Building costs. Jan 2023

fliball123

https://www.boards.ie/discussion/comment/120569073#Comment_120569073

From what I see its coming down.

Deisel/Petrol down

supply chain issues no longer a huge issue

Raw materials right back down and some back to pre pandemic levels - IE - Lumber.

40k more workers working in construction from 2021 to 2022 and this will increase further to this year with active campaigns to issue visas for workers to come here to work.

Construction outputs and PMI way down a serious contraction in work for things like extensions so less work and more workers is showing more competition for jobs.

Interest rates continue to go higher and higher with at least another 2 coming before July so further taking would be customers out of the market due to affordability.

The only question is when the lads working in the game will compete or hit the wall

obi604

https://www.boards.ie/discussion/comment/120570729#Comment_120570729

Thank you, so high level, some prices of materials, fuel etc are coming down. more workers.

But the builders etc are not really bringing their prices down

fliball123

https://www.boards.ie/discussion/comment/120570803#Comment_120570803

Well I have quotes from this time last year and now and have seen a 15% reduction, having said that I had 6 builders out quoting and one was over last years quote so some builders have not been bitten yet by the new reality that exists in their industry the other 5 were lower than lasts years quote.

obi604

https://www.boards.ie/discussion/comment/120570863#Comment_120570863

well at least this is good to hear, i.e something going down as opposed to up

wonder when will the new reality really hit the industry

fliball123

https://www.boards.ie/discussion/comment/120571175#Comment_120571175

Well like I say when the customer base that would of been extension buyers are further restricted to credit via interest rates it will start to bite for that part of the construction industry not to mention things like electricity is coming down always sticky coming down the only thing is that construction companies will have to compete to keep the wolves from the door already there has been a huge increase in insolvencies accross the SME sector.

dollylama

What prices are people seeing for readymix concrete? There's a 5 or 10% mica levy going on it in the latter half of this year if I'm not mistaken

fliball123

https://www.boards.ie/discussion/comment/120571230#Comment_120571230

Its supposed to be 5% already since it was announced it has been pushed out twice and gone from 10% to 5% this government would get a severe kicking if they put it on at a time of very high property prices even do property prices are dropping I expect another can kicking exercise, they may well leave it and let the Shinners do when they cease power.

bfclancy2

https://www.boards.ie/discussion/comment/120571230#Comment_120571230

150+ per m in Clare, thats vat included, that was for a less than full load, so probably bit better if getting a full load as price of delivery is same regardless of quantity

obi604

https://www.boards.ie/discussion/comment/120573916#Comment_120573916

is this a good or bad price?

fliball123

https://www.boards.ie/discussion/comment/120573916#Comment_120573916

Do you mean 1500+ ?? as 150 a square meter is very very cheap? :)

bfclancy2

https://www.boards.ie/discussion/comment/120573937#Comment_120573937

150 for a metre of concrete, was 72 when i built 5 years ago

fliball123

https://www.boards.ie/discussion/comment/120573945#Comment_120573945

A lot of that increase has been in the last 24 months and was due to the spike in the energy prices which started to come down at the tail end of last year and will be right back down by the end of the year.

dollylama

https://www.boards.ie/discussion/comment/120573996#Comment_120573996

Carbon tax added to cement this past two years is a big factor we've been told. Prices not as high as e150 in the NW of the country but still up about e40 / metre in two years and talk that it's to go much higher

Akabusi

What are concrete prices like across the border? Would that limit the price in the NW of the country?

muffler

https://www.boards.ie/discussion/comment/120578518#Comment_120578518

I'm fairly close to the Donegal - Tyrone border and I haven't noticed any NI readymix lorries about for some time now. That's not to say that they aren't delivering here but maybe there is a Brexit issue or possibly they aren't competitive.

dollylama

https://www.boards.ie/discussion/comment/120578646#Comment_120578646

The UK loosing the red (agri) diesel had a big impact on quarries and producers in the North which without a doubt fed into their concrete prices

