The Construction Industry Federation has warned that new contracts proposed by the Government for major infrastructural projects will seriously damage the €28 billion industry.
CIF said that rather than making savings, the new contracts will lead to legal battles, role out delays, and spiralling costs.
Contracts for building and civil engineering projects are due to be replaced by the Department of Finance to ensure greater financial certainty.
This means contractors are being asked for a fixed price and will have to take on risks of archaeological finds and delays in utility services.
The federation says this is unwise as the contracts are legally unchecked and so will make rich pickings for lawyers.
It claims it will lead to court battles, which will delay infrastructural projects and end up costing the Exchequer more.
The CIF says it understands the Government’s concerns and supports its aims but recommends amending existing contracts rather than introducing totally new ones.
