A number of state construction projects have collapsed because they were awarded to contractors who claimed they could do the job at an unrealistically low price, it has been claimed.
The Society of Chartered Surveyors Ireland found half of all tenders for construction projects are coming in below cost.
John Curtin, president of the Society of Chartered Surveyors, warned accepting below-cost tenders may not provide adequate quality and expertise.
"Below-cost tendering by contractors is likely to continue over the next 12 months," Mr Curtin said.
"This race-to-the-bottom poses a real threat that tenders will not provide the required standard of construction quality and professional expertise needed for the long-term viability and return on investment of any project over its life cycle."
A survey, carried out by the surveyors organisation, found the percentage of below cost tenders had risen from 37% to 52% in the last two years.
Key findings include:
* Below-cost tenders are approximately 17% below realistic construction costs.
* 97% of quantity surveyors report an increase in below-cost tendering over the last three years, and 87% report an increase in the last 12 months.
* 83% of quantity surveyors have experience of a client accepting the lowest bid even though it was considered below cost.
* 55% of quantity surveyors have experience of projects failing to be completed because they were below-cost - 68% of which were public projects.
* 83% of quantity surveyors believe that they or their clients have lost business to tenders which were submitted at below-cost.
The surveyors organisation warned contractors of the dangers of tendering for projects at a value below the cost of undertaking the work, and warned clients of the dangers associated with accepting tenders which they believe to be below-cost.
"The longer-term consequences for projects that cannot be completed at the tendered price cannot be underestimated," Mr Curtin added.
"It is in the public interest to ensure that the highest construction standards are provided for at the outset and can be maintained over the life-time of the construction project."
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