This Mitchell Brandtman Quarterly Construction Cost Update has been put together to help keep you informed on the movements of the market to better position yourself for your current and future projects.
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This Mitchell Brandtman Quarterly Construction Cost Update has been put together to help keep you informed on the movements of the market to better position yourself for your current and future projects.
All markets across Queensland remain hot with the total value of building approvals hitting new peak levels. While the dynamic of project types is shifting, the sheer volume of new work to deliver continues to compound an already frustrated industry. As anticipated, domestic construction has eased slightly with signs of trade level competition emerging, however the public sector commitment has dominated the latest quarter of data and will continue to drive a divide between small and large scale construction activity and pricing.
The record public sector spend will dominate the conversation and attention of our upper tier Contractors, leaving delivery in the private sector challenged from a capacity, capability and feasibility point of view. Activity levels will continue to influence building costs differently across the various sectors and regions as these packages roll out across their local markets.
Opportunities will continue to emerge in the smaller scale, quick to market type product which suits the current risk averse trade sector. Larger and more complex developments will need to approach the market with an open mind for the foreseeable future.
Mitchell Brandtman’s team of experts is ready to help you with your grant applications for the Go For Gold Fund.
Mitchell Brandtman’s team of experts is ready to help you with your grant applications for the Go For Gold Fund.
The Queensland Government has recently announced Round two of the Go for Gold Fund for schools across Queensland. The Fund is open to schools across Queensland for both new and upgraded sports infrastructure on projects such as athletics pitches, multi-purpose courts, ovals, and more. This means it’s the perfect time for schools to consider upgrading or installing new facilities for their students.
Mitchell Brandtman is ready and able to assist with cost advice and estimates for potential projects as part of the grant application. Our team of Quantity Surveyors has extensive experience working on sporting, recreation and education projects, positioning us perfectly to provide an accurate grant estimate for you and your clients.
For further details on how we can help, please contact Partner, Caitlin Shields PH – 07 3327 5034 or E – cshields@mitbrand.com
More information on the Go For Gold Fund is available at https://www.qld.gov.au/about/b…
Financier Education Workshop!
Back by popular demand, we will again this year, be sharing our knowledge with you and your team members at our Financier Education Workshops.
We’ve created a number of education workshops for Financiers who would like to gain a more thorough understanding of what a Quantity Surveyor does and how we assist Financiers and their clients on a project.
After successfully launching our Financiers’ Education Program in 2018, we are excited to be offering this program again in 2023. Our workshops will be hosted in our Melbourne CBD office on Collins Street and will cover off on topics such as:
– Costs Verification
– Authority Approvals
– Site and Environmental
– Building Contracts
– Builders Check
– Insurances
– Construction Program and Cash Flow
– Construction Progress and Payment
Please click on your preferred date below to register.
For further information, contact: Kristie Parsons kparsons@mitbrand.com or call 03 9944 3030
We look forward to sharing our knowledge with you.
The Mitchell Brandtman Team.
Mitchell Brandtman is pleased to announce the appointment of Julian Chai as Director in the Melbourne office.
Julian’s extensive background in the property industry spans more than 32 years, giving the Mitchell Brandtman team access to a wealth of invaluable experience.
As an Associate Director at NAB for the past 21 years, Julian was responsible for construction risk management for Victoria and Tasmania across NAB’s entire construction portfolio, (Business Banking to Corporate and Institutional) making him a fantastic asset to the Mitchell Brandtman team.
Julian joins Alan Tan as Director of our Victorian business member of our National Board.
Congratulations Julian. We know both our clients and our team will benefit from your experience and expertise.
It’s time to maximise the return on your investment.
This Mitchell Brandtman Quarterly Construction Cost Update has been put together to help keep you informed on the movements of the market to better position yourself for your current and future projects.
Head contractor confidence, capacity and appetite for risk continue to wreak havoc across larger scale private developments, with attention being largely turned to the less speculative public spending commitments mounting on the horizon.
This is distinguishable from the small scale residential and industrial sectors which both appear to have rebuilt enough competitive tension across trades to keep the fair value for money position somewhat in check. This will create a pricing divide and we expect to be dealing with a ‘two-speed’ economy in terms of construction pricing until healthy competition returns to the mid and upper tier tender market – at both a sub-contract and head-contract level.
