Experts Tell: How to Plan Your Renovation When Prices Are Rising
Worried about how price hikes will affect your reno? Here, experts share insider tips for keeping your budget in check
Material price rises, product delays and demand for tradies at an all-time high – renovators are experiencing pressure from all sides at the moment. Choosing products early, seeking advice from your builder or designer, and being flexible with your selections are key to keeping your budget in check and your project on track, say the four design and building experts we spoke to. Read on to pick up more of their insider tips.
“I believe the increase in interest rates and in products and materials has changed the face of our industry,” says Alan Nasrallah, interior design director and founder of Indulge Renovations. “Rather than allowing our designers to choose just one product supplier for a project [which was previously often the norm], most clients now want us to provide them with two quotes, giving them the option to choose more cost-effective products.”
Planning to renovate? Find a builder on Houzz and have a conversation about your plans and how to mitigate rising material prices
Planning to renovate? Find a builder on Houzz and have a conversation about your plans and how to mitigate rising material prices
Photography: Hcreations; builder: REP Building.
“International shipping delays, the tripling of container prices and port fees, and a drop in raw material supply have all contributed to a rise in project costs,” says Maria Cerne, interior designer and principal at Studio Black Interiors. “Locally, delays due to lockdowns and transport issues, along with reduced staffing capacity, have also played a significant role.
“International shipping delays, the tripling of container prices and port fees, and a drop in raw material supply have all contributed to a rise in project costs,” says Maria Cerne, interior designer and principal at Studio Black Interiors. “Locally, delays due to lockdowns and transport issues, along with reduced staffing capacity, have also played a significant role.
“Price rises have impacted the overall build and renovation costs for homeowners, which flows down to the budget for finishes and fixtures. We have had to adjust the materials we might typically use in favour of comparable products that are more reasonably priced and accessible,” says Cerne.
“For example, if an Italian tile had been our first choice, we are now specifying tiles available locally that are more reasonably priced and have a shorter lead time. Rather than specifying specialty finishes, such as brushed brass for plumbing fixtures, we are sticking to the more classic, standard finishes, such as chrome and nickel.”
“For example, if an Italian tile had been our first choice, we are now specifying tiles available locally that are more reasonably priced and have a shorter lead time. Rather than specifying specialty finishes, such as brushed brass for plumbing fixtures, we are sticking to the more classic, standard finishes, such as chrome and nickel.”
If you’re building or renovating, here are some ways you can mitigate rising costs
Melissa Woodcroft, director at Concepts Unlimited Design, says:
Melissa Woodcroft, director at Concepts Unlimited Design, says:
- Work closely with your builder and engineer during the design phase to limit additional costs, such as minimising spans of beams and using readily available materials.
- Find a builder and book a spot in advance with a good lead time between signing the contract and build commencement. Waiting means your builder can plan and book trades and order materials in advance.
- Choose fixtures and fittings early: making selections at the last minute will often mean less choice, higher costs and poorer-quality items.
- Work with an experienced interior designer who knows the best products at the best prices, and who understands warranties and where to purchase them. Using an interior designer will ensure you can avoid provisional cost amounts (estimates) from your builder for specifications that you can have a fixed-price contract on, which avoids variations.
Photography: Daniela Fulford Photography.
- Stage your build: Work with your builder and establish whether non-essential work can be completed at a later time, such as non-essential cabinetry.
- Consider a smaller initial renovation but work with an experienced building designer on creating a master plan that can be executed at a later stage. Staging a build doesn’t mean the project is less expensive overall – in fact, it often means the project will cost more in the long run – but it can allow clients to at least get some of the most urgent work done in manageable-sized pieces.
Photography: Hcreations; builder: REP Building.
Cerne says:
Cerne says:
- Work more closely with your builder and interior designer in the early stages of the project and seek expert input into all aspects of the design, from the floor plan to the material selections before the project commences.
- Order items such as appliances, windows, doors and plumbing fixtures months in advance to ensure they are available and ready in time for construction.
- Buy and source materials locally and look for Australian- or New Zealand-made products to reduce waiting times.
- Be flexible so you can pivot and adapt to changes, price increases or delays with an alternative plan or substitution.
Nasrallah says:
- Rather than natural stone, consider a porcelain look-alike: Everyone loves natural stone, but the cost can blow your budget out of the water. A porcelain alternative can reduce costs significantly.
- If your heart is set on natural stone, ask your designer or builder whether a stonemason has off-cuts that you can use for smaller projects.
- If you want coloured tapware, choose pre-made styles rather than having tapware custom-coloured. You might have to compromise a little on the colour, but the off-the-shelf options have grown significantly in recent years, so chances are you may just find the perfect hue.
- Choose a ready-made bathroom vanity rather than having one custom-designed. There are a large number of companies producing attractive off-the-shelf vanity units at a fraction of the cost of custom styles – some even come with marble benchtops. My only criticism would be they are limited in sizes, but a good designer will make them work in your space.
Turrell says:
- Buy products and appliances early and store them, if necessary. This helps secure costs in a fragile climate.
- Be efficient with your design and minimise the use of steel where possible, subject to engineering requirements. Using timber beams instead of steel will help mitigate steel-price increases, which are only expected to continue. While there are ongoing price rises and challenges sourcing timber, it is still cheaper than steel.”
- Be patient on the timelines of your project. This allows your builder to get multiple trade quotes and means you’re less likely to be stuck paying a premium price for super-busy trades.
- Be open to sharing some of the price rises with your builder. This can help your builder finish the project and not feel pressured into thinking they have to cut corners.
Your turn
How have you and your trades team dealt with price rises? Share your advice and experience in the Comments below, like this story, save the images for inspiration, and join the renovation conversation.
More
Keen to learn more cost-cutting tips? We have you covered with this need-to-know guide for all new builds or renovations – Cut Costs: How to Choose the Right Insulation at the Right Price
How have you and your trades team dealt with price rises? Share your advice and experience in the Comments below, like this story, save the images for inspiration, and join the renovation conversation.
More
Keen to learn more cost-cutting tips? We have you covered with this need-to-know guide for all new builds or renovations – Cut Costs: How to Choose the Right Insulation at the Right Price
“The price rises have affected us enormously,” says Neil Turrell, managing director at Turrell Building. “We have a few projects that are valued over several million dollars each and the duration for these kinds of builds is two years plus. These projects were fixed contracts, so we have had to wear the cost of all the price rises on the complete builds over the past two years – that hurts when building materials, deliveries and trades have gone up 35 percent and builders only work to a 20 percent profit margin generally.
“It has been so tough and cash flow has been hit hard. The good news is that we have just completed two of these projects and have now moved onto projects that have been costed with the revised products and services pricing,” he says.