Rising construction costs in both materials and labour will impact on what can be delivered under the National Development Plan.
This is the view of Independent Galway East TD, Sean Canney, who noted that tender prices have increased by more than 36 per cent since 2015 according to the Society of Chartered Surveyors Tender Price Index. The index also showed a six per cent increase in tender prices in the first half of 2021.
Dep Canney, who was a former lecturer in Construction Economics and Quantity Surveying in GMIT, said the construction industry is facing increases in material prices in January 2022 ranging from 11 to 22 per cent.
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The Tuam based TD said the likelihood of such increases was “worrying” as timber, steelwork, insulation, glazing, piping, and ducting are “all vital components” in the delivery of construction projects, and can account for c50 per cent of overall delivery costs.
Dep Canney [pictured above] said the increases are also having an effect on delivering houses at a price which could be affordable. “It is my view that construction costs will continue to rise in 2022,” he said, “and the shortage of labour will also bring additional upward pressure on prices.”
