In the coming weeks there will be a new government in place. One of the key issues facing that government will be construction.
There is no denying the media interest in the sector. Our industry continues to occupy the airwaves, the newspaper column inches, and with that, the minds of our elected officials.
This presents an opportunity for the sector. We can use this focus to build a platform outlining how they can get essential infrastructure, greater housing, FDI, commercial buildings and more built. A platform from which we can detail how the Government can increase construction activity by implementing policies like an Infrastructural Act, which is centrally coordinated and overseen within government.
If we are to achieve what is needed for the sector; then we need broader buy – in from within the Federation and without, to show how we can help the Government achieve what is necessary. For this to happen we will innovate on how we are communicating with government and step up our vocalisation of the key issues.
Part of this will include leveraging our members knowledge and insights to create the vision for success and provide the rationale for what the Government must do to support the construction sector and support the conditions needed for greater construction activity.
We have a strong voice, which we can use to be effectively and consistently heard.
The next government is likely to have a treasury that would be the envy of many previous governments and even our EU partners. For those riches to be managed effectively, we will highlight the challenges both privately and publicly that are impeding construction.
Challenges like getting the Government to put in place meaningful commitments to multiannual funding for bodies responsible for the delivery of critical infrastructure.
For example, Uisce Eireann must be adequately funded to construct the necessary level of new water and waste infrastructure to support proposed housing targets.
Unfortunately, it has no new capital to invest in new pipes in the ground in 2024 making 50,000 houses a year impossible to deliver.
Constructing infrastructure is an investment in our economic model and the future of our nation that must accommodate up to 1 million extra people. Therefore, An infrastructure Act similar to the Climate Action Plan is one way to do this.
The industry has the capacity to deliver, but we must have greater coordination at the centre of government to manage this capacity and avoid stop start construction, delays and tender cancellations, which cripples a contractor’s ability to plan their resources, recruitment and equipment.
Paul Sheridan is the Construction Industry Federation’s Director of Main Contracting
Further reform of public procurement and the public form of contract is essential. The planning system is undermining our ability to construct the essential infrastructure.
New government ministers must use their constitutional powers to push through critical projects, like the Waste Supply Project, offshore and onshore renewable energy and the Metro.
Resourcing the planning system with the capacity and more importantly with the right skills is vital alongside shifting the approach of planning decisions from maps and 300 page specifications and start designing, drawing and modelling what our future cities and towns of the future will look like.
Similar to other industries, the CIF members believe that it is becoming increasingly difficult to run a business with growing regulation and bureaucracy.
The Government must look at the cost of doing business in construction, including the costs of building itself and employment costs.
Fundamentally the Government and their officials must recognise the unique nature of construction. It is not a fixed location industry.
The industry moves to where the next project is and therefore our workforce needs to be mobile.
The Government must use levers like income tax policy to support the construction professional and skilled worker’s needs.
Options like reducing BIK for construction vehicles, reducing the cost of HVO and providing accessible business grants to support sustainability strategies, innovation and digitalisation.
All industries, including construction are in a battle for talent. The industry has increased employment by 20 per cent since 2020.
Only recently the CSO released data showing that sectoral employment increased by 9.7 per cent or 15,600 persons in Q3 compared to the Q2 of this year.
Construction can scale up when there is a clear and sustained pipeline of work.
Government funding of off the job training for apprenticeships is critical to supporting the 10s of thousands of construction apprenticeships.
Technological disruption through digitalisation, off-site manufacturing and the future use of AI will make construction a more productive and attractive industry to work in.
The Government needs to promote this and increase the provision of professional apprenticeships like civil engineering, quantity surveying and planning.
The new Government must take urgent action to put in place the conditions for the construction industry to thrive and deliver for the state or we will lose competitiveness which will undermine our economic model and housing construction.
Paul Sheridan is the Construction Industry Federation’s Director of Main Contracting. He provides administrative leadership of the Civil Engineering Contractors Association and Master Builders and Contractors Association. He is also the secretary to the CIF’s Procurement, Tendering and Contractual Matters Policy Sub-Committee.
