👉 Ever wondered why a simple building project seems to swallow your entire budget.
👉It’s not just about material prices or tradies charging more. —and the problem runs deeper than you think.
Just picture it:
Setting up your dream clinic—or expanding an existing one—should be an exciting milestone. But for many, the journey quickly turns into a slow, frustrating and surprisingly expensive process.
You’d think a modest commercial fit-out wouldn’t cost more than a small house. Yet, somehow, it does. Why? Here’s what’s going wrong—and more importantly, how to fix it.
What’s really driving Construction Costs?
Over the last few decades, productivity in Australia’s construction sector has barely moved. In fact, we now build 50% fewer dwellings per worker than we did in the 1970s.
WHY? ……….. TWO BIG REASONS:
- Planning and regulatory complexity has exploded. A development application that was 12 pages long in 1967 can now stretch into hundreds of pages, with environmental, heritage, and traffic assessments—even for modest urban projects.
- The industry is dominated by small firms that can’t scale or innovate. A staggering 91% of construction companies have fewer than 5 employees, which leads to fragmentation, delays, rework, and inconsistent outcomes. Labor productivity in the construction sector has declined, with workers averaging only 2.8 productive days per week, down from six days pre-pandemic. This drop in efficiency has contributed to project delays and cost overruns.
WHY DENTAL CLINICS ARE ESPECIALLY EXPOSED …….
Dental projects fall into an awkward gap: they’re too complex for a shopfitter, but too small to attract the full attention of large builders. This often leads dentists to settle for under-equipped teams or default to one-stop builders—only to find the final design falls short of their original intent.
5 smart ways to reduce build costs
Here’s how experienced architects and strategic planning can shift the odds in your favour:
1. Choose an architect who knows the dental game
Designing a clinic isn’t like fitting out a café or retail space. An experienced architect will:
- Provide workflow solutions that will maximise your ROI
- Streamline council approvals by anticipating red flags.
- Optimise the layout to avoid overbuild.
💡 Tip: Ask your architect to walk you through the patient journey in the concept stage—if they can’t link spatial decisions to patient experience and practitioner efficiency, keep looking.
2. Avoid the trap of small and inexperienced builders
Using the lowest price tradies might seem cost-effective—but it often results in delays, variations, and blame games. Instead:
- Use the architect to vet builder tenders properly.
- Document the scope tightly to reduce grey areas.
- Work with integrated design teams when possible.
💡 Tip: Request that all tenders include nominated subcontractor details—and ask your architect to review their commercial healthcare experience before signing.
3. Leverage local planning knowledge to fast-track approvals
Some councils are tougher than others. An architect who’s done multiple local clinics builds knows:
- Which town planners to engage early.
- When to seek exemptions or alternative solutions.
- How to write a planning justification that actually gets read.
💡 Tip: If your architect has strong council connections, ask them to book a pre-lodgement meeting with a planner before you finalise the design.
4. Lock in materials early through your architect or builder’s procurement networks
With material costs rising 10–15% and no signs of full stability, engaging an experienced architect early allows you to:
- Specify cost-effective alternatives
- Pre-order high-risk materials like steel or joinery items through trusted suppliers.
- Leverage builder relationships to secure bulk pricing or warehouse space for early delivery.
💡 Tip: Some builders can hold key materials at current prices if your design scope is locked in early saving thousands as prices climb.
5. Protect your project with financial due diligence
With over 2,800 construction company collapses in 2023–24, fixed-price contracts—once seen as “safe”—now carry serious risk for clients. Builders locked into pre-inflation rates are increasingly walking away from projects or cutting corners to survive. Engage your architect to:
- Vet builders’ financial health and track record.
- Use staged contracts that allow for design input, transparent pricing, and risk-managed execution.
- Allocate escalation clauses for long-lead items (like joinery or steel) where appropriate.
💡 Tip: Ask your architect to request a copy of the builder’s insurance certificate and recent ASIC company extract.
Smart solutions matters more than ever
Australia is facing a skilled labour shortage in construction. Materials are expensive. Approvals are slow. The system isn’t built to support fast, affordable healthcare builds.
But the right people on your team can help you beat the system.
A dentist working with a specialist architect isn’t just getting “design”. They’re getting:
- A navigator through red tape.
- A cost controller.
- A problem-solver who finds shortcuts others don’t even know exist.
So… are you paying for the build—or the mistakes?
What part of your dental clinic build are you most worried about—cost, time, or council approvals?
👉 Download our FREE Cost Calculator Guide.
👇 Let’s talk. I’d love to hear what you’re facing.
Committee for Economic Development of Australia (CEDA). (2025). Size Matters: Why Construction Productivity is So Weak. CEDA.
National Housing Finance and Investment Corporation (NHFIC). (2023). Building the Future: Supply Chain Constraints and Construction Costs. NHFIC.
Australian Securities and Investments Commission (ASIC). (2024). Corporate Insolvency Statistics 2023–24.
D’Amico, L., Glaeser, E., Gyourko, J., Kerr, W., & Ponzetto, G. (2023). Why Has Construction Productivity Stagnated? The Role of Land-Use Regulation. SSRN.
