Construction costs up

BUILDING costs are rising at five times the rate of inflation and a ‘serious shortage’ of workers is to blame, according to new research.

Construction companies need carpenters, electricians and labourers, a report by consultants Mitchell McDermott on office building construction has found. The shortage of foremen is so bad that productivity on projects goes down as workers don’t know what to do. The shortages are leading to tender prices – the sum developers offer to complete projects for – rising by up to 7% this year.

Mitchell McDermott director Paul Mitchell said that while builders are returning to Ireland, the sector is still ‘desperately short’ of staff.