The latest Tender Price Index published by the Society of Chartered Surveyors Ireland (SCSI), shows that construction tender prices increased by 2.6% in the first half of 2015.
According to the SCSI Index, which is the only independent assessment of construction tender prices in Ireland and has been running since 1998, tender prices are up 5.5% year on year.
Micheál Mahon, Chairman of the Quantity Surveying Professional Group of the SCSI said “Construction Tender Prices have continued to increase during 2015 and this trend is likely to continue as activity in the industry picks up and major projects such as the National Children’s Hospital and multiple new commercial projects come on-stream.”
“While the increase in construction tender prices is most apparent in the Greater Dublin area it is now starting to spread out across the country. Factors contributing to the increases include a shortage of certain specialist sub-contractors especially glazing and curtain walling, an increase in mechanical and electrical prices and the relative weakness of the Euro versus Sterling which is giving rise to increased costs of some imported materials.”
Mahon said that it was important that companies taking on building projects of any significant duration to make the appropriate provisions for future tender inflation and that their Chartered Quantity Surveyor would be best placed to ensure the appropriate cost control plans are put in place.