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Building costs have risen strongly in recent years and it is important that your building is accurately valued at replacement cost for insurance purposes. If you have not reviewed the “sum insured” on your home recently, then you should do so.

To give you a general guide as to recent trends in building costs, you can see Rawlinsons Construction Cost Guide. There have been large increases in costs in WA in recent times. Part of this increase is due to higher energy costs, material shortages and skilled labour shortages. This means that average building costs per square metre in Perth are currently around $1,000 – $1,250 a square metre. Note that these figures are for single storey brick and tile project homes, of medium finish. Of course figures can vary greatly depending on the standard of finish, quality of materials and fittings etc. Contract built homes are more expensive, and some upward allowance should be made in these situations.

If you live outside Perth, you should allow an additional margin to reflect higher building costs in these areas. Add 5 per cent markup to Perth building costs if you live in Busselton, 7 to 10 per cent in Geraldton, 45 per cent in Broome, and 50 per cent in Derby.

For two storey construction, upper floor areas should be valued at around twice the construction cost of single storey building work. Garage areas are less expensive to build so some allowance should be made for this in your replacement cost estimate.

Finally, typical renovation costs are around $2,000 – $2,500 per square metre.  Note that these costs are average only and vary widely depending on the specific job conditions.

Click here to view the Master Builders Q&A – What does Building a Home Cost featured on Home in WA.

5 responses to “Building Costs”

  1. Deirdre says:

    Cost effective customised project planning solutions tailored to your needs in the resources , buildings and construction industries. Visit http://www.myplanningworld.com

  2. wayne says:

    Can you recommend a software package for estimating. Particularly for renovations

    • mbawa says:

      Hi Wayne,
      Thanks for your enquiry! We are not able to recommend a particular software package, however please feel free to visit our Find A Member page as we have IT/Software providers there.

      Regards

      Master Builders

  3. Rosemary says:

    Some 15 months after I moved into my new home I received an invoice from the building stating that I owed almost 50% more than the written quote for cabinetry and sinks. Am I responsible for this sum even though I was not informed of such a variation almost two years ago when the house was being built?
    Further to this, included in the invoice were charges I was not made aware of either before or during the build This includes, costs of excavation of a trench from the verge to the house for water and power, a meter box and cable for power.
    I would also add that I paid separately for site works after the build began not listed as a progress payment, as the builder did not have the levels right

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