Tuesday, August 27 12:51:35
New figures from the Society of Chartered Surveyors Ireland (SCSI) show that building costs increased slightly in the first half of 2013.
This continues a trend of moderate price increases dating from the start of 2011 when prices first began to level off.
The Society of Chartered Surveyors Ireland Tender Price Index, which has been running since 1998 and is the only independent assessment of construction tender prices in Ireland, shows that construction tender prices increased by 0.9pc since the end of last year and were up 2.7pc for the full year from the first half of 2012.
Paul Dunne, Chair of the Quantity Surveying Professional Group of the Society of Chartered Surveyors Ireland said the slow upward movement in prices in the first half of the year is due to increases in building materials and input costs internationally.
"The moderate rise also reflects an increasing awareness of the unsustainability of below cost tendering, which is a practice whereby contractors submit bids at unsustainable levels to secure the work and has unfortunately resulted in the failure of so many contractors, sub-contractors and suppliers working on public and private projects".
The SCSI Index reports that since construction tender prices bottomed out at the end of 2010 and beginning of 2011, construction prices have risen by between 2.5 and 3pc per year and this trend looks as though it is set to continue.