Decentralisation and its effect on Construction Inflation

Decentralisation and its effect on Construction Inflation

Postby PVC King » Fri Dec 12, 2003 12:38 pm

There has been much discussion on the effects on the standards of Government and the political motivation behind decentralisation.

What effect will the building of these additional offices and houses have on the Construction inflation levels in Ireland?

Given the office vacancy rate of 15.4% in Dublin and the lack of engineering capacity for major infrastructural projects?
PVC King
 

Postby sw101 » Fri Dec 12, 2003 3:58 pm

Dunno about dublin but i hope all the regional offices are put forward as open competitions. Great oppurtunities there for young firms. FKL and BoydCody stand out as having done well out of such competitions in recent years
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Postby PVC King » Fri Dec 12, 2003 4:32 pm

There is no question that these firms produce work of the highest standard. But should construction not be market led, such as catering for the pent up demand in the residential market in Dublin?

Or building civic facilities where the majority of the population is.

Or designing buildings for the organic growth that is happening anyway due to the extra incentives given by the IDA
PVC King
 

Postby ro_G » Fri Dec 12, 2003 4:55 pm

if any capital project costs more than €120k it should by right, be put to open tender, unless the OPW have some other scheme on the boil. - i.e. they pre-design the buildings and then just tender the construction.

my guess is that the budget for this will not induce spending on landmark buildings.
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Postby ro_G » Fri Dec 12, 2003 4:57 pm

Don't get your point Diaspora, decentralisation has nothing to do with being market-led. It is for the most part anti-market. By design. Which is a good thing in principle. It could be argued that civic monies are best spent being practical. But then again, would we have the buildings of the past with that mentality?
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Postby PVC King » Fri Dec 12, 2003 5:10 pm

My point is three fold

Firstly interventions to skew the market should take account of the condition of the market i.e. not enough residential capacity and excess offices. It is therefore going to have no positive supply side effect.

Secondly the construction industry is close to capacity delivering infrastructure and housing, creating demand for office construction in other places when 15.4% of all offices in Dublin are vacant is crazy. It will add to construction inflation driving ALL construction costs up including apartment construction prices up in Dublin.

Thirdly decentralisation is about securing better value for the taxpayer, this strategy will necessitate the construction of new schools and particularly roads because most of the places selected would never have the critical mass to provide local transport.
Buy the old John Hinde 'Rush Hour in Ireland' Postcards with the sheep, soon it will be civil servants in Micras
PVC King
 

Postby ro_G » Fri Dec 12, 2003 10:50 pm

lol. Civil Servants in BMW's post benchmarking ;)

well, my thinking is this is short term discomfort for long term change. Therefore, unfortunate but neccesary for long term. That said, I got the thin edge of the wind - bloody Waterford!
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Postby PVC King » Fri Dec 12, 2003 10:57 pm

Not at All ro_G you did not get the thin end of the wedge, I'D live in Waterford but not Charles-Towwwn.

As for the micra analogy that is because for a lot of decentralised CC's the promotion op's are going to dry up seriously.

That is the whole point of spatial planning put enough people together to benifit from the benifits of agglomeration

Waterford Cork Galway Ballina Limerick Sligo Letterkenny the list of the right places goes on and ariston

The time to do it is when Dublin has an office shortage.
I don't begrudge the CC's their benchmarking €€€s which are small in comparison to the costs of the decentralisation scam
PVC King
 


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