Diesel prices have fallen by a further 6.5% this month, helping to reduce costs in more fuel-intensive areas of construction work, such as excavation (-1.5%), which recorded the largest reduction in June.
Site preparation (-0.4%), substructure (-0.4%) and exterior works (-0.3%), piling (-0.3%) and demolition (-0.2%) also recorded small cost reductions as a result of falling diesel prices.
QV CostBuilder spokesperson and quantity surveyor Martin Bisset said the latest figures showed a much steadier picture than in recent months.
“After several months of fuel-related pressure, construction cost growth has taken its foot off the gas,” he said.
“Diesel prices have eased, which has helped bring down costs in the trades that rely heavily on machinery and transport.”
“However, diesel remains more than 50% higher than at the start of this year, so it’s still an important factor to watch as the situation in the Middle East develops,” he added.
In this update, around 11,000 current material prices were applied to QV CostBuilder’s construction cost catalogue, which covers six centres – Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin.
There were also small reductions in some concrete-related trades across these six centres, with concrete down 0.3% due to ready mixed structural concrete rates falling by 0.7%, and concrete blockwork down 0.5% due to grout fill rates falling 1.1%.
However, not all costs moved lower. The plumbing trade increased by 0.5%, primarily due to higher product prices, while the carpentry trade also increased by 0.2% due to a number of product price increases.
“Some costs have come back and others are still inching upward, but the broader picture is steadier this month,” Mr Bisset said.
“Anyone planning a project should continue to allow for some movement in costs, as some volatility remains.”
QV CostBuilder is an online building cost platform that covers 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.