Figures published by the Society of Chartered Surveyors show prices have fallen to those last seen a decade ago.
According to the data, not only have building prices continued to drop since the last half of 2008, but the downward fall in costings has accelerated this year.
The latest Tender Price Index survey show prices fell by 10.5% between January and June, with a total decrease of 17.3% over the last year.
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Tender prices have slumped by 23% since reaching their peak in the first half of 2007.
All sectors of the building trade have contributed to the decline.
Ken Cribbin, Society of Chartered Surveyors president, said the willingness of some sub-contractor to undercut prices has increased market difficulties.
"This is not sustainable for any period of time and in the absence of any pick up in activity, this will unfortunately lead to firms going out of business," he said.
"Given that the estimated job losses in construction are likely to be just short of 200,000 by the year end, it is essential that the Government prioritize projects that generate more jobs and get such projects to construction as quickly as possible."
Mr Cribbin added: "Investment in public infrastructure also generates a return and improves the competitiveness of the economy while at the same time laying the foundations for the next economic upturn."
(PR/BMcc)
