Our posts about Construction Costs are very popular and provide useful information to guide you on the costs for your construction project in Ireland.
The latest publication from Bruce Shaw – Bruce Shaw Handbook 2012 – shows that tender prices bottomed out and prices rose by 2%. Bruce Shaw is one of Europe’s leading quantity surveying practices, they provide construction cost management, construction project management and consultancy services.
Prices are still at levels not seen since the late 1990’s but it seems that the race to the bottom has halted, says the publication.
Below cost tendering is not sustainable and many contractors and sub-contractors have realised that.
Bruce Shaw predicts that prices will remain very competitive but they will rise by a further 3% during 2012.
Average Irish Construction Prices 2012
The average construction costs table is generated using Bruce Shaw’s Cost Database and sets out typical building construction costs.
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Average Irish Construction Prices 2012. Source: Bruce Shaw
Labour Rates
Labour rates were reduced by 7.5% in February 2011 (after prolonged negotiations with the construction trade unions). Below is a graphic showing Irish construction labour rates since 2005.
It is interesting to note they remained unchanged between 2008 and 2011. We believe they will stay at this level for a good few years but the lack of skilled workmanship may change this at any moment.
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Basic Hourly Wages in Ireland. Source: Bruce Shaw
Construction Materials Prices
Bruce Shaw Handbook notes the prices of some materials are reducing also but by less than might be expected since local manufacturers are experiencing smaller production volumes and imported commodities such as steel and copper reflect global demand.
This, however, contradicts the latest price index published by the Central Statistics Office of Ireland in May 2012.
In May 2012 the CSO recorded that all building and construction materials prices increased by 3.0% in the year since May 2011.
The most notable yearly changes were increases in Stone (+11.3%), Sand and gravel (+9.8%) and Paints, oils and varnishes (+7.4%) while there were decreases in Other steel products excluding structural steel and reinforcing metal (-2.3%), Plaster (-1.9%) and all other metal fittings (-1.8%). All building and construction material prices increased by 0.2% in the month. Click here to read the full publication.
Guide to Rebuilding Costs in Ireland
The Society of Chartered Surveyors publishes every year a guide to rebuilding costs in Ireland. This guide is intended to assist in insuring a house and the costs included are based on building rates as of March 2012. Click here to read the full publication.
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Table of Rebuilding Costs March 2012. Source: Society of Chartered Surveyors.
Overall, it is still a good time to build, particularly if you can finance it yourself.
Check out our other articles in this series.
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