What we have seen to date is probably not too surprising. Last year of 2023, we priced over 850 projects around NZD, right from Southland to Northland.
Now if you’re a full contract builder charging to the client, these are the ‘AVERAGES’ of what we are seeing in a busy industry.
Big Centers:
Auckland, Christchurch, Wellington, Queenstown [Busy Boom City]
Average rates you will get charged are $75 – $90 +GST, depending on the scope of the project.
For example, high-end architectural or heavy commercial projects may also incur a Project Management charge of anywhere from 15-25 hours a week at $100 – $110 an hour. Completely reasonable, as these big jobs require a lot of forward planning, consistent site checking, and sign-offs at each stage of the project.
Profit margins/markup on items you would tend to see 15% – 22% as a margin. Most of the time, these builders prefer to work on fixed-price contracts.
Mid-Size Regions:
Taranaki, Hamilton, Dunedin, Otago, Tauranga, Mount Maunganui, Nelson
You can expect to see a smaller charge-out rate here, typically ranging from $65 – $75.00 + GST per hour. You can also negotiate an apprentice and/or a hammerhand/laborer at a cheaper rate, $38 – $45.00 +GST.
These smaller towns definitely see a fair share of more projects, less competition, and rates a little bit less.
Profit margins/eg margin on materials/PM Fees probably seeing 12% – 18% pretty standard. If you get a contractor on charge-up, you could negotiate $65.00 +GST an hour, weekly pay, 15% overall margin, and a $35.00 vehicle charge a day.
Smaller Regions:
West Coast, Wairarapa, Masterton, Hawkes Bay [Exception after floods]
These areas tend to see some smaller rates. I would exclude Hawkes Bay now for the next wee while. Supply and demand play a big factor in these regions; less work, rates go down.
We don’t get a tonne of pricing around these smaller regions, but we get the odd project here and there. Expect to be charged around that $55 – $65.00 an hour mark, probably more on a charge-up basis, and potentially easier to get a builder, I would say. Probably a 15% margin over materials and a vehicle charge of $35.00 a day, I would say.
Overall Rates Topic:
From what we have seen in regards to rates, and it’s the most talked-about topic, it’s so hard to predict and get absolutely bang on. If you get a good builder, they are submitting a fixed price; they are an expert in their trade, and they know what they are doing.
They’re not disclosing their rates, margins, overall P&Gs; they are just simply submitting a fixed price contract.
So, if they are good and efficient, they could be making up to $150.00 an hour; you just won’t know it because you signed a fixed price. If you get them on charge-up, believe me, they are making a lot less money, and you’re getting a good deal.
Email us at david@rapidqs.com if you’re getting different rates!