Public spending commitments across all parts of Queensland are at stimulus measure levels, with a clear sight of work until post Brisbane Olympics and Paralympics. This will absorb more than the capacity we currently have to deliver our current volume of work. Regional areas are already struggling to make anything not just ‘stack up’ but actually meet the fundamental fair value equation.
Opposing forces usually lead to sparks, which we have already seen across the institutional and private sectors. However expect that to remain the case across the typical tender market for some time yet – and for it to likely get worse before it begins to improve.
Projects that are successfully traversing the feasibility and procurement minefield are leveraging strong relationships or simply have the ability to be dynamic based on their own unique set of challenges.
Back by popular demand.
We will again this year, be sharing our knowledge with you and your team members at our Financier Education Workshop.
We will again this year, be sharing our knowledge with you and your team members at our Financier Education Workshop.
We’ve created this workshop for Financiers who would like to gain a more thorough understanding of what a Quantity Surveyor does and how we help Financiers and their clients on a project.
The workshops will be held at: Level 11, 66 Clarence Street Sydney 2000
If you want to better assist your clients, then this workshop is for you!
This half day workshop will cover off on topics such as:
- Role of the Financiers’ QS
- Financiers’ QS Reports
- Contracts and Procurement
- Construction Updates
- Signs of Distressed Projects
Click on the workshop dates below to register: (please ensure you list your attendance date in order of preference)
Cost to attend the workshop is $75 (ex GST)
Please feel free to share this invitation with your colleagues should it be of benefit to them.
Numbers are strictly limited so register your interest now to avoid missing out.
The Mitchell Brandtman Financiers’ QS team.
FULLY BOOKED
Please contact Lisa Hemming if you would like to be added to the waitlist lhemming@mitbrand.com or 3327 5021
Back by popular demand but ramped up by 1000% !!
We will again this year, be sharing our knowledge with you and your team members at our Financier Education Workshop.
We’ve created this workshop for Financiers who would like to gain a more thorough understanding of what a Quantity Surveyor does and how we help Financiers and their clients on a project.
If you want to better assist your clients, then this workshop is for you!
Date: 11th May 2023
Venue: Dexus Place, Level 31, 1 Eagle Street, Brisbane
Time: 8:30am – 1:00pm
Morning tea and lunch is included
Understanding our Reports
Initial Reports
Progress Assessment
Distressed Project Situations
Dealing with Unfixed Materials, Deposits, etc
Budget Review Process
Market Cost Review
Benchmarking
Detailed Estimating and Bills of Quantities
Procurement and Contract Types
Traditional Fixed Price Style Contracting
Construction Management and Cost Plus Contracting
Owner Builder / Developer Builder
Early Contractor Involvement (ECI)
This workshop will also include case studies that will be based around a mock site inspection etc
Please email Lisa Hemming to book your attendance lhemming@mitbrand.com
The Recent Building Price Spikes Have Impacted Insurance Values!
In the past two years, we have seen a significant increase in the number of requests for Replacement Cost Estimates, which is a natural trend when building prices dramatically shift – as we have recently witnessed.So, what is a Replacement Cost Estimate and why is now the perfect time to engage a Quantity Surveyor to ensure you have an up-to-date Replacement Cost Estimate?
Put simply, a Replacement Cost Estimate is a measured estimate that a Quantity Surveyor can provide which indicates the cost that must be spent to replace a current asset in the current market should the unthinkable occur. For example, the price that it would cost you to rebuild your home or place of business in the event it was destroyed by flood or fire.
Why is it so important?
Replacement Cost Estimates are crucial for a number of reasons, but the most significant is insurance. An up-to-date Insurance Replacement Cost Estimate ensures that building assets are accurately covered by your insurance provider in the event of significant damage. Given the volatility of the current market, when paired with the increasing inflation rate, it is imperative to have an accurate Insurance Replacement Cost Estimate on your building assets. Furthermore, our report will provide a comprehensive Replacement Cost Value of the property in the event of a natural disaster or accident, so the property owner will not be left out of pocket should they need to rebuild.
Having a considered estimate position on your asset will also ensure you are not over insuring and paying unnecessary premiums – because as we know, not all assets are the same.
How do we calculate your Replacement Cost Estimate?
Our team of expert Quantity Surveyors will provide a comprehensive replacement cost value of the subject building for insurance purposes, including costs relating to demolition of the existing building, professional fees, estimated construction costs, and cost escalation.
Contact us to ensure your building assets are accurately covered. assetservices@mitbrand.com 1800 808 259