The Real Costs Behind Trade Pricing (And Why It’s Justified)

The Real Costs Behind Trade Pricing — Especially in FNQ Since 2020

If you've recently received a quote from a builder, plumber, electrician, or other trade professional in FNQ, you may have noticed a trend: rates now sit between $110 and $150 per hour.

To many clients, this might feel like a steep increase — especially compared to pre-2020 pricing. But there’s far more going on behind the scenes than just time on the tools.

The reality is: trade businesses aren’t just charging for labour. They’re covering a growing list of costs, risks, and responsibilities required to do the job legally, safely, and well.

💬 Hourly Rate ≠ Profit

An hourly rate of $130 doesn’t go straight into the tradie’s pocket.

Here’s how it typically breaks down:

• After accounting for insurances, travel, tools, staff, fuel, and admin…

• Most operators earn $30–$45/hr in actual take-home income

The rest is absorbed by the real-world costs of running a trade business — which have increased significantly since 2020.

🏗️ What a Builder Must Account For When Quoting a Job

For builders especially, quoting a job isn’t just about estimating time and materials. A comprehensive quote needs to cover:

✅ Planning & Compliance

• Reviewing plans and site conditions

• Ensuring works meet the National Construction Code (NCC)

• Factoring in energy efficiency, fire, drainage, and accessibility compliance

• Lodging documentation, permits, and insurances

  
  

🧰 Labour & Scheduling

• Calculating required labour (builder, carpenters, apprentices, site support)

• Factoring in public holidays, weather delays, subcontractor availability

• On-site supervision and direction of works

🔁 Liaison With Trades

• Organising and coordinating licensed subcontractors:

  • Plumbers

  • Electricians

  • Tilers

  • Painters

  • Roofers

  • Cabinetmakers

• Scheduling them in correct sequence to avoid downtime or clashes

• Managing communication, scope, timing, and access

Builders are the central coordinator between the client, the certifier, the suppliers, and every subcontractor involved.

📞 Client Communication & Problem-Solving

• Managing variations, client preferences, and unexpected changes

• Providing progress updates, site visits, and answering client questions

• Adjusting scope or product selections based on availability or cost

📦 Materials & Sourcing

• Ordering and managing deliveries for structural and finishing products

• Tracking price increases (many materials fluctuate monthly)

• Dealing with freight delays, substitutions, or shortages

💡 Why Hourly Rates Vary Between Trade Businesses

Not all trades are structured the same, and their pricing reflects that.

For example:

• A sole trader may charge $110/hr with lower overheads

• A licensed company with staff, vehicles, and insurance may charge $145/hr

Each business must factor in:

• Vehicle maintenance and fuel

• Equipment purchase and replacement

• QBCC licensing

• Public liability and workers compensation insurance

• Admin support and quoting time

• Superannuation, leave, payroll tax (where applicable)

Even when a job only takes an hour or two on-site, the business still absorbs full-time operational costs.

⏱️ Why Most Trades Apply a 2-Hour Minimum Charge

Whether the job is 15 minutes or 90, most professional trades apply a 2-hour minimum charge, and here’s why:

1. Travel & Setup Time

In FNQ, getting to the job or between jobs, may mean 30–60 minutes of travel each way. Tools need to be packed, safety gear prepared, and often setup done before work begins.

2. Background Admin

• Invoicing

• Site notes

• Compliance paperwork

• Insurance coverageAll of this still applies to a short job.

3. Holding Time in the Schedule

Even a quick task reserves a time slot. That blocks out capacity to take on longer or more profitable jobs that day.

The 2-hour minimum protects the business's ability to operate fairly and sustainably.

📈 Why Trade Prices Have Risen Since 2020

Trade businesses haven’t raised prices arbitrarily — the industry has been hit with multiple cost increases:

• Material price spikes — timber, concrete, steel, copper and fittings are all up 30–100% since 2020

• Fuel costs — affecting every supply run, dump trip, or rural call-out

• Insurance premium rises — particularly post-cyclone and flood events in FNQ

• Regulatory updates — the NCC 2022 has increased the cost of compliance (insulation, ventilation, fall protection, etc.)

• Labour shortages — causing subcontractor rates to rise significantly

Today’s quote needs to account for tomorrow’s price rises — or builders risk absorbing losses halfway through a job.

🧠 Bottom Line: You’re Paying for Quality, Safety & Accountability

When you pay a licensed trade professional — whether it's a builder, plumber, or electrician — you’re not just paying for time spent swinging a hammer.

You’re paying for: ✅ Legal compliance ✅ Quality tools and workmanship ✅ Project coordination ✅ Safety systems ✅ A job done once — and done properly

🛑 Cheap Quotes Often Mean Cut Corners

If you receive a quote that seems much lower than others:

• Is the work fully insured?

• Is the business licensed?

• Is the quote complete — or will there be variations?

• Will the work meet QBCC and NCC standards?

A professional tradesperson or builder may not be the cheapest — but they will save you from costly rework, insurance issues, or non-compliance later.

Need help understanding a trade quote or planning a project? Ask questions, seek transparency, and remember: quality work costs money — poor work costs more.