25th July 2016
The Minister for Employment and Small Business, Mr. Pat Breen T.D., has today (Monday) published a revised Code of Practice Governing the Conduct of Adjudications under Section 6 of the Construction Contracts Act, 2013. The Act will apply to certain construction contracts entered into from tomorrow (26th July 2016).
Minister Breen said "The Construction Contracts Act, 2013 brings important changes to the payment practices within the construction industry and now for the first time, payment disputes may be resolved through statutory adjudication within a short timeframe". The Minister added that "the construction industry is a vital part of our economy and this legislation provides both new protections and responsibilities for parties to certain construction contracts covered by the Act. As Minister for Employment and Small Business I am acutely aware of the challenges faced daily by businesses in terms of costs and securing payment. This legislation provides increased certainty in terms of payment arrangements between parties to applicable construction contracts."
Construction Contracts Act 2013 - Code of Practice on the Conduct of Adjudications
ENDS
For more information contact:
DJEI Press Office at: 01 631 2200 or press.office@djei.ie
Note to Editors:
Information on the full provisions of the Construction Contracts Act, 2013 is available on the website of the Department of Jobs, Enterprise and Innovation at www.djei.ie
Construction Contracts Act, 2013
The Construction Contracts Act, 2013 will apply to certain construction contracts entered into after the 25th July 2016 in accordance with Statutory Instrument No. 165 of 2016 entitled 'Construction Contracts Act, 2013 (Appointed Day) Order 2016'. The purpose of the Act is to regulate payments under construction contracts and to provide for, inter alia, a new right to refer a payment dispute for adjudication.
The Construction Contracts Act, 2013 provides, subject to some exceptions, new minimum contractual provisions relating to payment arrangements between the parties to a construction contract. If a payment dispute arises between the parties to a contract covered by the Act, either party may refer the payment dispute for adjudication, which will then take place within a tight timeframe. If the parties cannot agree on the appointment of an adjudicator, an application may be made to the Chairperson of the Construction Contracts Adjudication Panel, Dr. Nael Bunni, to appoint an Adjudicator to the dispute from the Ministerial appointed Panel of Adjudicators.
Some contracts are exempt from the new legislation, including where:
- the value of the contract is not more than €10,000;
- the contract relates only to a dwelling and it has a floor area not greater than 200 square metres and one of the parties to the contract is a person who occupies, or intends to occupy, the dwelling as his or her residence;
- it is a contract between a State Authority and its partner in a Public Private Partnership arrangement;
- it is a contract of employment.
A construction contract entered into after 25th July 2016 and covered by the Act must provide for:
- the amount of each interim and final payment or an adequate mechanism for determining those amounts;
- the payment claim date for each amount due or an adequate mechanism for determining it; and
- the period between the payment claim date and the date on which the amount is due.
Subcontracts must at least provide the following payment claim dates in accordance with the Schedule to the Act:
- 30 days after the commencement date of the construction contract;
- every 30 days up to the date of substantial completion; and
- 30 days after the date of final completion;
The date on which payment is due in relation to an amount claimed under the subcontract shall be no later than 30 days after the payment claim date.
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