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How a builder works out the price
A builder usually prices a project one of two ways. A fixed-price contract sets one price for a defined scope, so the builder carries the risk of cost overruns. A cost-plus contract charges the real cost of labour and materials plus an agreed fee or margin, so you carry more of the risk but pay for what is built. Small jobs are often quoted as an hourly rate. The hourly rate has to cover more than wages. The Fair Work minimum for a Level 3 employee under the Building and Construction General On-site Award is $29.45 an hour from 1 July 2026, and the charge-out rate also pays for tools, insurance, licence, supervision and paperwork.
- Scope and plans: what is being built, to what standard, and who supplies what
- Approvals: council or certifier fees and any engineering or design work
- Labour: hourly or day rates for carpenters and trades, or a fixed price for the scope
- Materials: framing, cladding, roofing, windows and fittings, at allowances or at cost
- Builder's margin, site costs, insurance and any home warranty or compensation cover
- Contingency for unknowns, then GST on the total
Worked example: One day of cost-plus carpentry for two carpenters (illustrative, not a quote; the materials line is a made-up allowance)
- Carpenter one, 8 hours at $63 an hour
- $504
- Carpenter two, 8 hours at $63 an hour
- $504
- Materials at cost (illustrative allowance)
- $700
- Total
- $1,708 total (illustrative)
What it costs, by scenario
Low, typical and high prices. Built on 19 October 2026 from two Airtasker cost guides, one compiled national guide, the Fair Work award and state regulator pages. The extension, whole-house renovation and new-build figures rest mainly on the compiled guide, and we found no builder day rate. The sources do not state a GST basis.
Carpenter or builder labour, hourly (per hour)
One Airtasker page gives $45 to $80 an hour for carpenters, dated June 2024, and the typical figure is the rounded middle of that range. It is a carpentry rate, not a licensed builder's project rate, and rests on one source.
- Low
- $45
- Typical
- $63
- High
- $80
Single-storey extension, standard finish (per m²)
This rests on one compiled national guide. It puts flat, accessible blocks with a simple roofline at the lower end. We found no second source for extension rates, so use it only to sense-check quotes.
- Low
- $2,500
- Typical
- $3,500
- High
- $5,000
New home build, standard finish (per m²)
The national guide gives $1,600 to $4,500 with a typical $2,300. Airtasker gives $900 to $3,100 overall, and its city table shows medium-finish builds at $1,010 to $1,390 and luxury builds up to $3,100. We use the overlap, but the two sources differ a lot on the typical figure.
- Low
- $1,600
- Typical
- $2,300
- High
- $3,100
Whole-house renovation, per project (per project)
The national guide's range for a whole-home renovation, from a light refresh to major structural work. It rests on one source. The guide gives no per-square-metre renovation rate, so this is the best sense-check we found.
- Low
- $150,000
- Typical
- $300,000
- High
- $600,000
| Scenario | Low | Typical | High |
|---|---|---|---|
| Carpenter or builder labour, hourly (per hour)One Airtasker page gives $45 to $80 an hour for carpenters, dated June 2024, and the typical figure is the rounded middle of that range. It is a carpentry rate, not a licensed builder's project rate, and rests on one source. | $45 | $63 | $80 |
| Single-storey extension, standard finish (per m²)This rests on one compiled national guide. It puts flat, accessible blocks with a simple roofline at the lower end. We found no second source for extension rates, so use it only to sense-check quotes. | $2,500 | $3,500 | $5,000 |
| New home build, standard finish (per m²)The national guide gives $1,600 to $4,500 with a typical $2,300. Airtasker gives $900 to $3,100 overall, and its city table shows medium-finish builds at $1,010 to $1,390 and luxury builds up to $3,100. We use the overlap, but the two sources differ a lot on the typical figure. | $1,600 | $2,300 | $3,100 |
| Whole-house renovation, per project (per project)The national guide's range for a whole-home renovation, from a light refresh to major structural work. It rests on one source. The guide gives no per-square-metre renovation rate, so this is the best sense-check we found. | $150,000 | $300,000 | $600,000 |
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Find a providerWhat changes the price
- Scope and complexity. A simple box on a flat site costs less than a design with curved walls, steel beams or a complicated roof.
- Finish level. Airtasker's city table puts a luxury finish at roughly two to three times a basic one per square metre.
- Site and access. Sloping blocks, tight access, poor soil and long service connections all add labour, plant and engineering.
- Contract type. A fixed price puts overrun risk on the builder, so it usually carries a margin for that. Cost-plus passes more of the risk to you.
- Approvals and insurance. Council fees, certifier fees and home warranty or compensation cover are real costs, and some are added on top of the building price.
- Location. Sydney, Melbourne and Brisbane run higher per square metre than Adelaide and Perth in Airtasker's table. See the metro and regional note below.
What's usually included, and what isn't
Usually included
- Labour and supervision for the work described in the contract
- Materials listed in the contract, or allowances where the choice is yours
- Site set-up, a skip bin and removal of waste, if the contract says so
- Home warranty or compensation cover where your state requires it, shown as a separate line or in the price
- A defect period or warranty on workmanship, as set by your state's rules
Often extra
- Council, certifier and design fees unless the contract lists them
- Landscaping, fencing, driveways and outdoor structures
- Items you supply yourself, such as fixtures and appliances
- Variations you request once work has started
- Land, demolition of an existing house and utility connections, unless quoted
Metro and regional differences
Metro: In metropolitan areas, wages, site costs and travel time are higher, and demand is steady. Airtasker's city table puts basic builds at $1,180 to $1,210 per square metre in Sydney, Melbourne and Brisbane against $900 to $950 in Adelaide and Perth.
