Ireland’s construction market is being tested by several key challenges. While the market is slowly recovering and displaying signs of forward momentum in terms of housing, apartments, and student accommodation, there are still moderate material increases. Subcontractors are struggling with the legacy of increased costs from COVID-19 restrictions, and geopolitical tensions, which may lead to further insolvency cases. Upward pressure on labour costs due to the cost of living also is impacting tender costs, rendering some projects unviable.

The shortage of qualified workers in most trades is exacerbating the struggle of contractors and subcontractors to make any margin. The industry is witnessing a lot of below-cost tendering, leading to concerns about insolvencies and the stability of the market. There is considerable competition in both main and subcontract works, and despite labour shortages, too many contractors are competing for the same work. There are also concerns around increased costs and fixed-price contracts.