Building work costs start to bottom out
The cost of building work may be close to bottoming out. The latest construction tender prices index from the Society of Chartered Surveyors shows a fall of only 2.1pc during the second half of 2010.
While the index has fallen 33pc since its 2007 peak, over the whole of 2010 it was down only 5.8pc.
Consequently tender prices are now very close to where they were when the index was first published, 13 years ago.
Micheál O'Connor, chairperson of the quantity surveying division of the SCS said it was clear tender prices were now close to the floor and due to the severe shortage of work within all sectors of the Irish market, pricing would remain very competitive for the foreseeable future.
Mr O'Connor said the incoming government needs to focus on the three main blockages in public sector construction delivery, namely: accelerating delivery of public works; tackling departmental under-spend; and reforming planning for key infrastructure projects.