COVID-19 has had a significant effect on the outlook for the Irish construction industry which has been experiencing reduced productivity, increased lead times and considerable disruptions to the supply chain.
Calculating the construction costs for your project is not an easy task. Every year since 2009 we publish some guidelines and average prices to help you getting an approximate figure.
You can check our other articles in this series here.
Construction costs have continued to rise in 2020, but at a dramatically slower pace than in recent years. This is fuelled by the introduction of near zero energy buildings (NZEB) regulations, shortage of skilled trades, supply chain pressures, and additional costs associated with increased welfare/cleaning regimes on-site.
Linesight’s reported that while COVID-19 has resulted in additional costs, it should be noted that the fall in construction output has potentially created
a more competitive tendering environment, putting downward pressure on contractor margins.
Linesight’s research indicates that the uplift in tender costs associated with COVID-19 has been more than offset by an increasingly competitive
tendering approach by contractors. This is due to concern around the impact of the current economic uncertainty on the quantum of work available for
tendering in the short to medium term, as reflected in the drop in construction output.
Linesight’s projection is that tender inflation for 2020 is likely to fall in the range of 3% to 3.5% (accounting for the impact of COVID).
The Society of Chartered Surveyors Ireland Tender Price index reveals that national construction tender prices increased by just 0.9% in the first half of 2020. The results indicate a continued slowing of Tender price growth in the construction sector.
Average Irish Construction Prices 2020
The table below shows the average construction costs as generated by Linesight’s Cost Database and sets out typical building construction costs:
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Average Irish Construction Costs 2020. Source: Linesight
Buildcost‘s construction cost guide also provides an overview of construction costs in Ireland in the second half of 2020:
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Construction cost guide 2020. Source: Buildcost
Buildcost‘s construction costs exclude FF&E, siteworks, VAT, professional fees, future inflation and other developer costs etc.
Labour Rates and Construction Materials Prices
The hourly rate pay has seen a 3% increase from last year.
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Hourly rate pay for workers in the construction sector. Source: Registered Agreement for the Construction Industry/Sectoral Employment Order 2020
The latest monthly data from CSO recorded that building and construction materials prices showed an increase of 0.4% in October 2020 since last year.
The most notable yearly changes were increases in cement (+5.1%), concrete products (+4.7%), Paints, oils and varnishes (+2.5%); while there were decreases in Bituminous emulsions (-10.3%), Glass (-5.2%), and Sand and gravel (-2.8%).
Guide to Rebuilding Costs in Ireland
The Society of Chartered Surveyors Ireland (SCSI) provides a House Rebuilding Cost Calculator here. This calculator can be used as a guide to give you a minimum base cost for your construction project.
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Table of Rebuilding Costs September 2019. Source: Society of Chartered Surveyors.
Typical Exclusions
There are a number of other expenses that you should also consider when estimating your project. See some of the exclusions that may apply to your project here.
Architect’s fees will vary based on a number of factors ranging from size and complexity to level of the service required. These two articles provide some guidelines:
Additionally, you may also need to allow for:
- Design Certifier Fees
- Assigned Certifier fees
