THE CHIEF executive of a large construction firm yesterday warned that below-cost tendering for projects by some construction companies was not sustainable.

Brian McCarthy of Brian McCarthy Contractors Ltd made his comment yesterday as accounts filed at the Companies Office confirmed his firm more than doubled its pre-tax profits last year. The Co Clare-based company increased its pre-tax profits by 111 per cent from €1.8 million in 2006 to €3.8 million last year.

Revenues at the business were up 20 per cent from €59 million to €71 million. The firm, with offices in Cork and Ennis, has accumulated profits of €10.5 million.

Employing 800 directly and indirectly, the company has been trading for more than 25 years and is involved in commercial, industrial, institutional, retail, tourism, apartment and student residence projects throughout the State.

Mr McCarthy said the company was reasonably happy with its 2007 performance, in what he called "a very competitive market . . . We're happy with the work we did last year and the efficient way in which we carried out our work." He said he does not expect the same level of turnover this year or in 2009.

"The environment is extremely competitive and there are a number of companies tendering below cost, and that will lead to tears as it is not sustainable. Clients should be aware of that when they opt for the below-cost price and not the market price for projects."

The company operates across a number of sectors in the construction industry and expects to be better insulated from the downturn than companies operating exclusively in the residential sector.

Some of its recent projects include the construction and refurbishment of developments at Community Hospital, An Daingean, Kerry; Dunnes Stores, Roscrea; Revenue Office fitout at Fairgreen, Galway; Milford Care Centre, Castletroy, Limerick; AE refurbishment, Portiuncula Hospital and the Masterlink Logistics distribution centre, Mallow.