The Labour Court recommended that some wages be reduced by 7.5%.
The Federation had initially been looking for a 20% reduction.
The proposed reductions would affect tens of thousands of workers.
The Construction Industry Federation says the cuts are vital if the industry is to remain competitive and continue to employ people.
The cuts would affect site-based workers, operations staff and craft workers.
At the peak of the boom there were 286,000 people directly employed in construction in Ireland. This figure has since been reduced to 129,000.
