Snowballing costs of current state projects ‘could scupper future NDP plans’

The Office of Government Procurement has warned that public works yet to be tendered for could be jeopardised by inflation-driven cost overruns in the present

Michael McGrath, the Minister for Public Expenditure and Reform, recently told the Business Post that large capital underspends in recent years would help to keep the NDP on track this year. Picture: Sasko Lazarov/

Key infrastructure projects could be jeopardised by cost overruns on existing public works contracts as soaring construction costs continue to pressure the national finances, a state body has warned.

The Department of Public Expenditure and Reform (DPER) earlier this month agreed to share the burden of rapidly rising input costs contractors are facing as part of a new inflation framework agreement.

The state has agreed to pay 70 per cent of the construction cost inflation ...