TenderPriceIndex: Construction prices have stabilised and may already be on the rise according the latest figures from the Society of Chartered Surveyors. The Society's annual Tender Price Index indicates prices had bottomed out during 2003.
The Society provides the only independent assessment of construction tender prices in Ireland. Its 2003 report shows an initial fall in the first six months of that year, on average 0.6 per cent lower than the second half of 2002.
The index peaked in the second half of 2001, then began to fall by as much as five per cent during 2002 until prices righted themselves and began to rebound through the second half of 2003, the report indicates.
This stabilisation of prices looks set to continue through 2004 and construction tender prices may experience a modest increase this year, according to the compiler of the report, the quantity surveying division of the Society.
"The recovery in the second half of 2003 mirrors a general increase in the level of confidence within the industry," according to Mr Derry Scully of the quantity surveying division working party.
"With the increase in confidence continuing it is likely that construction prices will show further modest increases, mirroring general inflation levels for the immediate future," he added.
Average tender prices were back to where they were at the end of 2002. "Pricing levels are therefore beginning to reflect increases in the input costs of labour and materials once again," Mr Scully said.
The index is based on actual tender returns for new, non-residential build projects with values ranging from €500,000 up to €10 million. It covers all regions of Ireland and therefore provides a measure of average construction tender price increases across different project types and locations.
