Construction price rises remain relatively contained, despite significant fuel pressures.
The latest QV CostBuilder monthly update incorporates more than 11,000 of the latest material price movements across six main centres, offering a detailed view of how construction costs are responding to current market pressures.
It shows that overall construction cost inflation remains relatively modest, with elemental and trade rates both increasing by an average of 0.3% between March and April 2026.
However, rising diesel costs – up 37.6% in a month and 109.8% since February – are continuing to flow through, particularly in fuel-intensive areas of work.
In the trades, excavation recorded the most significant increase this month, rising by 7.9% since QV CostBuilder’s last update. Piling and demolition also increased by 1.6% and 1.3% respectively, largely due to higher diesel prices.
Diesel costs also fuelled rises in the elemental costs, including a 2.2% increase in site preparation and a 1.9% increase in substructure costs, with exterior works also climbing 1.9% over the month partly for the same reason.
QV CostBuilder spokesperson and quantity surveyor Martin Bisset said fuel had emerged as the most significant construction cost driver this year, amid ongoing conflict in the Middle East.
“Fuel has really become the dominant cost driver in recent months. That’s where the most upward pressure on construction costs is coming from currently,” he said.
“What makes fuel different to other inputs is how broadly it feeds into the construction process – from machinery on site through to transport and materials – so the impact tends to build over time rather than show up all at once.”
“The key thing is that price pressure is building, even if it’s not fully reflected in headline cost increases just yet. Hopefully this will still be a short-term spike and price pressure will eventually ease,” he concluded.
CostBuilder is an online subscription-based building cost platform, powered by state-owned enterprise Quotable Value (QV).
It covers everything from the building costs per square metre for warehouses, schools, and office buildings, to the approximate retail supply cost of GIB and more than 8,000 other items, plus labour rates, labour constants, and more.
Visit QV CostBuilder at costbuilder.qv.co.nz.
