Construction at the Dún na Rí housing development in Coosan has been temporarily halted due to the increasing cost and uncertainty relating to the supply of building materials
Ina statement issued to the Athlone Advertiser this week, Mr Ronan Barrett, Managing Director, Castlestar Developments, noted that the decision to temporarily halt construction of the 426 homes was primarily due to the current costs associated with the purchase of building materials.
“As a result of the unprecedented and extreme volatility in the price of building materials and the uncertainty of material supplies, arising from the current supply chain issues caused by the Russia/Ukraine crisis, we have concluded that we should defer the construction of phase one of Dún an Rí, Coosan until there is price stability on materials.
“Arising from this decision, construction activity at Coosan will now be deferred until building material prices have stabilised and until we have confirmation from suppliers that they can guarantee the supply of materials,” Mr Barrett commented.
Construction on the 15 hectare site commenced in 2021. The first strategic housing development in Athlone to receive An Bord Pleanala approval, when construction is complete, Dún na Rí will comprise 237 houses, 189 apartments, outdoor play areas, creche, parkland and a 430 metre section of new distributor road linking Coosan and Cornamaddy.
The managing director confirmed to the Athlone Advertiser that the project is fully funded by Castlestar Developments and by Bank of Ireland.
“However, despite the availability of equity funding for the project and despite the availability of the Government’s Help To Buy supports for homes at Coosan we have no choice but to defer construction until we have confirmation that there is continuity of material supplies and price stability on materials.
“This extreme market volatility has had a very negative impact on the cost of a wide range of building materials to include major cost increases in the price of insulation, cement, concrete, steel, plasterboard, timber and energy and fuel costs.
“Unfortunately all of the market indicators in the first four months of 2022 point to further significant inflationary pressures and further supply chain and material price increases in 2022 – these increases appear to be originating from the new challenges created by the Russian invasion of Ukraine and the negative impact that the war is having on the supply for raw materials.
“If this crisis is resolved in the near term, then the current situation could correct itself very quickly, but at the moment it is impossible for us to call the timelines,” Mr Barrett remarked.
Mr Barrett confirmed to the Athlone Advertiser that construction would recommence once the cost and supply of building materials stabilised.
“As soon as we have confirmation that there is continuity of supply of materials and confirmation that material prices have stabilised, then we will recommence construction activity on site at Coosan, keeping prospective purchasers firmly in mind.
“Once we recommence work on site, we will be in a position to make rapid progress as after nine months work the infrastructure works on site, we are already well advanced on the project and therefore when we recommence work we expect that new homes will be available for handover to purchasers within five to six months of the recommencement date.
“We have taken what we hope is a prudent decision, to defer construction activity on all of our construction projects (not just Athlone ) until there is certainty of supply and stability,” Mr Barrett concluded.
