Supply chain issues slowing down major council projects
The contractor withdrew from the Saggart Community Centre project setting it back six months. The image is an artist impression of the project

Supply chain issues slowing down major council projects

INFLATION and supply chain issues are slowing down and impacting major housing projects in South Dublin County.

Rising costs of construction materials have affected public sector projects across the country.

Contractors have been finding it increasingly difficult to stand over tender prices, and it has led in some cases, to contractors pulling out of works, due to issues regarding costs.

Late last year, a contractor withdrew from the tender for renovation works at Saggart Community Centre – setting the project back six months.

Other public projects like Kilmainham Mill in Dublin City Council, have seen similar issues, with rising costs a contributing factor.

According to the Central Statistics Office, the average price for rough timber was up 43 per cent in 2021 compared to 2020, while other timber types increased by 20 per cent.

Steel products increased by 17 per cent and plaster is up 13.9 per cent.

In January, Cairn Homes, one of the country’s largest builders, said that inflation in materials was adding €15,000 to the cost of an average home.

Speaking at the council monthly meeting on Monday, South Dublin County Council chief executive Daniel McLoughlin, acknowledged the impact this is having on projects in the capital programme (2021-2023).

“Unfortunately, the trend is upwards and there are other contracts in our capital programme, including some housing projects that clearly are suffering from supply chain issues in terms of slowing down some projects,” he said.

Mr McLoughlin said it is an “economy wide experience” but “something we need to keep an eye on, which we are keeping an eye on”.

“Gathering a picture across recent tenders, the news is mixed. Rather than getting into it now, what I propose to do, is give a more detailed update at the April monthly meeting, where we will have a clearer picture regarding trends.”

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