As a former lecturer in Construction Economics and Quantity Surveying in GMIT I have expressed the view that rising costs in materials and labour will impact on what can be delivered under the National Development Plan.
“Rising prices in construction will eat into budgets and all estimates will have to be revised upwards, resulting in less work being delivered. Tender prices have increased by over 36% since 2015 according to the Society of Chartered Surveyors (SCSI) Tender Price Index published in October 2021. The index shows a 6% increase in tender prices in the first half of 2021”.
The signs are that further price inflation has occurred in the second half of 2021. The construction industry is also facing increases in material prices in January 2022 ranging from 11% to 22%.
“The increase in material prices is worrying as material accounts for up to 50% of overall delivery costs in some instances. Materials such as timber, steelwork, insulation, glazing, piping/ducting are all vital components in the delivery of construction projects”.
“It is also having on effect in delivering houses at a price which could be affordable, and I am hoping Government will take all of the above into consideration when designing an affordable house scheme. It is my view that construction costs will continue to rise in 2022 and the shortage of labour will also bring additional upward pressure on prices”.