Construction costs begin to slide

GOVERNMENT nerves about building expensive new hospitals, schools, health centres, garda stations and other building projects may be eased, as construction costs have started to slide.

Both Government, with capital projects worth hundreds of millions of euro in hand and others put on hold, and private firms taking on major capital spending projects, will benefit from a reported 5% drop in construction tender prices.

The Society of Chartered Surveyors said that building tender prices dropped 2.8% in the second half of 2002, following a 2.2% reduction in the first half of last year.