Written answers

Thursday, 4 December 2025

Department of Enterprise, Trade and Employment

Construction Industry

Photo of Ken O'FlynnKen O'Flynn (Cork North-Central, Independent Ireland Party)
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265. To ask the Minister for Enterprise, Trade and Employment the specific productivity indicators his Department uses to evaluate the impact of State-funded innovation schemes in the residential construction sector, including Built to Innovate and Construct Innovate, and to confirm whether metrics such as output per labour hour, output per euro of State support, and time-to-completion benchmarks are currently in use; and if not, when such indicators will be established. [68900/25]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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My Department through Enterprise Ireland has supported the establishment of Ireland's first national Technology Centre for the construction sector "Construct Innovate", with a specific mandate to address housing related challenges and opportunities. My Department also enables the roll out of Enterprise Ireland's Built to Innovate package of productivity and innovation supports to the domestic residential construction sector, which has approved €6.8 million to date in grants to the sector.

The productivity indicators used to evaluate the impact of Built to Innovate suite of grant supports and the Construct Innovate Technology Centre, are summarised below:

Built to Innovate

Enterprise Ireland considers the following productivity metrics when evaluating significant Built to Innovate productivity funding applications:

  1. reduced construction time and improved quality, including the reduction of snag lists,
  2. projected growth in residential unit output from a base year (usually the last full financial year) to 3 years full financial years from that base year,
  3. revenue growth per FTE employee on a similar timeline,
  4. specific projected productivity improvements and additional cost savings through waste reduction (addressing the 8 wastes addressed in Lean projects).
Production time and quality are key Built To Innovate productivity measures, and they are commonly used in several industrial sectors. These measures are easily quantified, and they are indicators of production efficiency throughout the production cycle. Labour productivity is considered as a more general Built to Innovate measure. For example, factory systems on the site will drive site productivity through subcontractors, but these systems may not reduce the main contractor's site labour. Also, using increased offsite will reduce site labour, but increased offsite can be more costly, if sufficient productivity gains cannot be achieved in the factory.

Construct Innovate

Construct Innovate’s performance in relation to productivity is measured using key performance indicators. Each key performance indicator includes a target set for Year 5 of Construct Innovate’s contractual framework. These include; Associate/Patron Members, Transfer of Centre Staff to Companies, Knowledge Transfer Events, Core Funding for Current Projects, Core Funded Projects Commenced, Core Funded Projects Completed, Competitively Won Collaborative Research Funding Projects (measured both in number and in funding amount), Ancillary Centre Specific Objectives, and No. of Projects contributing to Climate Action and Sustainable Development Goals.

Photo of Ken O'FlynnKen O'Flynn (Cork North-Central, Independent Ireland Party)
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266. To ask the Minister for Enterprise, Trade and Employment the methodology used by his Department to assess value-for-money in the allocation of more than €6.5 million under the Built to Innovate programme for residential construction productivity, including the performance criteria applied to participating firms and the evidence of productivity gains recorded to date. [68901/25]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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Enterprise Ireland's Built to Innovate programme of supports to the domestic residential construction sector offers different grant aid packages, subject to eligibility, across four areas:

  • The Digital package supports the implementation of Industry 4.0, digitally enabled Lean systems to develop offsite manufacturing capability to increase output and produce more complex, higher value products.
  • The Lean construction grant package is designed to deliver higher levels of on time and on budget project delivery, through implementing Lean methodologies onsite and the increased use of offsite and near site production.
  • The Research & Innovation grant package is designed to support the development of products that will increase Pre-Manufactured Value (PMV), and reduce the embodied carbon, in residential construction.
  • Finally, through the Sustainability package, Enterprise Ireland can support clients on their journey to sustainability through targeted grants that enable them to develop high impact carbon reduction plans.
Enterprise Ireland considers some, or all, of the following productivity metrics in the methodology for evaluating significant Built To Innovate productivity funding applications:
  1. reduced construction time and improved quality, including the reduction of snag lists,
  2. projected growth in residential unit output from a base year (usually the last full financial year) to 3 years full financial years from that base year,
  3. revenue growth per FTE employee on a similar timeline,
  4. specific projected productivity improvements and additional cost savings through waste reduction (addressing the 8 wastes addressed in Lean projects).
Production time and quality are key Built To Innovate productivity measures, and they are commonly used in several industrial sectors. These measures are easily quantified, and they are indicators of production efficiency throughout the production cycle.

Sales per employee are influenced by several factors such as, the product mix and the level of outsourcing. Therefore, labour productivity is considered as a more general Built To Innovate measure. For example, factory systems on the site will drive site productivity through subcontractors, but these systems may not reduce the main contractor's site labour. Also, using increased offsite will reduce site labour, but increased offsite can be more costly, if sufficient productivity gains cannot be achieved in the factory.

From March 2022 to June 2025, total Built To Innovate grants of €6.8m were approved for 45 companies. These companies included builder developers, main contractors, subcontractors, design teams and offsite manufacturers. On receipt of final claims from firms for Built To Innovate grants, productivity improvements are assessed.

Photo of Ken O'FlynnKen O'Flynn (Cork North-Central, Independent Ireland Party)
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267. To ask the Minister for Enterprise, Trade and Employment the findings of the recent mid-cycle international evaluation of Construct Innovate carried out in November 2025, including the assessment of its productivity-related KPIs, its impact on residential construction delivery, and any recommendations for corrective actions. [68902/25]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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The Construct Innovate Technology Centre is currently operating under a five-year contractual framework with Enterprise Ireland, and is currently in year three. In line with the Centre's governance and funding structure, Enteprise Ireland commenced an independent international evaluation to assess that the Centre is working to its stated programme objectives and delivering to its industry mandate and KPIs.

Enterprise Ireland has received a draft report from the international expert panel on the mid-cycle international evaluation of Construct Innovate, conducted during November 2025, which is currently under internal review.

As part of the evaluation, the Centre presented an overview of its work programme and results to date to the expert international panel. The panel also met with key Government Departments, including my Department, the Department of Housing, Local Government and Heritage; and the Centre Steering Commitee that comprises industry representatives; and also the industry Chair of the Centre Steering Committee. The expert panel also spoke with companies who had engaged with the Centre to garner feedback on what has worked well, and any suggestions for improvement.

Recommendations to Enterprise Ireland arising from the evaluation may be implemented over the remainder of the Centre's current five-year Phase, and are also taken into account by Enterprise Ireland in decision-making regarding the future operation and direction of the Centre at the conclusion of its first five years of operation.

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