Too much bureaucracy, the administrative burden, low margins and lowest price awarded over quality are among top concerns discouraging construction firms from taking up public works contracts.
That's according to the findings of a recent survey of 221 firms carried out by the Construction Industry Federation (CIF).
85% of respondents said they believe public infrastructure projects are awarded to the lowest price bid.
Just 12% said they think that quality of work is a primary factor.
More than half of contractors said they have been expected to take on the financial risk for a project despite inaccurate and incomplete background information being provided by the contracting authority.
Around one in two respondents said they have no or low involvement in public infrastructure projects.
For more than two thirds, public works contracts make up less than half their annual turnover.
"The results of this survey are alarming, especially at a time when we need to accelerate infrastructure delivery," said Paul Sheridan, Director of Main Contracting in the Construction Industry Federation.
"The Government relies on construction contractors to build vital infrastructure such as water, wastewater, energy, transport and education to support public wellbeing and investment."
"Yet, half of construction companies are not opting to work on public infrastructure, with more attractive commercial opportunities available with private clients both domestically and internationally."
The CIF says Government should commit in the budget to guaranteeing multi-annual funding for Uisce Eireann and similar public bodies, move away from lowest price tenders and improve risk management.
