Why is Building so Expensive?
Recently, Boyan had the opportunity to present at a local business networking event to discuss a question we hear almost daily:
“Why is building so expensive?”
It’s a fair question.
From the outside, it can seem like building costs have suddenly exploded overnight - but the reality is far more complex. Over the past few years, several changes across the construction industry have significantly impacted the cost of delivering projects properly and responsibly.
Understanding these factors can help homeowners and developers make more informed decisions when planning a build or renovation.
Here are the key factors:
Skilled Labour Shortage
• High demand for experienced trades
• Fewer people entering the construction industry
With infrastructure, residential and commercial projects all competing for the same trades, labour costs have increased significantly across the industry.
Increased Regulations in NSW
• Stricter National Construction Code requirements
• Design and Building Practitioners Act compliance
• More certification and documentation
These changes are improving accountability and quality in construction, but they also mean more time and cost involved in delivering compliant projects.
Insurance and Risk
• Higher insurance premiums across the industry
• Increased scrutiny following builder insolvencies
Builders are now required to carry more protection for clients and projects, including Home Building Compensation Fund (HBCF) insurance, Public Liability insurance, Workers Compensation insurance, Professional Indemnity insurance and Contract Works insurance.
Material Price Volatility
• Global supply chain disruptions
• Higher manufacturing and freight costs
While some products have stabilised, many building materials are still significantly more expensive than they were prior to 2020.
The Important Takeaway
When comparing building quotes, it’s important to understand what’s actually included.
If one price is dramatically cheaper than the others, it often means something has been excluded, underestimated, or will appear later as a variation.
At Boyan Built, we believe in clear documentation and full transparency so our clients understand exactly what they are getting from the start.
Ready to get Started?
If you’re planning a new build, renovation or dual-occupancy development, feel free to reach out to our team to discuss your project.