New social housing tasks threat being jeopardised except native authorities are allowed to pay builders extra, an Oireachtas committee heard on Tuesday.
Frank Curran, chairman of the County and Metropolis Administration Affiliation’s committee on housing and land-use, stated ceilings imposed by the Division of Housing final yr as to how a lot councils may spend on housing constriction “must be examined”.
Addressing the Oireachtas housing committee Mr Curran stated “development worth inflation is an actual concern”. He stated fewer contractors had been tendering for public housing contracts whereas tasks the place contractors had been already on-site confronted not being accomplished as a result of native authorities couldn’t meet their growing prices.
Eoin O’Broin, TD, Sinn Féin’s housing spokesman, stated he had heard of social housing tasks underway that “might not be accomplished except there may be larger flexibility from the division by way of the hole between the ceiling and the brand new costs”. He stated worth ceilings had final been set by the Division within the second quarter of 2021.
Mr Curran stated: “It’s only a fluid state of affairs for the time being so it positively must be examined.
“You may have the development worth inflation, however allied to that you’ve got materials provide chains points; you’ve gotten a expertise scarcity – moist trades specifically however all expertise throughout the development business. After which you’ve gotten a buoyant non-public sector development happening for the time being as nicely [which is competing with the public sector]”.
Eddie Taaffe, of the Native Authorities Administration Company’s housing supply co-ordination workplace, stated, “during the last six months or so we’re seeing a discount within the variety of tenders submitting for public works contracts”. He stated there have been seen as “dangerous due to the value variation concern”.
It was a selected drawback for smaller contractors in rural counties that had good relationships with native authorities and sometimes construct developments of fewer than 20 houses.
“They’re kind of contractors who appear to be much less capable of take up the value will increase they usually might be those that can undergo probably the most on this which can be a pity.”
He stated delays in getting constructing provides adversely impacted these builders too as contracts had been taking longer to finish.
“What may have been a 26-week programme is now being pushed out 4, 5 six weeks in some cases,” stated Mr Taaffe.
The committee heard 11,000 social housing dwellings had been “below development” with development of an additional 3,500 about to begin and eight,500 had been in “planning and design”.
“These dwellings are unfold over about 1,200 separate tasks being delivered by each native authorities and accredited housing our bodies. Along with these figures, proposals for an additional 8,000 dwellings are at the moment being thought of by native authorities and AHBs,” stated Mr Curran.