Registered Master Builders released a survey yesterday that found 95% of respondents nationally reported delays, increased costs, customer complaints and product substitutions due to a lack of building materials.
Growing difficulties in getting staff and the rising impact on mental health was also taking a toll on the industry.
BuildSmart co-owner Glen Williamson said it was an "incredibly frustrating" time for builders.
Delays in getting products were making it incredibly difficult to manage workflows, the Dunedin builder said.
"We had an email from a supplier which outlined the increase in costs, which was pretty big.
"We can’t be responsible for those increases in material costs and take them on so ultimately we are having to pass them on to the homeowners now," Mr Williamson said.
The New Zealand Herald reported national retail chain PlaceMakers has warned customers of price rises across many different product categories, some going up 15%.
Mr Williamson said lockdowns in several Australian states was also affecting getting steel into the country.
Previously, builders would be able to get product and start on jobs straight away but now they were having to measure jobs, order the right amount of product and wait up to six weeks for it to arrive, Mr Williamson said.
"It is definitely harder to manage our workflow at the moment, you have to be that many steps ahead so it is very challenging," he said.
Despite the frustrations, there was still plenty demand for builders which meant there was plenty of work around, he said.
NJL Builders Ltd owner Nigel Lawson said it was having to wait at least six to eight weeks for products to arrive.
"Definitely 4x2 frames and plywood, just about everything across the board, is becoming harder and harder to get," he said.
As well as the impact of Covid-19 on shipping, New Zealand timber being exported overseas and building booms in Auckland and Christchurch were taking a lot of product out of the system, Mr Lawson said.
"The biggest challenge is that we are having to pre-plan, we can’t just buy products and start straight away, we are having to plan everything so far out," he said.
Most builders had about a year’s worth of work ahead of them, Mr Lawson said.
Getting skilled and trained staff was also a problem.
"The Government threw money at an apprenticeship scheme but they aren’t what we need right now, we need skilled and trained staff to do the job.
"Builders are too busy to train people at the moment," he said. — Additional reporting RNZ & The New Zealand Herald