13th April 2016
The Minister for Business and Employment, Ged Nash, has today signed the 'Construction Contracts Act 2013 (Appointed Day) Order 2016' which will give legal effect to the provisions of the Construction Contracts Act, 2013.
The Order states that the '25th July, 2016 is appointed pursuant to section 12(2) of the Construction Contracts Act 2013 (No. 34 of 2013) and that Act shall apply in relation to construction contracts entered into after that date.'
Minister Nash said: “This is a significant day in the calendar of events leading to the implementation of this important legislation and I am very pleased to be in a position to make this Order. It will transform the landscape in which the construction sector operates in Ireland.”
The Minister added: “The changes to the way applicable construction contracts will now be drawn up will guarantee payment to sub-contractors at regular intervals during the life of a contract, and in addition, the legislation provides for a statutory adjudication service which entitles parties involved in a payment dispute to seek to resolve the matter through adjudication. This will take place in a short time period – the Act envisages 28 days.”
It is intended that the Code of Practice relating to the conduct of adjudications will be published in coming weeks.
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Note on Construction Contracts Act, 2013
The Construction Contracts Act, 2013 provides, subject to some exceptions, new minimum contractual provisions concerning payment arrangements between the parties to a construction contract. Where payment disputes do arise between the parties to a construction contract, either party will have the right to refer the payment dispute for adjudication, which will be concluded within a set timeframe. Where the parties cannot agree on an adjudicator, the Chairperson of the Ministerial Panel of Adjudicators will appoint an adjudicator from that Panel to the dispute.
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