{{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 calls for urgent reform of Tasmania’s Protection Work framework
The Housing Industry Association (HIA) is calling on the Tasmanian Government to urgently reform Tasmania's Protection Work framework, warning the current system is creating unnecessary delays, increasing costs and exposing builders and owners to uncertainty and risk.
Senate Select Committee on Productivity
Opening statement by Simon Croft, Chief Executive Industry & Policy
Housing supply set to fall as thousands of new home contracts face cancellation
"The ban on SMSFs building new homes undermines the governments’ objective of building 1.2 million homes and improving housing affordability,” said Tim Reardon, HIA’s Chief Economist.
More homes not more limits
HIA does not support amendment HOB-S11.0 to impose restrictions on visitor accommodation. We regard this amendment as a misguided attempt to achieve a worthwhile outcome by means that will be ineffective at best and counterproductive at worst.