Ubbquittious

All the price increases on everything are starting to get "baked in" now. No fella working wants to get up out of bed for less than 500 a day now and suppliers greeflating 30-50% onto their costs regardless of whether their costs have gone up by anything near that amount or not. It will take a recession or calamity to bring the prices back I'd say

crinkley

Met with my engineer early this week, he says he hasn’t seen any reduction in building costs but the increases aren’t as severe as they were

C3PO

https://www.boards.ie/discussion/comment/120588403#Comment_120588403

That is my understanding too but no doubt you will shortly be told by one particular zealot poster on here that prices are dropping and will continue to do so!

roosterman71

https://www.boards.ie/discussion/comment/120588371#Comment_120588371

You need different fellas. I've had a block layer for €160/day. Carpenter €200/day

fliball123

https://www.boards.ie/discussion/comment/120588990#Comment_120588990

Well construction PMIS are down again last month, I am presenting the raw data and my experience. If people are happy to pay what ever some cowboy is asking without asking questions then that's there prerogative.

https://tradingeconomics.com/ireland/construction-pmi

kevgaa

While prices are coming down the reality is the reductions are not passed onto us the consumer.

Builders are running a business and they are going to try to maximise profits as much as they can. There is still demand as is evident by this forum and Builders will continue to quote high while they have work. Until we see a slow down in demand we wont see any major reduction in costs from builders.

Will that slow down come?

I hope so but none of us have a crystal ball so who knows what will happen. For now all we can do is shop around or gamble and wait it out.

fliball123

https://www.boards.ie/discussion/comment/120599947#Comment_120599947

The reality is construction outputs and PMIs are down and this means these 2 indicators show that demand is way way down.. There is demand there but it is falling off a cliff due to a very high % of would be customers being locked out of getting an extension due to the higher and higher interest rates. I mean come on the price of getting an extension could go up 5 fold and there will still be interest in getting work done as some people have money to spend. Yet demand is down no one here can argue that as its not what the raw data available is showing and the amount of workers working in the construction industry is up 40k from 2021 to 2022.

Also have a good look at boards the requests for getting work done has slowed right down over the last 12 months, 2/3 years ago there would of been request after request on a daily/weekly basis now there is barely a mention in comparison when you go to construction and planning and prices on this site.

kevgaa

Reports and stats are great but the reality from my experience is the builders I’m dealing with in South County Dublin are not reducing their costs just yet.

They all have work on the go at the moment and are booked for the next year according to them (usual line). I do know a few who have just started jobs so they have at least work for 5 months or so..

fliball123

https://www.boards.ie/discussion/comment/120600702#Comment_120600702

A lot of this horsesh1t and tactics builders want to lock in as much work as possible before it completely dries up if people want to pay stupid prices go for it as with everything else there is a huge amount of gouging in the sector and as I said I had a half dozen construction crews out with me and with the usual ah we are out the door busy funny how 3 could start straight away the others two were the summer and one sept and already the lad stating September has told me they can get me in earlier due to cancellations remember a lot of jobs will be from people getting a loan and the same lending rates will be up a good bit more before the end of rate hikes.

enricoh

A mate works in a big concrete plant in Dublin, they are massively down on this time last year. The big multi million jobs are at a standstill - funding has evaporated, extensions still ticking over. Maybe more lads will jump into extensions, renovation etc as a result.

scwazrh

https://www.boards.ie/discussion/comment/120601110#Comment_120601110

Same as the Celtic tiger crash years .Big sites close and the lads used to working on the site then move into small scale residential works.They don’t appreciate that on the large sites they had foreman ,engineers ,architects, QS all making the decisions and now they have to pay attention to all aspects of the project.Inevitability mistakes happen and homeowners are left with poor work.Meanwhile customers think a regular day rate is what works should cost and avoid professional companies with experience on small residential works .

Prices for home extensions are not getting cheaper but they are not rising either with professional companies.One man bands will vary based on if they have any work or not.

oasis fan

https://www.boards.ie/discussion/comment/120573945#Comment_120573945

125 per sq metre including VAT.

I'm based in Sligo.

muffler

https://www.boards.ie/discussion/comment/120657182#Comment_120657182

Cubic metre???

oasis fan

https://www.boards.ie/discussion/comment/120657308#Comment_120657308

Sorry yes, cubic metre.