The Construction Industry in Ireland is in a crisis due to the massive increases
in costs and the fact that the Government are refusing to act on the Public
Works Contracts which are fixed in price.
Contractors are losing millions in the rising costs, they cannot recover these
losses as their Public Works Contracts are fixed price and no increases can be
“Contractors entered these contracts in good faith and would have priced
normal inflation in their tenders.
Due to the unprecedented level of increases in the cost of materials, contractors
cannot sustain such a level of loss. In fact, it may be considered reckless
The fear is that Contractors will walk away from Public Works Contracts and
they are reluctant to price for works because of the uncertainty in material
“The net effect is that contractors will go out of the business, workers will lose
their jobs and the delivery of housing and other vital infrastructure will stop or
be seriously delayed”.
Civil Engineering contractors are beginning to turn their back on Ireland and
are concentrating their focus on work in the UK where fairer Public Works
Contracts are in use.
“The Government need to act swiftly in this emergency and immediately
introduce a contract clause to allow contractors recover the increases which
are unprecedented and unsustainable.
There is no point in having contracts which are unworkable, and which will
drive the industry into a deep recession.
Action by Government need to be immediate as the evidence is clear that the
Public Works Contracts are not fit for purpose”.