What we are doing to combat the state of the construction industry landscape
Alongside a house price boom, Australia is in the midst of a homebuilding boom with the Housing Industry of Australia expecting that a near-record number of new homes will be built over the next 12 months.
But for many in the residential construction sector, it’s a profitless boom – and several major players have recently gone bust, with the assumption that more will follow.
Why are construction companies folding?
A perfect storm of factors has been brewing for the better part of 2021, and now the rainy season has arrived.
Supply chain issues, with a shortage of building materials worldwide resulting from COVID-19 disruptions, coupled with natural disasters from freak storms and flooding to bushfires, have provided significant pressure on builders.
Those shortages have led to prices rising exponentially, particularly for timber and steel.
On top of that, a labour shortage is making it difficult to find tradespeople, giving workers the power to command huge wages.
So, the overall cost of construction has been pushed up significantly.

A number of major builders have gone bust in recent months despite a home construction boom. Picture: Getty Images
Adding to this is the lengthy delays in actually getting the materials, which has led to some homes taking more than 12 months to be built, further adding to building companies’ costs.
With the majority of builders signing fixed-price contracts with buyers, and the margin for escalating costs being inadequate, many are losing money on every single project.
It’s a big problem in exceptional circumstances like we’re seeing at the moment, said Russ Stephens, co-founder of the Association of Professional Builders.
“The average cost of a contract for a builder has gone up between 15% to 20% over the past six or seven months alone – and up to as much as 50% in some areas,” Mr Stephens said.

Australia is in the midst of a residential construction boom, with a near-record number of new homes to be built in the next year. Picture: Getty Images
What we are doing to combat the state of the construction industry landscape
32 Degrees Building has been operating for over 11+ years, and we know and understand how to manage our business in turbulent times.
We have been working with our team and talking directly to our suppliers to manage and understand any upcoming supply challenges and supply chain issues. We have been working with our timber suppliers closely to understand their difficulties in obtaining overseas supply and then managing, monitoring and forecasting for our current and future builds. Skills shortage for us isn’t an issue, we have worked very hard to set our business apart from the rest. Our team are employed with us and this enables us to closely manage and develop their practical skills with us over the course of their apprenticeship and retain them into tradespeople and leadership roles – we now employ over 40 team members and continue to grow. By employing our team members, we manage our labour costs. This strategic approach we have applied to our business has allowed us to manage our costs and your build providing you with the security and confidence that we are here to stay.
Our business is always looking forward and planning for the future. We forecast 6 months, 12 months, and 18 months ahead to ensure we can stay one step ahead of any market issues and trends.
With the above in mind, we have a strong business model and capable management team in place to ensure that the best outcomes for our clients and the business are always achieved.
What you can do to prepare your home for a severe weather event?
Australia has recently experienced some severe weather conditions including high winds and heavy rainfall. These weather events and other similar events that have occurred in recent years, can at times be so severe that they exceed the Building Code of Australia (BCA) design benchmarks for homes constructed within Australia.
In such extreme weather conditions rainwater can be forced through closed windows and sprayed up rooves in a manner which homes aren’t designed for and therefore water may enter some homes. The resulting water ingress may cause damage to your home, often this damage may only be of a minor nature, but can still cause considerable stress to you as the homeowner.
What can you do to prepare your home for a severe weather event?
As part of your ongoing home maintenance we recommend the following check measures are undertaken to avoid any water ingress to your home;
- Check all gutters and downpipes are clear of debris, leaves etc…
- Regularly check your roof for signs of slipped roof tiles, cracks and possible water ingress entry points – especially if you have recently had a contractor attend your property eg. Foxtel or solar panel installer
- Check your stormwater drains for blockages
- Check your window and door seals aren’t displaying signs of cracks and ageing
- Check for other possible entry points and seal if required
If during a severe weather event you do get water ingress – who do you call?
- If it is an emergency please call the SES for immediate assistance
- In most other cases, do what you can to stop/reduce the incoming water and then contact your home insurer as the first step to understanding what you can do
When these severe weather events happen most owners contact the builder of the home to request an inspection or even rectification of the damaged parts however if this issue hasn’t occurred until now then it is likely it is due to the severe weather event and these items will be claimable under your owner’s home insurance or alternatively are maintenance issues as the homeowner for you to attend to.
Should I Stay or Should I Go? Hot tips to help you survive your renovation
Tips for homeowners living through a renovation, extension or addition
How to Decide Whether to Move Out or Live Through a First Floor Addition, Ground Floor Extension or Renovation?
Whether you are building a First Floor Addition, Ground Floor Extension or Renovation, the one question that our clients always ask us is can they stay in the home and live through construction or should they consider temporarily moving out? This is a big decision to make — with a lot of factors to consider other than your budget when entering into significant construction works to your home.
We have outlined below some of the factors to take into account when looking to stay or move.
