Global construction supply shortage pushing up costs in NI

A global supply shortage has driven up supply costs and caused delays for Northern Ireland's construction sector.

Builders have seen a rise in demand as the pandemic spurs people to spend money on their homes they would normally spend on holidays.

But timber, steel and plastic have become much harder to get, and have risen in price considerably.

An industry body said uncertainty about rising supply prices made it difficult for builders to cost projects.

Federation of Master Builders director Gavin McGuire said: "We have seen price rises with steel, timber, cement and pipes. Timber for example is up about 70 or 80% already this calendar year.

"Most projects are planned maybe six months to a year ahead of time, so for you as a client, a price that a builder would like to commit to now, realistically is not going to be what it's like in six months time."

Foreman James McKeag is working for John Dynes and Son on a housing development outside Newtownards calling Finlay's Lane.

He said: "It's just been phenomenal - the amount of work that's out there at the minute. Everybody's very busy and it's hard to get tradesmen, anybody that's very good is usually booked up for six or eight months.

"Somebody might want a wooden floor and you tell them we have to order that in, it's going to take eight weeks to find the timber for it - most customers want it done yesterday," he added.

Lockdown has caused an increase in demand for certain kinds of work, but now uncertainty about the cost of supplies is making some builders turn work away.

Contractor Noel Savage said: "We have been very busy we have been turning away a lot of work. But now we are turning it away for a different reason. It's nearly impossible to price a job knowing where we are going to be in two or three months."

"Some of the stories we are hearing that timber and steel could be nearly impossible to get come July," he added.

Builders cannot pass on increased costs to their customers where they have signed a contract.

That is a big concern for public sector work, where prices and contracts were agreed months ago.

The Construction Employers Federation in Northern Ireland said: "We have a meeting this afternoon with representatives from the Department of Finance to find a way to meet some of those additional costs for contractors."

"This is absolutely unsustainable and will actually lead to significant shrinkage in the contractor market, loss of jobs but importantly lack of capacity to deliver the important infrastructure that Northern Ireland needs."