Measures proposed to improve the delivery of infrastructure in the draft Programme for Government has been welcomed by experts in AECOM.
It proposes a new infrastructure division in a reconfigured Public Expenditure Department, as well as a Cabinet committee focused on accelerating the delivery of infrastructure and housing construction.
John O'Regan, director at AECOM, the infrastructure consulting firm, said the challenges around infrastructure delivery "are absolutely recognised" in the new Programme for Government.
In its annual report, the firm said adopting a 'programmatic' approach to managing large-scale projects could accelerate construction timelines.
AECOM said 'programmatic thinking' would support higher volume and faster delivery of construction projects.
It forecasts 5% growth in output volume in 2025 after some years of mixed performance.
However, it said extended planning and mobilisation periods mean that construction projects in Ireland are taking longer to complete.
'Programmatic Thinking', AECOM said, is already in use on projects by Iarnród Éireann, the HSE, the Land Development Agency and Uisce Éireann, driving greater efficiency and enhanced delivery timelines on major State infrastructure projects.
In its latest review of the market and construction costs, it analysed the construction of houses.
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There were 54,574 housing starts in the first 11 months of 2024, however, it said, record levels of state investment need to be matched by similar levels of growth in investment from the private sector to meet the huge demand for homes.
It forecasts 40,000 housing will be completed this year.
AECOM, which has been operating in Ireland for over 150 years, said continuing viability challenges and lack of supporting water, energy and transport infrastructure are the biggest issues facing the market and could hinder the conversion of existing residential planning permissions into completed developments.
Inflation is still a feature of the market, but it forecasts, tender price inflation will continue to cool in 2025 and is expected to be in the order of 3%.
The report also pointed to the skills shortage in the workforce. Despite ambition and available capital to deliver national infrastructure projects, the availability of a skilled workforce will continue to be a challenge for the Irish economy in 2025.
This includes a less-reported undersupply of contractor management and supervision resources, and staff in professional services firms.
"Ireland's strong economic performance and record government investment in housing and infrastructure reflect a nation building for the future," Mr O'Regan said.
"However, delivering on these ambitions requires a coordinated, programmatic approach to ensure that housing, transport, water, and energy systems develop in tandem.
"With the construction sector at the forefront of this transformation, we have a unique opportunity to address critical challenges, drive sustainable growth, and enhance Ireland's competitiveness on the global stage," he said.
