2018 CCF Victorian Infrastructure Outlook Report 1 | Page 30

Victorian Construction Cost
Trends
Growth in construction costs tends to be highly
correlated with construction activity because high levels
of demand in construction activity not only places
pressure on the existing supply of inputs, boosting input
prices, but also allows construction companies to seek
higher margins. The price of key inputs such as steel,
oil and other base materials are determined globally
and may occur independent of domestic constructio