Tender prices for the construction industry have falled back to 1999 levels, according to new figures from the Society of Chartered Surveyors.
The data shows that the dramatic falls in construction tender prices recorded in the second half of last year, have not only continued into 2009 but have accelerated.
According to the latest Tender Price Index survey, tender prices fell by 10.5 per cent during the first six months of the year and have decreased by 17.3 per cent over the past 12 months.
Tender prices have fallen by 23 per cent since reaching their peak in the first half of 2007. The decline has been caused by a decline in all sectors of the construction industry.
President fo the Society of Chartered Surveyors Ken Cribbin said contractors and sub-contractors are bidding well below cost and under pricing risk in order to secure work in an ever diminishing market.
"This is not sustainable for any period of time and in the absence of any pick up in activity, this will unfortunately lead to firms going out of business’ he said.
“Given that the estimated job losses in construction are likely to be just short of 200,000 by the year end, it is essential that the Government prioritize projects that generate more jobs and get such projects to construction as quickly as possible. Investment in public infrastructure also generates a return and improves the competitiveness of the economy while at the same time laying the foundations for the next economic upturn,” added Mr Cribbin.
