Written answers

Tuesday, 8 November 2022

Department of Housing, Planning, and Local Government

Departmental Data

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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365. To ask the Minister for Housing, Planning, and Local Government the average all-in cost of social housing units approved by local authorities for the past five years in tabular form; and if he will make a statement on the matter. [54387/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Social Housing Investment Programme (SHIP) funded construction projects by local authorities must, like all publicly-funded construction programmes, comply with the Public Spending Code and Capital Works Management Framework and accordingly, my Department periodically issues Unit Cost Ceilings (UCCs) for each local authority area, for use as a key benchmark for the development and costing of scheme designs at capital appraisal stage. UCCs are based on an analysis of returned data from tendered social housing schemes.

To monitor tender cost trends and to inform the UCCs levels, my Department analyses the tender data for the construction cost element of new build schemes approved under the SHIP, where sufficient information is available to allow such costs to be extrapolated and where the information available is appropriate for comparison purposes.

Outlined in the tables below are average construction costs (incl. VAT) per unit type, recorded as part of the aforementioned analysis for projects tendered in each of the years 2017 to 2021. The costs vary, depending on design, location and on the level of abnormal requirements for each scheme, for instance existing site conditions, demolitions, service diversions and site access requirements. Abnormal costs are also separately identified in the tables below.

The construction costs as shown, are derived from unit cost analysis and capture the construction cost element only including any abnormals (i.e. not all-in costs)

Over and above the construction costs, the all-in delivery costs include:

- Design/technical fees: Design fees vary from project to project, depending on the location, size and complexity of a scheme (and depending on whether design services are provided by a local authority in-house or via external appointment). As a guideline/indicator, design fees are generally expected to range between 7.5% to 12.5% of construction costs.

- Land cost: Land costs will vary significantly from project to project, depending on location and ownership status (i.e. land costs could vary from existing local authority land at no cost to land purchased at market value).

- Utilities: Connection fees for Irish Water, ESB, gas, etc. As a guideline/indicator, utility connection costs are generally in the order of €7k per unit.

- Other Costs: Other items that make up the all-in delivery cost can include site investigations/surveys, archaeological requirements, Percent for Art contributions - and will vary from scheme to scheme.

2017 2017 2018 2018
Average Construction Cost Per Unit € 2017 Average Abnormal Costs per unit € Average Construction Cost Per Unit € Average Abnormal Costs per unit €
1bed house 155,177 11,479 169,184 23,507
2bed house 178,411 14,381 190,521 21,412
3bed house 190,887 7,905 218,039 24,063
4bed house 223,309 10,909 219,574 16,358
1bed apartment 178,523 18,811 258,057 46,978
2bed apartment 225,260 12,760 292,581 58,999
3bed apartment 330,376 41,056 302,579 50,334
2019 2019 2020 2020
Average Construction Cost Per Unit € Average Abnormal Costs per unit € Average Construction Cost Per Unit € Average Abnormal Costs per unit €
1bed house 189,320 26,699 184,435 24,949
2bed house 198,174 20,022 193,665 24,287
3bed house 226,455 19,227 211,518 24,602
4bed house 234,794 19,510 262,311 40,196
1bed apartment 291,762 32,609 198,719 22,875
2bed apartment 290,902 26,249 230,691 16,337
3bed apartment 323,407 27,379 N/A N/A
2021 2021
Average Construction Cost Per Unit € Average Abnormal Costs per unit €
1bed house 176,385 21,432
2bed house 228,470 29,755
3bed house 236,096 24,887
4bed house 283,656 32,131
1bed apartment 212,765 40,557
2bed apartment 244,296 43,113
3bed apartment 306,096 50,451

A range of factors can impact on the costs for individual social housing construction projects. Project-specific issues can always arise and will be central to how a project can be advanced and the costs for same. Addressing these design, construction and cost factors are part of the regular engagement that happens between my Department and local authorities, which is focussed on facilitating the earliest possible delivery of new social homes that are both high quality and value for money. To that end, as well as sharing UCCs with local authorities, my Department has provided a 'Design Manual' which will guide local authorities and their Design Teams/consultants, on the design of social housing site layouts and the internal layouts of individual social homes. These initiatives are important in the work to improve the quality, cost-effectiveness and pace of delivery of social homes and I look forward to continuing our work with our delivery partners to take advantage of these opportunities.

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