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Civil Project Partners Launch Construction Materials Shopping Basket Guide
With construction materials pricing and delays causing significant pain to the entire construction and infrastructure sectors, Civil Project Partners is delighted to launch the Construction Materials Shopping Basket Guide, a handy tracker of the key materials utilised in typical road construction projects.
“The cost of critical materials for the construction sector is being challenged by significant pressures from global supply chain issues to competition for resources from projects across Australia,’ said Civil Project Partners’ Ryan O’Neill.
“The Construction Materials Shopping Basket Guide is calculated by analysing the price of the industry’s most common materials weighted by proportion for a typical road project from our observations; concrete, steel reinforcement, asphalt and quarry materials.”
The base point for the Guide is set at 100 in March 2021, with values above and below the 100 base level showing percentage growth or fall in pricing and is updated quarterly based on market soundings.
“The guide’s first edition details the price changes that projects will be experiencing across Australia, showing an increase for these select materials costs of 25% from the base, with an 8% rise in the March-June 2022 quarter.”
“In the previous quarter, we have seen significant price growth in concrete and steel costs, with steel, in particular, suffering from lengthy production delays. Asphalt and Quarry Materials have experienced cost increases in line with inflation expectations during the same period.”
“In addition to the above, the increasing cost of fuel is implicitly built in, as it contributes to all construction industry supply and placement activities, especially when the fuel excise is returned to normal levels!”
“This results in challenges for contractors as they plan and schedule works for projects that span multiple years from concept to delivery and also for projects in the delivery phase if the contract does not allow for price renegotiation of appropriate variations,” said Ryan.
A copy of the index can be downloaded HERE, and the next edition will be published at the end of the September 2022 quarter.
If you are feeling the pressure of costs, scheduling, planning and estimating, contact us for professional, expert advice to support your next tender or major project delivery.