Build Metric says more builders are seeking cost checks as fixed-price
A second wave of construction insolvencies is forming in 2026 as builders carry fixed-price contracts based on estimates that no longer match actual costs, according to Build Metric.
The South Melbourne estimating and quantity surveying firm points to several pressures at once. ABS labour force data released on 15 September 2026 showed Australia’s unemployment rate rose to 4.5% in July. At the same time, Master Builders Australia said construction remains short hundreds of thousands of workers, while input costs are rising because of Middle East supply chain disruption.
Master Builders Victoria found 63% of its members are locked into fixed-price contracts that stop them passing on higher fuel and material costs. That leaves builders exposed when prices move after they have signed a job.
Build Metric said it received more than 1,500 enquiries from builders and contractors in the six months to July 2026. Monthly enquiry volume climbed from 158 in February to 398 in June, which the firm says shows more builders are checking whether earlier pricing is still workable.
Build Metric enquiries rose from February to June
Owner Luke Rose said the pattern in that work is consistent: builders priced jobs months earlier using their own estimates and are now carrying figures that no longer reflect delivery costs.
“The gap between a builder-prepared estimate and a professionally prepared one is not usually in the headline figure,” Rose said.
He said the shortfalls often sit in escalation allowances, labour rates and current material pricing. In stable markets those errors may stay manageable. However, Rose warned that in a volatile market they can decide whether a builder finishes a project.
Build Metric employs 45 full-time staff and says it records a 98% accuracy rate across submitted estimates. The firm argues that estimating mistakes are a major upstream cause of insolvency pressure because they leave builders committed to contracts they cannot defend when costs rise.
Build Metric also cited figures showing construction sector insolvencies account for 27% of Australian business failures. The company did not give a contract value for the jobs behind the enquiries it received.
