Growing competition among contractors in the Irish market, due to a slowdown in new projects, has led to a reduction in tender prices, according to the Society of Chartered Surveyors Tender Price Index.

The latest index, compiled by the Society’s Quantity Surveying 2,200 members, is based on actual tender returns for non-residential projects, during 2007.

There was a greater decline during the first half of the year, at 4.5%, compared to 4.3% during the second half of 2007.

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This downward trend is expected to extend into 2008, which suggests the industry may return to a more sustainable level of work.

The average non-residential tender prices fell by around €500,000 in 2007, which makes prices more comparable to the period during 2005.

DTZSherry FitzGerald’s Seán McCormack, who is president of the Society of Chartered Surveyors, told the Irish Examiner: "This latest research on tender prices confirms all reports in the industry."

"Prices are particularly competitive at present as both main contractors and specialist subcontractors seek to replenish their order books to allow them retain key staff until the market improves," added Mr McCormack.

The index covers the entire country and is based on mostly new build projects with values in excess of €0.5m.

(PR)