AVK Homes was recently featured in a news segment discussing the pressures facing the construction industry right now. It’s an important conversation, and one we want our clients and community to understand clearly.

Watch the full interview here: Instagram | Facebook

Why the Industry Is Under Pressure

The escalating conflict in the Middle East is driving a significant fuel crisis and construction is feeling it directly.

Fuel underpins almost everything on a building site. Excavators, concrete trucks, and concrete pumps have all increased their prices. And it doesn’t stop there. Oil-based products like plumbing pipes, electrical fittings and fixtures  are expected to follow as the impact works through the supply chain.

The numbers are already moving. Plumbers are up 6.5%. Concrete is up 8%. Delivery costs have jumped from around 1% to 10%. On a typical build, that translates to roughly 1–2% on the overall cost  and that figure is likely to grow if conditions don’t stabilise.

What to Watch Out For

Not every price increase being passed on right now is legitimate. Some builders are using market conditions as cover to raise rates across the board.

As Alex puts it: “If the builder or tradie can’t articulate what has increased and by how much, I would suspect it’s no longer a fuel levy. It’s an opportunity to raise all rates.”

Ask for specifics. If you can’t get a clear answer, that tells you something.

How AVK Homes Is Handling It

We’re not raising all prices across the board. Right now, the additional cost impact is around 1–2% of a total build, which is manageable, and we’re wearing that for our clients.

If conditions continue to worsen, we’ll be honest about what needs to change. In the meantime, we’re identifying the most volatile cost components. Excavation, concrete, plumbing and moving those to a provisional sum or prime cost. Clients get honest pricing on stable items, and full transparency on the parts that aren’t.

No surprises. No fine print.

Will You Pay More?

It depends on where you’re at.

If you have a signed fixed-price contract, that’s your protection. There are very limited avenues for a builder to increase costs mid-build. If you’re on cost plus, or haven’t signed yet, pricing will need to reflect current conditions.

This is why having a signed contract in place early with the right builder matters more than ever.

Is It Still a Good Time to Build?

Understanding the difference between feasibility rep

Yes. But go in with eyes open.

“It’s still a good time, but it’s even more important to qualify your builder,” Alex says. “Look for clarity and competence.”

The housing crisis hasn’t gone away. Demand is real. And with over 3,500 building companies collapsing in the past year, choosing the right builder is your single biggest decision.

Here’s what’s driving those collapses: builders cutting margins to win jobs, then getting caught when costs rise and fixed-price contracts leave them nowhere to go. The ones still standing are the ones who priced honestly from the start.

Our advice: build in a 10% budget buffer. It’s not pessimism, it’s good planning.

Questions to Ask Your Builder Right Now

• What costs on my build are most exposed to current price pressures?
• How are you handling provisional sums and prime costs?
• What’s your process if prices keep increasing during the job?
• Can you walk me through what’s actually changed in your supplier pricing?

“If the builder is vague, walk.” — Alex

Our Commitment at AVK Homes

If something changes that affects your project, you’ll hear it from us directly. We plan early, quote carefully, and stay involved.

Want to understand what these conditions mean for your specific build? Get in touch with AVK Homes to start planning with clarity.