Lead times and programme challenges
The industry is facing challenges related to lead times, unrealistic project timelines, and the need for improved quality tender and construction information. There are also concerns about the lack of commercial construction activity, high interest rates, and retention of young skilled staff.
“We have definitely seen a slowdown in the rate at which costs are rising. Labour increases are high on the agenda and we will see this coming through in the SEO negotiations.”
Turner & Townsend survey respondent
The industry is also experiencing a shift towards residential and healthcare projects, with concerns about the availability of resources to handle this increased activity. This robust activity in the residential sector has been bolstered by strong demand and government support.
Source: Turner & Townsend survey
To mitigate, or limit, the increases in programme lengths, respondents have suggested various solutions. These include better commitments from public bodies like the ESB and Uisce Éireann, quicker response from utility providers, early purchase of materials and technology, use of digital tools, and increasing the use of modern methods of construction (MMC).
Critically, respondents emphasised the importance of upfront planning, collaboration, integration of project teams, appropriate risk transfer and early engagement with contractors. They have also highlighted the need for better lead times for project commencement and better front-end planning. Overall, contractors view the tendering landscape as gradually improving, indicating a cautious yet optimistic outlook for the future.
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