Cogent Managing Director Kevin James offers insights into SCSI findings of 13% construction price inflation in 2021, on RTE Radio 1 Business News.
The main reasons for current price inflation are high price volatility across a range of building materials — particularly insulation, cement, plasterboard metals and fuel – labour shortages and the extremely high demand for projects across all tiers as the industry continues to readjust in the wake of the Covid crisis.
The SCSI calls on government to introduce additional measures to ensure existing projects are afforded a level of price variation. This will enable contractors to respond to frequent material prices increases and ensure more balanced risk pricing.
The industry will have to step up its cost benefit analysis of materials, utilise modern methods of construction, identify innovative cost saving solutions and streamline pre-construction periods to minimise the impact of inflation.