Caught in tender trap
ENOVATION costs could drop 5 to 15 per cent in the next six months, according to a leading renovation group.
A sharp drop in the number of planned commercial projects around Australia is expected to create a surge of tradespeople moving to the residential sector.
Archicentre’s quarterly cost guide says materials usually account for 46 per cent of the cost of new houses and major renovations. The secondhighest expense, labour, accounts for 33 per cent. Fees, levies, permits and GST make up the rest.
Though Archicentre says prices are set to fall, accepting the cheapest quote is not always wise.
Archicentre general manager David Hallett says renovators and builders should check builders’ credentials to make sure they are registered, have appropriate insurance and can show examples of their work and that they can complete the project on time.
The architect’s job includes preparing and managing the tender process.
‘‘Many people gain a quote only on the structural part of the renovation, but fail to factor in that more than 50 per cent of renovation costs are found after lock-up, in fittings and finishing,’’ he says.
‘‘Some renovators are paying 60 to 80 per cent more for their renovations because they have been poorly planned and they fail to tender their projects.’’