Source: Quotable Value
Monday, 3 August 2026
Construction costs have remained broadly stable for the second month in a row, with the latest QV CostBuilder update showing minimal movement across key rates in July.
Diesel prices fell sharply month-on-month, down 20.7% in the latest update, helping to reduce costs in fuel-intensive areas of construction work – especially excavation (-4.5%), which recorded the largest average reduction this month and last.
QV CostBuilder spokesperson and experienced quantity surveyor Martin Bisset said the latest figures showed fuel pressure had continued to ease, helping to keep overall trade-rate movement in check.
“Diesel has fallen from June to July, and that saving has flowed through to some of the trades most exposed to fuel costs,” he said.
“Excavation is the clearest example of that this month. It relies heavily on machinery and transport, so when diesel falls, that tends to show up in the numbers pretty much straight away.”
However, not all rates moved lower. Among the 9,600 price changes captured in this month’s update, some trades increased – including concrete blockwork, up 0.8%, and concrete, up 0.9%.
Other notable price rises this month included expanded polystyrene sheet (9.3%), Aquatherm pipework (7.5%), copper pipework (4.0%), ready mixed concrete (3.7%) and wool insulation (3.0%).
Despite this movement, Mr Bisset said overall costs remained broadly stable.
“The headline result is very stable, but that doesn’t mean nothing is moving. We’re still seeing movement below the surface,” he said.
“The recent drop in diesel has helped keep construction cost growth in check this month, but fuel prices remain highly volatile. Recent oil-market movements are a reminder that things can change quickly, especially while the situation in the Middle East remains so fluid.
“We’ll continue to monitor the situation closely. For now, the latest CostBuilder data shows a much steadier picture overall, but it remains to be seen whether that stability will last.”
QV CostBuilder is New Zealand’s most comprehensive online building cost platform covering six centres – Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin.
It encompasses everything from building costs per square metre for warehouses, schools and office buildings, to the supply and install cost of more than 10,000 items, labour rates, labour constants, and more.
Visit QV CostBuilder at costbuilder.qv.co.nz.