Government to give construction companies top-ups to off-set inflation

Mr McGrath said soaring costs in fuel, energy and building products have not stabilised, leaving construction firms that have entered into fixed-price contracts for public works extremely exposed

The Government has agreed to pay contractors working on public projects tens of millions of euro extra to allow for soaring inflation.

Up to €160m extra could be paid out by the end of the year to construction companies involved in new road, civil infrastructure, and public buildings under a new "cooperation framework".