Overview

The construction industry operates on notoriously thin margins across the world. In Australia, the reliance on imported materials means currency risk is baked into almost every major project. A 5% move in AUD/USD between tender and procurement can turn a viable build into a loss-maker.

Whether you’re a Tier 1 contractor sourcing structural steel from Asia, a developer managing a multi-year project with an international supply chain, or a specialist subcontractor importing equipment from Europe, currency fluctuations can reshape your project economics overnight.

Smart Currency Business works with Australian construction firms to build treasury strategies that provide budget certainty at every stage of the build.

Key challenges

Material price volatility: The cost of imported materials like steel, aggregates and fittings can shift between the tender stage and procurement, eroding forecast margins before a single unit is installed.

Long-term project horizons: Construction projects often span years. Without a strategy to hedge against long-term AUD movements, your initial budget becomes a moving target that’s impossible to manage.

Overseas subcontractors and consultants: Managing payroll and payments for international specialist consultants and labour requires rate certainty when quoting to head contractors.

Equipment procurement: Large capital expenditure on machinery from overseas markets requires precise timing. A sudden dip in AUD when your payment is due can add hundreds of thousands to the cost of a single piece of equipment.

How we help

Smart Currency Business works with your team to identify exposures at the tender stage, then hedge to lock in material costs before you commit to a price. This means the margin you tender is the margin you keep.

For multi-year projects, we design layered hedging solutions that provide budget certainty across the full project timeline, with flexibility to adjust as procurement schedules shift.