ABS data explains why tradie quotes vary so widely

By AI, Created 6:01 AM UTC, May 27, 2026, /AGP/ – New Australian Bureau of Statistics figures show rising construction costs, wages and subcontracting income are helping drive big differences in tradie quotes across Australia. Service.com.au says the cheapest quote is not always the best warning sign as households compare prices during a period of higher borrowing costs.

Why it matters: - Australians are facing wider gaps in tradie pricing as construction costs rise and the RBA cash rate returns to 4.35%. - Higher household pressure is making quote comparisons more common, especially when similar jobs produce very different prices. - The spread can reflect real business differences, not just overcharging or underquoting.

What happened: - Service.com.au CEO Dan Kerr said several legitimate factors can push quotes apart by thousands of dollars for what appears to be the same job. - The Australian Bureau of Statistics’ Australian Industry release for 2023-24 showed the Construction industry grew across all key data items. - The ABS data showed purchases of goods and materials rose 5.1%, or $12.3 billion. - The ABS data also showed Construction services industry value added rose 7.0%, or $6.7 billion. - Employment in Construction rose 4.8%, or 59,000 people, in 2023-24. - Wages in the industry grew 9.1%, or $7.8 billion.

The details: - Larger businesses tend to quote more because they carry office space, admin staff and marketing costs. - ABS figures showed wages rose 7.7% for businesses with 20-199 employees, compared with 0.5% for businesses with 5-19 employees. - Material quality can change the final price because quotes may use standard products or premium materials with longer life or better performance. - Kerr said a detailed quote should specify exactly what materials are included. - Specialisation and experience also affect pricing, with more experienced tradies charging a premium for better problem-solving and efficiency. - Subcontracting can lift prices because businesses that use subcontractors need to add margin on top of those costs. - The ABS data showed building installation services generated $42.9 billion from subcontracting income in 2023-24. - Businesses that complete more work in-house can often offer more competitive rates. - Kerr said sole traders and small businesses with low overheads can sometimes deliver the best value. - Kerr advised consumers to compare material quality, timeframes and extra-work terms before judging a quote. - Kerr said the best tradies provide detailed quotes that break out materials, labour and possible extra charges. - The ABS data showed total income from construction services has increased 88.4%, or $88.2 billion, since 2011-12.

Between the lines: - The cheapest quote is not automatically a red flag if a small operator has low overheads and strong workmanship. - The most expensive quote is not automatically overpriced if it reflects higher labour costs, premium materials or more administration. - Rising costs across the sector suggest quote volatility is likely to remain while demand for skilled labour stays high.

What’s next: - Consumers are likely to keep seeing wide price spreads and should ask for clearer breakdowns before choosing a tradie. - Kerr said buyers should ask what corners are being cut if a quote looks too good to be true. - Continued cost-of-living pressure and higher borrowing costs may keep pressure on labour and material prices through 2026. - More detailed quoting may become a competitive advantage for tradies trying to win trust.