The Construction Industry Federation has written to the Minister for Finance, asking him to reverse the PRSI changes made in the Budget, as they will push building costs up significantly.
In its economic review and outlook the CIF says the PRSI rise will cost the industry £30m next year and will have a knock-on effect on all services.
The CIF also says growth in the building sector this year is likely to dip below 10% for the first time since 1994, as the Dublin office market fills to capacity.
Overall growth for the year is forecast at about 7%.