Викторианцам, планирующим ремонт, рекомендовано иметь резервный фонд в 100 тысяч долларов из-за роста цен и неопределенности

Victorians planning a home renovation are being warned they should have a five-figure emergency fund on top of the planned cost amid distressing new industry insights. Construction hire firm Kennards Hire have this week released their annual Construction Confidence Check report, which found 60 per cent of the industry are now concerned about insolvencies or employment instability in the coming 12 months. While the majority of Victorian respondents to their insights research were still confident the sector would grow in the coming five years, close to a third are seeing interest rates and finance as well as labour shortages as a pressure point. RELATED: Cheap Vic home spots to turn doom into boom AFL great Gary Ablett Jr lists custom Surf Coast home Major Census blunder blows up 1 million Aussie homes State government guidance recommends keeping a 10-20 per cent contingency for unforeseen costs, including design changes or inflation. For Victorians planning a $100,000 renovation that works out to another $20,000 in reserve as rising costs squeeze builders and household budgets — equivalent to more than 33 weeks, or almost eight months, of Melbourne’s $600 median advertised rent. JV Built director Jake Vella said work had become quieter as homeowners held onto money amid uncertainty about the property market. Mr Vella, whose business specialises in home renovations, said even builders with plenty of work could find themselves making little or no profit — in many instances despite having built in margins to accommodate material and trade cost fluctuations. But he warned that while builders would be trying to anticipate cost changes, it was also possible that issues beyond the scope of the original works could emerge. “If you’ve got a $100,000 renovation, it starts at $100,000, but throughout the build things outside the scope of works may pop up.” Mr Vella said builders needed sufficient margins to absorb labour and material costs, which could change after a customer had already signed a contract. “The homeowner doesn’t turn around and say, ‘Yeah, no worries. Here’s more money for what’s happening’,” he said. “A lot of builders are holding off on doing long contracts at the moment just because materials keep jumping in price.” Mr Vella said builders were allowing greater contingencies in quotes to account for material increases and unexpected variations emerging during construction. “You always have to allow for materials and budgets to possibly go up, or variations that could pop up,” he said. Finding experienced workers was another challenge, with Mr Vella saying good all-round carpenters were particularly difficult to secure for renovation projects. For homeowners choosing a builder, he recommended inspecting previous projects, checking testimonials and speaking with former clients about their experience. “See previous projects they’ve worked on and do your homework,” Mr Vella said. Future Property Group managing director David Cummins said the level of concern about insolvencies and business instability did not surprise him. Mr Cummins said price escalation, tighter timelines, government regulation and planning delays had increased pressure across construction since the Covid-19 pandemic. “The margins are always going to be challenged because, generally speaking, the construction sector has to do a lot of work in little time.” Mr Cummins said responsibility should not fall solely on builders, with developers, financiers and other decision-makers also influencing project costs and timelines. “The decision-makers are the ones applying the pressure on the builders, and the builders are faltering under this pressure,” he said. He said better planning before construction could help reduce risks, costs and delays once builders reached the site. “We cannot keep on trying to solve tomorrow’s problems with yesterday’s thinking,” Mr Cummins said. He also warned against tackling Australia’s housing shortage by pursuing cheaper construction at the expense of long-term quality. “You can still build fast. You can still build innovatively. You can still build smart,” he said. “But building cheap today is going to create problems tomorrow.”   Cost pressures are already reaching customers, with 48 per cent of Australian respondents reporting project approval delays caused by tighter budgets. Another 44 per cent reported increased project delays due to costs, while 46 per cent faced greater pressure to increase project pricing. Victorian house construction prices rose 3.7 per cent in the year to June, according to the Australian Bureau of Statistics. Nationally, electric cable and conduit prices surged 11.2 per cent in three months as higher copper and PVC costs hit construction supplies. Construction also remains Australia’s biggest source of corporate insolvency appointments, adding weight to concerns about the financial health of building businesses. The industry accounted for 24.4 per cent of external administration appointments during the first 11 months of the 2025-26 financial year, according to Australian Securities and Investments Commission data. Kennards Hire general manager of sales Tom Kimber said construction businesses remained optimistic about future work while becoming more disciplined around investment and risk. “Businesses are continuing to invest in the future, with leaders in the industry still planning for growth,” Mr Kimber said. “The construction industry has always demonstrated an ability to adapt.” For families building or renovating, those pressures can ultimately determine what they pay, how long work takes and whether their builder finishes profitably. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. 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