The CIF’s latest Construction Outlook Survey found that 68pc of firms had little or no involvement in public works projects in the third quarter of the year.
That figure is expected to rise slightly to 69pc in the final three months of 2025, it said.
Public works include major projects such as housing, roads, water infrastructure and public buildings. CIF noted the low level of involvement is making it harder to deliver the infrastructure Ireland needs.
Many firms said they are unwilling to commit time and money to bids
Companies pointed at too much paperwork, high tendering costs and long delays in getting contracts as the main reasons they are avoiding public sector projects.
Many firms said they are unwilling to commit time and money to bids when outcomes are uncertain.
However, there are some early signs of improvement. Around one in five companies said they expect their involvement in public infrastructure to increase over the next year.
Outside of public works, construction activity remains strongest in house building, with about two-thirds of firms active in residential projects.
Just over half are working in non-residential construction, such as offices and retail, while fewer than a quarter are involved in civil engineering projects.
Larger construction companies continue to perform better than smaller firms as businesses with turnover above €9m were the most confident about winning new work and increasing turnover in the months ahead.
Rising costs remain a major challenge. Nearly seven in 10 companies said the cost of materials has increased over the past year, it said.
Many expect prices to rise again before the end of 2025, with more than half of firms saying they have already increased project prices, particularly smaller companies.
Employment levels are expected to remain mostly stable, as firms noted no major changes to staffing in the coming months, although some civil engineering firms expect job numbers to fall.
“Our Q4 Construction Outlook Survey highlights a critical challenge, that engagement with public works contracts remains a weak link in infrastructure delivery,” CIF CEO Andrew Brownlee said.
source