Welcome to the Building Industry Bulletin

The quarterly building industry bulletin aims to provide updates on the latest trends within the Queensland building industry as relevant to the activities of the Department of Public Works.
NIEIR Queensland regional construction activity update

According to the latest report from the National Institute of Economic and Industry Research (NIEIR), the immediate short term outlook is one of stability in Queensland construction activity, due to strong gains in Queensland engineering construction. NIEIR estimates that total Queensland construction activity reached an all-time peak at $5.8B in March quarter 2005, representing a 4.0% increase from the previous peak in December quarter 2004. Although NIEIR have forecast construction activity to decrease marginally from the peak reached in March quarter 2005 as the dwelling cycle downturn gains momentum, this downturn is expected to be largely offset by growth in non-residential building and engineering. Total construction activity in Queensland during 2005/2006 is still expected to increase by 1.8% from the previous year to $22.8B.
[ View the full report ]
DPW Contractor Survey

As there had been little shift in the reported difficulties employing sub-contractors in the Department of Public Works' quarterly survey of building contractors between June quarter 2004 and March quarter 2005, it was decided that the next survey would be undertaken in September quarter 2005. In the research completed for the Department during June 2005 the National Institute of Economic and Industry Research (NIEIR) did, however, identify that there was a shortage of labour across all trades generally. Consistent with the DPW March quarter Contractor Survey, NIEIR's research highlighted particular difficulties employing sub-contractors in the wall and floor tiling, bricklaying, plastering, painting, formwork, concreting and electrical trades.
PQC Tender Activity

Although the total value of projects that went to tender in June quarter 2005 was still almost 70% more than December quarter 2004, the pressure to attract tenderers appeared to ease somewhat with the Department receiving an average of 3.1 tenders per project, an increase of 9% from December quarter 2004 when the average was 2.81 per project. This represented an increase of 8% from March quarter 2005 when the average was 2.84 per project.
[ View the table ] Tender Price Forecast

The Department of Public Works has forecast a 1-2% increase in building costs per quarter in the period to June 2007.
[ View the table ]

Building Materials Cost Comparison

The cost of some Queensland building materials monitored by the Department have increased for the first time since December quarter 2004. Between March quarter and June quarter 2005 there were increases in the cost of 25mpa concrete (5.76%), aluminium windows - commerical fixed (4.83%) and float glass tinted - 4mm thick (2.47%). According to Reed Construction Data the largest increases in material costs during the last 12 months have been in face bricks (Settler Range) (17.53%), 25mpa concrete (5.76%) and 200mm standard concrete block (5.19%).
[ View the full table ]