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.”