You’re listening to ‘Buildipedia’, the go-to podcast that helps Australians build the home of their dreams. By covering the entire journey, from buying your home through to design, building, selling and everything in between, we will help you fill in the blanks and bring your property visions to life! In this episode, we are discussing the effects of price escalation in building costs due to an inflationary environment and what this means for our listeners looking to build in a post-COVID market with widespread material and labour shortages. Listen in to learn more about lump sum vs cost plus contracts, price variations in the build phase and many more important points to consider prior to embarking on your construction journey in this unprecedented time period. KEY EPISODE TAKEAWAYS 1. A fixed price contract (or a lump sum contract) is a fixed scope of work for a fixed fee with margins undisclosed to the client. A cost plus contract (or an open book contract) includes building costs plus a nominated margin that is disclosed to the client. In the current environment, banks will only consider funding lump sum contracts. 2. If building works were to deviate from the contract, we adhere to a strict criteria in our practice to ensure that price variations are charged fairly to maintain integrity and trust with our clients. 3. A quantity surveyor is an important source of impartial advice on your proposed building design, which can help accurately price your project and prevent unnecessary price blowouts prior to commencing construction. CONNECT WITH US ON SOCIAL MEDIA! WEBSITE: https://www.ballastpoint.com.au/ LINKEDIN: https://www.linkedin.com/company/ballast-point-pl/mycompany/ FACEBOOK: https://www.facebook.com/ballastpointprojects INSTAGRAM: https://www.instagram.com/ballastpointprojects/ CREDITS INTRO: Rita Mastrantone INTRO & OUTRO MUSIC: Coby Wilk If you LOVED the episode, please make sure you share this on your Instagram stories and tag us @ballaspointprojects. Thanks for listening & talk soon! Mat & Jeannie