Construction company BAM Ireland boosted its 2017 turnover by 29% over the previous year to €465m, and posted a pretax profit of €16m, down from €41m in 2016..

Despite the growth, chief executive Theo Cullinane signalled a note of caution: “Margins and reinvestment in businesses are too low, while obligatory risks are too high. Hugely risky under-pricing of work and risk remains, and below cost tenders are still being accepted by procurement authorities. This is evidenced by recent examples of company failures and bad construction practices, and the devastating effect this has on the supply chain."

On tax, Cullinane commented: “There has been much discussion about the 13.5% VAT rate on house construction, but the total contribution to the Exchequer from the sale of a new home, as a percentage of the sales price, is 36%.  This should be part of any discourse around ‘affordability’ which is entirely within the government’s control.”

Among projects completed in 2017 were One Microsoft Place in Leopardstown and courthouses at Letterkenny and Drogheda.

Cullinane (pictured) added; “Perhaps the highlight of 2017 was beginning work at the new Children’s Hospital at the St James’s campus and its two satellite centres in Blanchardstown and Tallaght.  This project represents the biggest single development in the history of the state.  We take great pride at being involved in the development of a facility that will change the way medicine is practised in Ireland.”

In Association with

Established in  Ireland in 1958, the Dutch company is one of Ireland's largest construction businesses, employing 2,000 people directly and indirectly. Its principal activities are building contracting and civil engineering in the public, private and PPP sectors. Other activities include facilities management, property development and rail infrastructure.

This year the company began work on Navigation Square in Cork, a seven-storey office development that will have capacity for more than 3,000 people. In Galway BAM also delivered the new Human Biology building at the NUIG campus.