Factor # 1 – Scope of works
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Building smart energy efficient and sustainable additions
The demand for green housing is getting bigger by the minute. The HIA GreenSmart program offers up-to-date information on practical, affordable and durable environmental solutions for residential design and construction.

Today there is more demand for builders to create sustainable homes using environmentally responsible housing design ideas, building techniques and products.
A GreenSmart house will:
✔ Improve the water and energy efficiency of the home and reduce energy bills and costs
✔ Create healthier homes for occupants
✔ Provide options to make the home more adaptable for all stages of life
✔ Reduce waste from the building process
✔ Improve site management during construction
Our Builder Alistair has completed the GreenSmart Professional training and is Accredited as a GreenSmart Professional.
Some things that we have been integrating into our first floor additions, ground floor extensions and renovations are:
✔ Improved thermal performance
✔ Passive solar design and natural ventilation
✔ Design and operational issues for water and energy efficiency
✔ Selection of water and energy-efficient appliances
✔ Lighting
✔ Sustainable building products
✔ Design
When planning your build consider asking your builder or planning team these questions:
Have you thought about the orientation of your addition?
What windows and type of glass to use in your build?
What energy efficiency and sustainable products can you use?
When you meet with our builder and work with our drafting team for your project, we will take these important things into consideration for the design and build of your addition or extension.
Contact us today to discuss how we can integrate environmentally sustainable building solutions into your build.
What comes first? Plans or Quote?
We often get asked: “What should I do first? Should I get a quote for my home extension/addition or should I get plans drawn up?”
These are our top 5 tips on why you should get a quote from a builder BEFORE getting plans for your project when building an addition or extension.
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- Obtaining a detailed written quote or proposal for your addition or extension comes with many benefits. In your quote the builder should provide you with an indication of the size of the build (how much room is going to be added to your home), the number of rooms being added and what materials and inclusions are being used so you know what is included and if you can afford what you are planning to build.
- A builder can arrange to assist you in drafting plans inhouse or have relationships with draftspeople or architects that specialise in the type of build you are after. This can make the whole process smoother and faster saving you time and money.
- When you work with your builder they can review your plans with you and the draftsperson to ensure you are staying on track with costs and may pick up on items that may be of concern from a construction viewpoint. This input is important in ensuring that you achieve what you set out for in your build while staying within your budget and avoiding issues that could arise during the build if not picked up during this critical planning stage.
- A builder can help and advise you on the true costs for different material options before you commit to plans and approvals. This can in turn ensure that you get the right materials, resulting in the right look for your build at the right cost.
- A builder can consult and guide you with on how to achieve what you want while managing what you can afford. This is best done prior to plans being drawn up due to the builders expertise in the type of build you are looking at. This can reduce the amount of plan revisions and save you time and money in the short term and long term.
If you are thinking of planning or building an addition or extension contact us on (02) 4647 2324 or fill out the form below to get things started.
Trainee’s Efforts Rewarded With Full-Time Role
It is always great to see a trainee excel and be rewarded with a full-time role once they complete their qualification.
That’s been the case for Kelsey Ray, who has just completed her Certificate III in Business Administration with us here at 32 Degrees Building.
Kelsey is “delighted” to be staying on with the business, which specialised in custom built new homes, first floor additions and ground floor extensions. She will continue in an administration type role, utilising the skills she has developed in customer service, processing payroll and navigating MYOB.
“Kelsey has been a positive addition to our team,” said Victoria Size, Operations Manager at 32 Degrees Building.
“She is assertive in her ability to step in and assist in other areas where she can and is always willing to learn more. Kelsey now has a great understanding of accounts payable and payroll and is continuing her learning path with sales, client support, HR and accounts receivable, which will ensure that she is a great asset to any company she works for.”
The skills and knowledge Kelsey has learnt in her traineeship have been invaluable to her in regards to working in an office environment.
“Being able to develop the skills I need to start my career in business administration in a practical, real world application,” Kelsey said of what she’s enjoyed the most about her traineeship.
A key element to any young employee getting the most out of their traineeship is the support they have around them. Kelsey described the support she received the last year as “excellent”.
“Everyone at 32 Degrees Building have been so willing to share their knowledge and experience with me, and it was comforting to know that My Gateway was always there if I needed help with anything.”
Prior to beginning her traineeship at 32 Degrees Building, Kelsey worked in the veterinary industry and had limited administration experience. This didn’t pose an issue during her traineeship though, with Kelsey displaying an eagerness to learn and to help her colleagues when necessary.
“From the start Kelsey was all about the “why” – she had to understand why she was doing what she was doing and as soon as she understood this, she was able to effectively undertake her new role,” Victoria said.
Kelsey’s development throughout her traineeship has provided her with some great lessons and advice to help anyone looking to do a traineeship.
