Recent article published in the ‘Irish Construction Industry Magazine’ has indicated that building costs have stabilised and increased slightly in the second half of 2011 for the first time since 2007. According to the Society of Chartered Surveyors Ireland (SCSI), construction prices are now back to 1998 levels and new figures indicate that these rates have now bottomed out. This is further emphasised by a 2% increase in prices in the latter part of 2011. Referring to the trend of contractors pricing work below cost to secure work, SCSI also said ‘the levelling off and slight increase in tender prices is also due to a growing realisation that pricing work at below cost and not pricing risk in tenders is unsustainable’.
