Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Contractors warned not to tender below cost

The Society of Chartered Surveyors Ireland (SCSI) has warned construction contractors not to tender below cost for projects because the construction industry itself will suffer in the long term as a result.

The percentage of below cost tenders submitted for construction projects has risen from just over a third (37%) to over a half (52%) in the last two years, according to the SCSI. It warned contractors that this “unsustainable practice” will lead to long term problems for clients and will cost the industry jobs and expertise.

“This race-to-the-bottom poses a real threat that tenders will not provide the required standard of construction quality and professional expertise needed for the long term viability and return on investment of any project over its life cycle,” said SCSI president John Curtin.

“The longer- term consequences for projects that cannot be completed at the tendered price cannot be underestimated. It is in the public interest to ensure that the highest construction standards are provided for at the outset and can be maintained over the life-time of the construction project. Ensuring that the tender takes these factors into account and is not just based on the lowest price is crucial.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.