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Construction Costs

Dáil Éireann Debate, Monday - 11 September 2017

Monday, 11 September 2017

Questions (494)

Joan Burton

Question:

494. Deputy Joan Burton asked the Minister for Foreign Affairs and Trade the level of construction inflation that has been experienced by his Department in the 18 months to September 2017 in respect of construction projects; the way in which he monitors construction inflation and the mechanisms his Department employs to tackle this; and if he will make a statement on the matter. [38025/17]

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Written answers

The Office of Public Works provides my Department with office accommodation for its offices in Ireland. They also provide a shared service for the maintenance of these buildings and management of construction projects on the Department’s behalf.

In the case of our offices abroad, the Department undertakes construction projects to maintain those properties which the State owns and, in the case of leased properties, carries out necessary maintenance to ensure lease requirements are adhered to.

These projects would be smaller, short term and in conjunction with national procurement guidelines, openly tendered in the local market for the work as required. As the cost of construction is at the current market rate the impact of construction inflation is not materially significant. Most construction projects overseas are on a fixed cost basis and cost control is a major element of project management.

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