02 September 2014
CONSTRUCTION TENDER PRICES CONTINUE TO RISE STEADILY
SCSI Tender Price Index records annual increase of 4.4%
Tender prices up 10% since bottoming out in 2010
The latest Construction Tender Price Index published by the Society of Chartered Surveyors Ireland (SCSI) shows that construction tender prices are continuing their steady increase from moderate rises in 2013.
The SCSI Construction 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 grew by 2% since the beginning of 2014. The annual increase since the first half of 2013 is 4.4%.
Micheal Mahon, Vice Chairman of the Quantity Surveying Professional Group of the SCSI said “Construction Tender Prices have continued their moderate pace of increases in 2014 and are now 10% higher since they bottomed out in 2010.
“This trend is likely to continue, and indeed it is accelerating slowly, as more confidence comes back into the market, bringing with it a modest increase in construction activity, particularly in the Greater Dublin area”.
Mahon said that there are a number of very large projects such as Intel and the Corrib gas pipeline nearing completion and these will release large numbers of workers back into the market, particularly in the specialist mechanical and electrical trades, which will maintain intense competition in the industry.
“It is worth noting that despite these recent modest increases building prices remain very competitive and, at 26% below their peak in 2007, they are still well below prices back in 2000”, concluded Mahon.
The Index is the only independent assessment of construction tender prices in Ireland. It is compiled by the Quantity Surveying members of the Society based on actual tender returns for non-residential projects during the period in question. It is based on predominately new build projects with values in excess of € 0.5m and covers all regions of Ireland. The Index is therefore a measure of average price increases across differing project types and locations. It should be regarded as a guide only when looking at any specific project, as the pricing of individual projects will vary depending on such factors as their complexity, location, timescale, etc.
For further information visit www.scsi.ie