticed that there are a few factors at play, not least of which is labour rates. Experts are saying the current labour shortage will exist for several years yet, meaning the price tag on houses could continue to rise owing to labour rates going up. All of the major building cost imputes have increased including materials, contractors' and sub-contractors' labour and, of course, consent fees, building levies, drawings and occupational health and safety requirements.

As Amy explains, “Builders are getting busier and busier, and they don’t have to sharpen their pencils as much anymore, and supply rates are going up – suppliers (e.g. window joinery, roofing) are also getting busier, competition is lessening, and the blunt pencil applies!” Another factor is that some industries, in particular steel and timber, have increased their supply costs over the last 18 months, and the Four Walls Architecture team are finding that jobs which they could comfortably ballpark at $3000/sqm, are now costing more like $3500-4000/sqm. As Amy says, “It’s unpredictable, and requires a careful approach, so that clients aren’t faced with budget blowouts and disappointment.”

Property developers are warning that rising construction costs will undermine the Government’s affordable housing plan, with the cost of building a house up almost 50% in some areas in just two years, and combined with rising land prices they say this makes building an affordable house almost impossible. Building costs are rising faster than inflation, and some big costs, such as development levies, health and safety requirements, and tens of thousands of dollars just to connect to the town water service didn't even figure 20 years ago.

However, there is one good reason why building costs are escalating is that these days people expect better quality construction and environmentally friendlier, warmer and more efficient homes. This means that around one third of rising costs are because of changes in the nature of materials used, such as high value insulation, good quality cladding materials, and double-glazing. “People are much more savvy in their expectations of how their house should perform thermally and maintenance-wise over its life,” Amy comments.

Amy and her team are constantly working on ways to ensure that their clients are not faced with a budget blowout, and can provide a full service from concept design and working drawings through to on-site contract administration and observation. For more information on these Auckland architects please go to http://www.fourwallsarchitecture.co.nz .