A builder’s hourly rate can vary from $70 to $120. Builder prices may vary depending on your location, the nature of work, and the type of building services you may require.
Whether you want to know the cost of building a house, the price of a home renovation, or how much to pay for a house and land package, knowing how much professional builders charge is important.
In Australia, the average amount to pay for a builder’s labour is around $70 to $120 per hour.
If, for instance, you are looking to renovate your home, consider aspects such as plumbing and electrics, walls and floors, woodworks, fit-outs and furniture, which influence the final cost.
Home renovators such as plumbers and electricians charge differently. The indicative costs of labour are:
- $78 to $125 per hour for plumbers and electricians
- $68 to $107 per hour for carpenters/joiners, painters and glaziers
- $50 to $75 per hour for Cabinet Makers
- $45 to $65 per hour for Tilers
You will also need their expertise if you are building a new home.
Note: Overhead and profit costs also add to the builder’s hourly rate. The majority of the prices above is based on Rawlinsons’ Australian Construction Handbook 2018, Edition 36.
Types of Building Services
Hire a builder based on what the project requires. Here are the common types of jobs that a licensed builder can do.
Granny flats
Granny flats can help to increase one’s property value. They are either built to provide additional space or source of income. The cost to build a granny flat can range from $10,000 (pre-fabricated) to $120,000 (custom).
Home extensions
Building a home extension costs about $965 to $2,710 per square metre. The scope of work may be a ground-floor (single storey) or upper-floor addition (second storey) depending on the property and site condition.
Home extension projects can be less expensive than moving to a new home.
House and land packages
Homeowners who want to invest in house and land packages may choose between buying a bare land granting construction loan or ‘turnkey’ homes ready for occupation. Factors such as the site location, builder prices and building complexities affect the cost.
New home
The cost of building a single-storey, full-brick house can be anywhere between $1,720 to $2,830 per m2. Expect pricing fluctuations on new homes built with different materials such as timber or concrete.
Project management
Construction project managers play a crucial role in general building work. One of their responsibilities is to stay within the planned budget from conceptualisation to finalisation. The hourly cost may range from $90 to $120.
Restumping
Restumping is an effective way of keeping the property’s structure intact. The cost of replacing old stumps and new installation can range from $10,000 to $25,000 for homes with one to three bedrooms.
Renovation
Home renovation projects can cost around $42,000 to $135,000 covering the bathroom, kitchen, bedroom and dining area. The expenses may include the number of building materials, builder’s rates per hour and other factors.
Commercial
The cost to build a commercial structure ranges from $2,000 to $5,500 per m2. Commercial buildings require a more comprehensive and strict construction plan to ensure that the process deliberately complies with regulations.
Factors that Impact the Cost of a Builder
There are important factors you should consider when calculating the cost of your builder.
1. Builder’s experience
The experience of the builder you are hiring considerably affects the building cost. Choosing to hire a builder with several years of exposure in providing contracts to residential or commercial owners incur higher fees.
Whom you hire will determine the outcome of the project. Experienced builders have specialised techniques and equipment to ensure that each phase of the project is carried out with fewer mistakes and disruptions.
2. Type of construction
How much builders charge will depend on factors such as the type of building works they are asked to do.
Identify your requirements before you hire a builder. Do you need to raise and restump your home? Are you extending or renovating your home? Is your property eligible for a granny flat construction?
By becoming aware of how each project varies in costs, you can make a workable budget that can help builders provide you with building estimates aligning to your needs.
3. Area of specialisation
Builders build the same structure. The only difference is the scope of work. Project builders generally have a higher volume of constructed homes than what custom builders complete each year.
In terms of cost, custom builders may charge more as the kind of structure they build is tailor-made to suit your exact needs and preferences. This aspect factors in the building cost.
Note: HIREtrades gives you access to local builders that can help you obtain up to three free quotes. You can find Builders in Sydney, Home Builders in Newcastle, Builders in Bunbury and other more cities and capitals in Australia. Always have a contingency fund to prepare you when unexpected events arise in the process.
Things to Consider Before Hiring a Builder
There are a few important things to check before you hire a builder.
1. Prepare a cost breakdown.
Whether you’re building a new home or renovating your property, the indicative amount of percentage to spend on materials is 50%. Set aside 35% for labour, and 15% for council fees and approval.
The breakdown of the cost may vary based on your needs and expected outcome.
2. Find the right type of builder.
If you’re restumping an old house, choose to hire a builder with varied expertise in restumping projects. If you’re building a granny flat, then it’s more practical to find a builder that specialises in granny flat construction.
3. Validate the builder’s licence and insurance.
As you plan for a construction project, ensure that you verify the credentials of your prospective builder. Licensing requirements vary per State. Check if the builder’s licence number and insurance are valid and up-to-date.
Each state or territory imposes a different set of rules for builders.
4. Seek customer references and feedback.
Reputable builders have a verified list of satisfied clients. Before hiring, ask for a copy of customer references to acquire reliable feedback. If they recommend the same builder you are looking to hire, then you might consider.
Hire a builder that respects your timeline and budget requirements. Ask for assistance to help maximise your finances.