Market Update – Looking Ahead From Mid-2021

Market Update - Looking Ahead From Mid-2021

Market Update – Looking Ahead From Mid-2021

In the covid-19 environment and uniquely placed as a specialist in the renovation space, Rebilt directors recognise the desire of homeowners and renovators to move ahead with their project with some plausible certainty.

Rebilt also recognises some undercurrent with various market forces that are likely to impact on renovation project prices in the months ahead. In a spirit of transparency Rebilt wish to highlight the following for current and prospective renovation clients:

Duty Of Care

Builders have always had a duty of care to administer for their projects however in the light of such failed projects as the Opal Towers the Australian Government have placed a greater obligation on duty of care through the new Design and Building Practitioner’s Act 2020 NSW. In fact on June 11, 2020 the NSW Parliament passed new building laws that levy duty of care responsibilities for design and construction bringing about “an enforceable duty to exercise reasonable care to avoid financial loss to the owner caused by defects.”

This Act has been met with mixed feelings among builders and trades however Rebilt directors welcome and embraces the initiative to level the playing field of overall project stewardship but recognise that project management, administration and collaborative hours may increase across the industry as the weight of this Act is felt across the building industry as a whole.

It is perceived also that some generalist builders may bow out of project managing the more “problematic” structural renovation projects wishing to avoid the new and more stringent accountability imposed by the DBP Act.

For more information on this read our current article titled “New Design and Building Practitioners Act 2020 NSW Imposes Duty Of Care Obligations.”

Timber Supplies

It is reported that the Australian bushfires diminished local timber supplies. Many homeowners are unaware that the Australian timber industry has been and continues to be subject to supply and demand issues for construction timber. This has been due to higher global and domestic demand with timber and LVL supply, [relied upon for structural renovations] with local suppliers struggling to meet the needs of the market. It is likely that this shortfall in supply will push up timber pricing. Further increases are already tabled. Supply remains under pressure. Rebilt is in communication with suppliers to manage projects.

Other Products

Rebilt continues to receive incoming price increase notifications from reliable suppliers due to an unforeseen rate of raw material demand such as steel, copper, PVC, resins driving some cost increases due to global price volatility and increases in overseas freight costs.

Meanwhile Rebilt are shortening the lead times on all quotations in the need to secure project materials. Thank you for your patience and understanding as our administrative team continues to work hard to secure additional product and from alternative sources at times.

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