Construction cost manager Patterson Kempster Shortall has warned the Government that it must make hard decisions about tackling the infrastructural deficit due to the shortage of skilled construction workers.
Its annual review of the industry shows that labour costs rose by 23% in 2000, with output growing by 10%.
PKS's Tender Index, which analyses the price that contractors are offering for new work, has revealed an average increase of 15% during 2000.
PKS managing partner Michael Webb says this will threaten the sector's ability to deliver on major building projects.
Mr Webb says the Government should focus on the real bottlenecks, and delay less essential projects like the proposed national sports stadium.
