R2

I estimate the new Building Act will have added 25% (From July 04)to residential building costs. The official stats are historic, so don't really reflect 'todays' costs.

The increase is made up in several ways.
Architects/Designers are taking twice as long to produce the plans as Councils reqiure extra details, right down to bathroom waterprooofing details. I'm surpised your guy can start as early as next year. The problem being, we don't know what they will ask for next, as it depends on who in the council checks the plans. And thats for a simple brick and tiled house.

This is continued out on the building site. It's taking builders and subcontractors longer to get Code Compliance. I know of one tiler who submitted a producer statements 4 times before the council would accept it, but only after my help. I can quarantee he will be charging more from now on to cover compliance costs, either that or go broke.

Actual example. House company gave an estimate 5 weeks ago to a developer of approx $163,000 to build one of their standard house plans (143m sq), but thought they could probably trim that price. The actual quote came in this week at $189,900. Reality bites!

Thats over a 16% increase. I think they have realised that that not only are the plans costing more, but so to are Building Consents fees, labour costs, materials etc etc. Manufactures having to upgrade their technical informnation, which often involves expensive retesting and product recertification. I can't see it settling down for a few years yet. The next price spike will be caused building industry licensing, starting 2007.