Builders are absorbing the cost increases. How long can that last?

Construction costs are climbing again. But this time, clients aren't necessarily the ones paying for it.

Rider Levett Bucknall's latest Australian Construction Market Update found that the cost of key inputs including diesel, freight and concrete has risen again, while competitive tendering is preventing contractors from passing the full increase onto customers.

In many cases, builders and contractors are absorbing the difference.

Wholesale diesel is now close to $2.50 a litre, while concrete suppliers have reinstated surcharges of around $7 to $9 per cubic metre. RLB estimates recent increases have pushed costs on new projects around 2% to 4% higher.

For construction businesses already operating on tight margins, those numbers matter.

A job priced months ago doesn't suddenly become more valuable because fuel, freight or materials cost more today. And in a competitive market, simply increasing the quote isn't always an option.

So the margin gets squeezed instead.

In Brisbane, RLB says contractors are currently showing increased appetite for projects, particularly below $80 million, as businesses position themselves ahead of the expected Olympic construction pipeline. Brisbane's Tender Price Index is forecast to rise 5% across 2026, before accelerating to 7% in 2027.

That makes controlling the things you can control increasingly important.

You might not be able to control the price of diesel or what a supplier charges next month. But you can reduce uncertainty around how and when you get paid.

Clear milestones, agreed variations and knowing the funds for a project have been committed before the work is completed can make a significant difference when margins are already under pressure.

That's where Witzer comes in.

Witzer gives builders and tradies greater payment certainty by securing project funds upfront and releasing them as agreed milestones are completed.

Because when the cost of doing the job keeps moving, getting paid for it shouldn't be another variable.