The Australian Institute of Quantity Surveyors (AIQS), the peak body and trusted voice of quantity surveying professionals in Australia, urges stakeholders in the construction industry and general public to employ the services of Certified Quantity Surveyors (CQS), to calculate construction, facilities management and depreciation costs during this uncertain time. The current situation is volatile, uncertain, changing day by day, and it is having an increasing impact on the construction industry and construction costs. Certified Quantity Surveyors are experts on construction costs and are well placed to offer detailed advice to their clients on how best to navigate this period of impacted fuel supply.
AIQS CEO Dr James Cameron stated, “Project managers are concerned about projects that are currently in design phase and heading toward impending tender, and not knowing to what extent their costs should be escalated given the daily impacts compounding now.” “Materials that are sourced from, or heavily reliant on, Middle Eastern oil supply chains, including diesel, bitumen, petrochemicals and plastics are already experiencing upward price pressure, with ultimate increases of 30–50 per cent entirely possible under prolonged conflict conditions. This situation is having a disproportionate impact on diesel fuel, which is predominantly used by the construction industry. Each construction project is unique and has its own tailored reliance on petrochemical products and will be affected accordingly. This increases the need for informed practical advice from a CQS.” “Secondary impacts arise from longer lead times, higher shipping costs and disruptions to global logistics networks. These effects are expected to be less pronounced than direct material price impacts but may still be significant for projects with complex or highly internationalised supply chains.” Dr Cameron added, “As cost pressures rise and uncertainty persists, a growing number of projects may become marginal or unviable. Pipeline impacts are unlikely to be visible immediately, with projects already under construction or recently tendered largely insulated. However, from mid-2026 we could see an increasing incidence of project deferrals or cancellations.”
“Some construction firms are considering standing down staff who are in training such as apprentices and trainees to save costs whilst they absorb price increases. This will be a longer-term disadvantage to an industry which relies on people being trained to fill the positions needed in construction to keep pace with demand.” “Certified Quantity Surveyors are reviewing their rates of escalation to conservatively consider the impacts of the current Middle East situation and rising product costs and levies being incurred for tenders that are occurring or soon about to occur.” “Certified Quantity Surveyors are playing a critical role in helping firms through this situation. The level of professionalism that comes from using a Certified Quantity Surveyor cannot be understated. Our members are listed on our website, and we strongly encourage stakeholders to engage a Certified Quantity Surveyor for advice during this difficult time”, Dr Cameron commented.
