Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Eamonn Farrell/Photocall Ireland
Construction

Building costs up 3 per cent as material and energy prices rise

The Society of Chartered Surveyors Ireland said that recent trends in below cost tendering are unsustainable as companies continue to fail.

NEW FIGURES HAVE shown that building costs continued to recover slowly last year, seeing an increase of almost 3 per cent.

The figures from the Society of Chartered Surveyors Ireland (SCSI) show that construction tender prices increased by 1.8 per cent in the second half of 2012 and 2.8 per cent for the year as a whole.

Andrew Nugent, Chair of the Quantity Surveying Professional Group of SCSI said that prices have increased by almost 5 per cent over past two years and which is “primarily due to rising input costs such as building materials and energy costs”.

“The gradual increase in tender prices also reflects a growing reality in the industry that recent trends in below cost tendering are unsustainable, as witnessed by the number of company and project failure amongst contractors and sub-contractors”, he said.

Nugent also said the construction sector has an important role to play in supporting the smart economy as well as foreign direct investment as the industry evolves and the  focus moves away from building houses and apartments.

Read: Planning applications down 17 per cent as construction remains in doldrums>
Read: Fewer than 8,500 houses built in Ireland last year>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
12
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.