✅ Updated January 2026

Pricing building work is more complex than a straight hourly rate — most builders work on project prices, day rates or a hybrid. This guide covers what the market pays, and how to build a price that actually covers your costs and pays you properly.

📋 In This Article

  1. →Current rates by trade and state
  2. →Day rates vs hourly
  3. →Project pricing
  4. →Calculating your floor rate

Builder and Carpenter Rates Australia 2026

TradeHourly RateDay RateNotes
Licensed Builder (Residential)$85 – $130/hr$680 – $1,040/dayHigher end for project management role
Carpenter (Qualified)$70 – $110/hr$560 – $880/dayFit-out and finish work at the higher end
Formwork / Framing Carpenter$75 – $115/hr$600 – $920/dayStructural/commercial rates higher
Cabinetmaker$75 – $120/hr$600 – $960/dayCustom joinery commands premium
Decking / Landscaping Carpenter$65 – $100/hr$520 – $800/dayOutdoor work, often competitive market
State variation: WA and NSW consistently pay 10–20% above national average. Regional and rural rates vary significantly — some regional areas pay above metro due to travel and demand.

Day Rates vs Hourly

Most builders prefer to quote a day rate or project price rather than hourly. Here's why:

  • Hourly billing: Works for small jobs, repairs and maintenance. Clients can track hours. Downside: clients watch the clock and you get penalised for being efficient.
  • Day rate: Better for ongoing work relationships (building firms, project managers). Clear, predictable for both sides. Common for subbies working for head contractors.
  • Project price (fixed price): Standard for residential construction. Requires a detailed scope and clear inclusions/exclusions. Risk of underpricing — allow a 10–15% contingency.
  • Cost plus: You charge actual costs plus a percentage margin (typically 15–25%). Works well when scope is uncertain. Requires trust and detailed invoicing.

Pricing Building Projects

For fixed-price residential work, a square metre rate gives a rough starting point:

  • New residential construction: $1,800–$3,500+/m² (builder's margin included; varies enormously by spec)
  • Renovation/extension: $2,200–$4,500+/m² (higher due to complexity)
  • Decks: $400–$800/m² (materials + labour)
  • Pergolas/carports: $2,000–$6,000+ (fixed structure)

Always price from a detailed take-off, not from m² rules of thumb. Take-offs take time but prevent losing money on materials.

Calculating Your Floor Rate

Whether you quote hourly or by the job, you need to know the minimum you can accept:

  1. Target net income: $95,000
  2. Gross for tax: $95,000 ÷ 0.70 = $135,700
  3. Add super: $135,700 × 1.115 = $151,305
  4. Annual overhead: Ute ($10k), insurance ($5k), tools ($4k), licence ($600), software ($1.5k) = $21,100
  5. Revenue needed: $172,405
  6. Working days: ~215/year (allowing for leave, sick days, wet weather, quoting time)
  7. Minimum day rate: $172,405 ÷ 215 = ~$802/day

Use our free rate calculator to run your numbers.

⚠️ General Information Only: Rates are indicative only and vary substantially. These are not financial or pricing advice.