Caught in ten­der trap

Herald Sun - Property - - Streetscapes - KATE PRESTT

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.’’

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