“Ask for help when you need it,” Kelsey said. “You’re there to learn and no one expects you to know how to do everything straight off the bat, so ask questions when you need to so you can get the support you need.”
“If you’re willing to put the effort in, you won’t regret it. The opportunity to learn on the job is truly invaluable and My Gateway will be there to help every step of the way.”
We are stoked to have Kelsey employed with us full-time as a valuable member of our team and thank My Gateway for their support throughout the process.
Start your career with us
Leading Hands, Carpenters, Carpentry Apprentices and Administrative Staff Required
Due to recent growth, we are looking for leading hands, carpenters, carpentry apprentices and administrative staff that live in the surrounding suburbs along the M4 & M5 corridors to join our team.
To apply, please call 02 4647 2324 and send your resume to admin@32degreesbuilding.com.au
Must have a drivers licence and a ute, an immediate start is available for the right applicant. Attractive packages available to the right candidates and based upon skill level. Apprentices are paid as per the Award.
What do we offer in return?
A challenging, rewarding and safe working environment where you can develop your skills and gain a variety of experience across the residential construction industry. We will help you to cement your future in your chosen trade and offer exciting career opportunities for you.
This Is Why People Love Custom First Floor Additions
First floor additions, also known as second storey extensions are increasingly popular for those homeowners who don’t want to lose valuable garden space but want to increase their family living space. Best of all, going up is easy and our team will do their best to ensure the process is smooth and the build is completed on time and with minimal disruption to your daily lives.
You can have a modern, liveable home with plenty of space for your family – without giving up the location you love.
Our team are the experts in planning and building custom/tailor-designed First Floor Additions
We are often approached by clients who would like to create an open plan living environment downstairs, whilst adding more room for the family to live comfortably upstairs. The best way to achieve this is with a Custom First Floor Addition.
As specialists in these types of builds, we have many years of experience enabling us to easily offer solutions and suggestions on products, layout and how to get the most from your investment. We are able to share with you relevant quality projects that have resulted in many of our clients becoming raving fans.
No Plans? No Worries!
If a client comes to us without plans, part of our service is to organise for a building designer to assist with the plans and design process. This is will be included in our Preliminary Agreement if required.
We can arrange for our draftspeople to consult with our clients at their home and discuss their project requirements. From there we will then provide plans based upon their specifications and work hand in hand with our clients and the draftsperson to ensure the plans continue to work within the tailored build cost estimate that we have provided.
Improve your lifestyle and bring your family together
When building their addition our clients often decide to open up downstairs living spaces, renovate their kitchen and bathrooms and create new living spaces internally and externally. Once the addition and renovation are completed they are left with a finished product that is like moving into a brand new home.
We are able to create open plan living spaces and improve their current living situation. Our mission is to bring families closer together.
Take away the stress, let us help you plan, manage and design your build
We have a streamlined process which is stress-free and fun. When you are building with 32 Degrees Building you don’t have to worry about anything other than choosing what you want to add to your home and we will work with you on the design to suit your home and your lifestyle.
Contact us to start your building journey today
Not ready to book? Check out our process and how we do things here.
What type of loans can you use to fund your addition or extension?
If you are building an addition or extension on your home you may find yourself needing to arrange finance to pay for the build. We can help you secure the appropriate finance for your build.
Refinance your current mortgage
To pay for your addition or extension you can opt to refinance your existing mortgage. This means that you will use the equity in your home to obtain a loan for a higher amount than what you currently owe to finance your addition or extension project.
The new loan will replace your old loan and you can choose to stay with your existing finance provider or move to a new finance provider. Refinancing has several advantages for homeowners with substantial equity in their homes.
First, it may allow you to obtain lower interest rates without changing your monthly mortgage payment or adding on a new payment.
Second, some lenders “may approve a loan based on the estimated value of your home once the addition is completed,” which is convenient for projects that require a large amount of money, such as a second story addition or ground floor extension.
Take out a Construction Loan
A construction home loan is a type of home loan designed for people who are building a new home, a first floor addition, ground floor extension or doing large scale renovations. It has a different loan structure to home loans designed for people buying an established or existing home.
A construction loan most commonly has a progressive drawdown. That is, you receive instalments of the loan amount at various stages of construction, rather than receiving it all at once at the start. You generally only pay interest on the amount that is drawn down, as opposed to on the whole loan amount.
A number of lenders offer construction loans that are interest-only during the construction period and then revert to a standard principal and interest loan.
Of course, a construction loan is just one potential source of funding for your project. The Federal Government recently unveiled its HomeBuilder scheme, which will give eligible homebuyers and existing owners grants of $25,000 to help them construct or substantially renovate their home. Strict eligibility criteria apply– for example, you’ll need to meet an income test, and be building a new home that’s worth less than $750,000 or a renovation that will cost at least $150,000. For more information visit our blog post here.
We can connect you with our finance specialist to discuss how to get started today.