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How Much Does Builder Costs in Australia: What to Expect

When hiring a builder, a general rule is to allocate 30% to 40% of your total budget for their services. This includes overseeing the project, coordinating tasks, and ensuring everything runs smoothly. The remaining balance covers materials (50%) and council fees and permits (15%).

Per Square Metre Pricing

Builders often use a per square metre (m2) approach to estimate costs. The building cost per m2 can range from $1,300 to $3,900 or more. This figure provides a baseline for calculating the overall cost based on the size of the project.

Hourly Rates

Builder hourly rates vary, typically falling between $70 and $120. The location, type of work, and specific services needed influence these rates. In Australia, the average hourly rate is around $70 to $120.

Specialised Labour Costs

If you're considering renovations, different experts have varying hourly rates:

• Plumbers and electricians: $78 to $125 per hour


• Carpenters, painters, and glaziers: $68 to $107 per hour


• Cabinet Makers: $50 to $75 per hour


• Tilers: $45 to $65 per hour

Factors Affecting New Home Prices

Several factors influence the cost of building a new home:

• Builder and Pricing Structure: Different builders have different pricing structures.


• Construction Type: Timber frame, brick veneer, or double-skin brick affect costs.


• Material Choices: The type and quality of materials, finishes, and accessories impact the overall expense.


• Site Considerations: The ease of access and slope of your property can affect costs.


• Project Type: Whether it's a volume-built project home or a custom-built design plays a role in pricing.

Understanding these factors helps you estimate and plan for the expenses associated with hiring a builder, whether you're embarking on a new build or a renovation project.

Things To Check With The Builders

When choosing a builder, ask essential questions to ensure they're the right fit:

• License: Confirm they're licensed, ensuring accountability and quality. Every state requires builders to hold a specific class of license, indicating the scope of permitted work. You can easily check a builder's license online using their full name or business name.


• Architect Collaboration: Check if they can work seamlessly with your chosen architect. Whether it's constructing homes, offices, or infrastructure, builders may need to collaborate with the architect to turn visions into reality.


• Insurance: Ensure they provide Homeowners Warranty Insurance for financial protection. Builders should have valid insurance coverage, including professional indemnity, public liability, and builders warranty insurance.


• Experience: Specifically, inquire about their experience in knock-down rebuilds or your project type. Whether it's constructing homes, offices, or infrastructure, builders must have the experience to turn visions into reality.


• Pre-Quote Assessments: Learn about the tests and investigations they conduct for accurate cost estimates.


• Quote Timelines: Ask how long it takes for them to provide a comprehensive quote after design approval.


• Build Time: Inquire about contracted build times and their history of meeting deadlines.


• Supervision Load: Assess how many homes their construction supervisors manage simultaneously for focused attention.


• Sustainability Practices: Check if they incorporate thermal wrapping for energy efficiency in standard builds.


• Brick Selection: Ensure a wide range of brick styles and colours for design flexibility.


• Fixtures and Fittings: Verify the quality and brand of appliances, fixtures, and fittings they use.


• Downlights: Understand if downlights are standard and how lighting design is approached.


• Building on Sloping Blocks: If applicable, confirm their expertise and experience with building on sloping sites.


• Variable Contract Costs: Identify aspects of the contract without fixed prices to anticipate potential budget changes.


• Flexibility for Changes: Assess their flexibility in accommodating minor changes during the build.


• Full-Service Offerings: Clarify if they handle all aspects or if additional services like pools or landscaping need separate contracts.