{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationFixed price contracts under pressure from global events
Fixed price contracts under pressure from global events
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
HIA Managing Director Jocelyn Martin said while global events such as the conflict in Iran, are contributing to cost volatility, the impact on builders is being shaped by the way the industry operates.
“Residential building is very different to many other sectors. Builders typically enter into fixed price contracts well before construction begins, often many months in advance.
“That gives consumers price certainty, which is a good thing, but it also means builders carry a level of risk that other industries are not exposed to in the same way,” she said.
“Recent increases in fuel, freight and some material costs are flowing through supply chains, adding to the broader cost environment builders are managing.
“For most businesses, rising costs can be passed on relatively quickly. In residential construction, that’s simply not how it works,” Ms Martin said.
“Once a contract is signed, the price is locked in. Builders then have to navigate whatever changes occur between signing that contract and completing the home.
“The industry has always managed cycles, that’s nothing new, but when cost movements are sudden or unpredictable, it reinforces just how exposed fixed price contracting can be.
“But there are practical steps governments can take to help ease pressure on builders without undermining consumer protections or impacting the budget.
“Improving the speed and consistency of planning approvals is one of the most immediate ways to reduce risk,” she said.
“The longer the gap between contract signing and construction, the greater the exposure to cost changes. Faster approvals mean builders can get on site sooner and reduce that uncertainty.”
She said investment in enabling infrastructure to unlock shovel-ready land, along with more efficient supply chains, would also help stabilise costs across the pipeline.
“Getting more land to market and ensuring it is properly serviced helps keep projects moving and reduces delays that can compound cost pressures,” Ms Martin said.
“Equally, policies that support workforce availability, whether through apprenticeships, training or targeted skilled migration, help ensure projects are delivered on time and on budget.
“The more stable and predictable the pipeline, whether that’s costs, approvals or supply, the better outcomes we’ll see for both builders and home buyers,” concluded Ms Martin.
For more information please contact:
HIA Housing Scorecard - Victoria sliding further down the ladder
HIA has released the latest version of its Housing Scorecard. Once again Victoria is underperforming and has now fallen below New South Wales. Only Tasmania, the Australian Capital Territory and the Northern Territory keep Victoria from claiming the wooden spoon.
Tasmania at Bottom of National Housing Scorecard as Supply Crisis Deepens
Tasmania has ranked last in the national HIA Housing Scorecard released today, underscoring a persistent failure to deliver enough new homes to meet current and future housing demand.
National housing report puts Western Australia at the top of the table
“Western Australia retained its status as Australia’s strongest home building market, even extending its lead, atop HIA’s latest Housing Scorecard,” stated HIA Senior Economist Tom Devitt.
HIA welcomes $45 million Budget commitment to drive EPBC reforms
“The Housing Industry Association (HIA) welcomes today’s commitment by the Federal Government of more than $45 million over the next 4 years to fast track implementation of the key reforms to the EPBC Act,” said HIA Managing Director, Jocelyn Martin.