Construction cost-growth stabilises as fuel costs ease

Construction cost-growth has stabilised as fuel costs continue to ease.

"After several months of fuel-related pressure, construction cost-growth has taken its foot off the gas," QV CostBuilder quantity surveyor Martin Bisset said.

"Diesel prices have eased, which has helped bring down costs in the trades that rely heavily on machinery and transport."

The latest QV CostBuilder's June update indicates there was minimal cost movements across key rates.

Diesel prices fell 6.5 percent, helping to reduce costs in fuel-intensive areas of construction work, such as excavation, which fell 1.5 percent.

Other costs also recorded small diesel-price related falls including site preparation (-0.4 percent), substructure (-0.4 percent) and exterior works (-0.3 percent), piling (-0.3 percent) and demolition (-0.2 percent).

"However, diesel remains more than 50 percent 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," Bisset said.

There were also small reductions in some concrete-related trades across six main centres, with concrete down 0.3 percent, due to ready mixed structural concrete rates falling by 0.7 percent, and concrete blockwork down 0.5 percent, due to grout fill rates falling 1.1 percent.

The plumbing trade increased by 0.5 percent, while the carpentry trade also increased by 0.2 percent, along with produce price increases.

"Anyone planning a project should continue to allow for some movement in costs, as some volatility remains," Bisset said.