Construction prices fall by third from peak
CONSTRUCTION tender prices have fallen by almost a third since the peak of the property bubble in early 2007.
Prices have fallen back to a figure not seen since 1998 with fees dropping 11pc over the last 12 months alone, according to the Society of Chartered Surveyors (SCS).
It is the sixth decline in a row over the last three years, although the latest survey reveals the rate is slowing.
Micheal O'Connor, chairman of SCS's quantity surveyors division, said prices may finally be levelling off.
"The severe shortage of new projects has meant that contractors and sub-contractors continue to tender at well below cost and to under price in order to secure work," Mr O'Connor said. The SCS accused the Government of underspending, with work not proceeding to construction stage, which it claimed was further damaging the sector.