Concerns over builders ramping-up prices

Earthquake-hit Cantabrians may soon have building price lists available after concerns building companies are ramping-up fees.

Canterbury Registered Master Builders Association past-president Graeme Earl told NZPA there have been reports of tradesman hiking prices and charging earthquake premiums for jobs.

"The rates that people were pricing prior to the earthquake was in some cases below costs. Now, people were entitled to lift them, but some may be pushing the boundaries a little a bit," he said.

At Parliament today, Finance Minister Bill English, speaking for Earthquake Recovery Minister Gerry Brownlee, said he understood there had been discussions with the building companies.

"One proposition has been to publish a price list so that members of the public know what ought to be charged; prices could be set by the main suppliers."

Labour deputy leader Annette King asked whether building industry members could sign an agreement to charge usual prices and not impose a premium.

Mr English said it was a constructive suggestion, and there would be discussions on how to ensure cost control.

Mr Earl recommended people have prices checked by a qualified organisation, such as master builders to make sure they were not getting ripped-off, and should expect to pay between $38 and $48 an hour.

"If it's something that is reasonably tricky and something that is not safe, then I would have thought that...a premium on top of it is justifiable. But if you are just adding it on to everything just for the sake of it, then obviously there could be an issue there."

Mr Earl also said there could be material shortages as the market was at a low before the earthquake hit.

"For example, manufacturers have been producing plywood up to a certain level to cope with the market. All of a sudden they have quadrupled requirements for this sort of material.

"What it has meant is that in some cases they are actually drawing material destined for export to actually fill the local market down here," he said.

Mr English said once the claims process was settled, there could be discussion over prioritising some projects as there was not an unlimited supply of building materials.

"I imagine it will not be as easy as that, simply because there are so many distressed householders. Whether they have had a water tank burst or had their house crack in half, they regard their circumstances as important and as needing to be dealt with quickly," he said.

 

 

 

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