I think this is the crux of the problem here. I am pricing up a build at the moment and for the life of me I cannot get to the figures a contractor quoted me for, even for materials.
I can only assume they don't shop around, they have a cut on it, they are adding a healthy margin in their own role and in the labour required. If you trim the fat I honestly don't see how it still can't be done for far less around 1500 per sqm. I might be deluded though!
A simple rudimentary example of this is I once had a company come in to quote to redo all our bathrooms, the quotes came in around 8-10k a bathroom. I then got a smaller tradee in but well known to bring in all materials and build a design you wanted. it was down to around 5-6k a bathroom. I then went even further to source all the materials myself, find a separate tiler and plumber and managed to get it all done for around 2.5-3k a month.