Regional: Our sources give no separate regional rates, so treat the ranges as a national guide. Outside the cities, a smaller local pool of builders and trades, travel time and materials delivered over long distances can push costs up, even where wages are lower.
Licensing and compliance
Builders must be licensed or registered in every state and territory we checked, but the dollar thresholds differ, and some of the pages we needed were closed to us.
Check the builder's licence on the regulator's register, and ask for proof of insurance before you pay a deposit.
New South Wales: Building Commission NSW says a written contract is needed above $5,000 including GST and home building compensation cover above $20,000.
The page does not state a dollar threshold for a licence, so check the home building licence register.
Victoria: the Building and Plumbing Commission.
Domestic building insurance applied to work worth more than $16,000 before 1 July 2026, and from that date a first-resort Home Warranty insurance scheme applies to work worth more than $20,000 on a home of three storeys or less.
Queensland: the QBCC says building work valued over $3,300 needs a QBCC licence, and home warranty insurance is compulsory for residential construction work valued at more than $3,300 including materials, labour and GST.
It pays up to $200,000.
Western Australia: Building and Energy requires registration for builders, with no dollar threshold on its page, and home indemnity insurance for residential building work valued over $20,000.
South Australia: Consumer and Business Services licenses builders, who need a licence for most domestic building work, and from 10 November 2025 domestic work under $20,000 is classed as minor and regulated less strictly.
We could not open a CBS page to confirm the indemnity insurance threshold.
Tasmania: the Residential Building (Home Warranty Insurance Amendments) Act 2023 starts on proclamation and sets no dollar trigger, and we could not confirm that the scheme is in force or the dollar threshold for a builder licence.
The ACT: the Construction Occupations Registrar licenses builders, and the planning site gives no dollar threshold.
It says carpenters and bricklayers do not currently need a licence, and residential building insurance cover rises from $85,000 to $200,000 from 1 January 2025.
The Northern Territory: the Building Practitioners Board registers builders, and the business.gov.au listing says registration is needed for construction work valued at $12,000 or above on class 1a, class 2 (one or two storeys) and class 10 buildings, which a June 2025 HIA guide repeats.
We could not confirm whether that figure has since changed, so check with the Board.
Before you accept a quote, check
- Is the price fixed, or cost-plus with an agreed margin?
- Does the contract set out plans, specifications and a completion date?
- Is home warranty or compensation cover in place before you pay a deposit, where your state requires it?
- How are variations priced and approved before the work is done?
- What is the payment schedule, and is each payment tied to a stage of work?
- Who pays for approvals, certifier fees and design work?
- Does the quote say whether GST is included?
Frequently asked questions
How much is a builder per hour?
One Airtasker page puts carpenters at $45 to $80 an hour. That is a carpentry rate from June 2024, so a builder who manages a whole project may charge differently. We found no builder day rate.
What is the difference between a fixed-price and a cost-plus contract?
A fixed-price contract sets one price for a defined scope. A cost-plus contract charges the real cost of labour and materials plus an agreed fee or margin. Ask which one you are signing and how variations are priced.
How much does an extension cost per square metre?
One national guide puts a single-storey extension at $2,500 to $5,000 per square metre, with about $3,500 as typical. We found no second source, so get several quotes for your own plans.
When do I need home warranty or compensation cover?
It depends on your state. Examples from the regulator pages are work over $20,000 in New South Wales, Western Australia and (from 1 July 2026) Victoria, and over $3,300 in Queensland. See the licensing section for each state.
Does a builder need a licence for small jobs?
In Queensland a licence is needed for building work valued over $3,300. In New South Wales a written contract is needed above $5,000. Plumbing, electrical and gas work need licences whatever the value. Check your state's regulator.
Should I take the cheapest quote?
Compare the same scope, inclusions and cover first. A much lower price can leave out approvals, insurance or finishes.
Sources and method
Built on 19 October 2026 from two Airtasker cost guides, one compiled national guide, the Fair Work award and state regulator pages. The extension, whole-house renovation and new-build figures rest mainly on the compiled guide, and we found no builder day rate. The sources do not state a GST basis. How we calculate our guides.
- Airtasker: house building cost guide (older marketplace guide) (marketplace, 5 June 2024)
- Airtasker: carpenter cost guide (older marketplace guide) (marketplace, 10 June 2024)
- What's the Damage: builder cost guide (compiled, sources not named) (survey, 19 October 2026)
- Fair Work Ombudsman: Building and Construction General On-site Award MA000020 (award, 1 July 2026)
- NSW Government: contracts for building or renovating a home (Building Commission NSW) (regulator, 29 April 2026)
- Consumer Victoria: domestic building insurance and insolvency (regulator, 6 February 2026)
- QBCC: who must hold a QBCC licence (regulator, 16 April 2026)
- QBCC: what is home warranty insurance (regulator, 11 May 2025)
- WA Government: information and obligations for registered building services providers (regulator, 26 May 2026)
- SA Law Handbook: licensing of builders (names Consumer and Business Services) (regulator, 12 March 2026)
- Tasmania legislation: Residential Building (Home Warranty Insurance Amendments) Act 2023 (regulator, 19 October 2026)
- ACT Planning: construction licences (regulator, 19 October 2026)
- ACT Planning: residential building work insurance (regulator, 19 October 2026)
- business.gov.au (ABLIS): NT building contractor residential (restricted) registration (regulator, 19 October 2026)
- HIA: guide to builder registration in the Northern Territory (survey, 20 June 2025)
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