There are fears that rising construction costs could threaten work on a major flood defence scheme in Cork.
12 months ago when the Glashaboy River flood relief scheme in Glanmire went out to tender it was valued at €14 million, however due to construction inflation it’s believed the scheme could now cost up to €17m.
The preferred bidder was due to begin soon, but has now raised concerns about increased costs, particularly in relation to concrete and steel.
The Construction Industry Federation says in the past public works contracts were fixed price thus preventing negotiations on price variation after the tender process
Conor O'Connell of the CIF told RedFM News that he's hopeful that recent Government changes to public contracts in address rising costs will ensure that public works projects such as the Glashaboy scheme will go ahead.
"There's been an extraordinary sequence of events that has led to an extraordinary increases in the cost of materials.
"In many instances, contractors are not in a position to stand over prices that were summited, 6 or 12 or 18 months ago.
"Unfortunately, Government contracts are fixed price, and that has led to difficulties.
"There was been recent changes, we're assessing those changes, we welcome those changes that have been introduced by the Government, and we're hoping they will alleviate some of the cost burden increases that have taken place."
