The Construction Contracts Adjudication Service is responsible for matters in relation to the implementation of the Construction Contracts Act, 2013.
Construction Contracts Act 2013
The Construction Contracts Act 2013 applies to certain construction contracts entered into after 25 July 2016 in accordance with the Construction Contracts Act 2013 (Appointed Day) Order 2016 (SI No 165 of 2016). For new construction contracts entered into after 25 July 2016, the parties to a contract covered by the Act must ensure that the contract conforms to the legislation.
Construction contract
The Act defines the term 'construction contract' for the purposes of the legislation and some contracts are exempt from the legislation including:
- if the value of the contract is not more than €10,000; or
- if 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; or
- if it is a contract between a State Authority and its partner in a Public Private Partnership arrangement; or
- if it is a contract of employment.
A construction contract covered by the Act shall 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.
If a main construction contract does not provide for the above matters, the following payment claim dates will apply to the contract:
- 30 days after the commencement date of the construction contract;
- 30 days after the payment claim date referred to above and every 30 days thereafter up to the date of substantial completion; and
- 30 days after the date of final completion.
In addition, the date on which payment is due in relation to an amount claimed under the contract shall be no later than 30 days after the payment claim date.
Subcontractor right to payment
Subcontracts must at least provide the following payment claim dates:
- 30 days after the commencement date of the construction contract;
- 30 days after the payment claim date referred to above and every 30 days thereafter 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 a subcontract shall be no later than 30 days after the payment claim date.
Notices required under the Act
An Executing party is required to serve a Payment Claim Notice on the Other party to the construction contract, no later than 5 days after the payment claim date.
If the Other party contests that the amount claimed by the Executing party is due and payable, the Other party is required to respond in writing to the Executing party, no later than 21 days after the payment claim date. These notices are required to be served in respect of each individual payment dispute. For guidance, Template Forms are available.
Payment dispute and adjudication
Section 6 of the Construction Contracts Act, 2013 provides a right for a party to a construction contract to refer a payment dispute for adjudication. A payment dispute for the purposes of the Act is any dispute relating to payment arising under the construction contract.
Adjudication provides a mechanism for the resolution of a payment dispute where the dispute is referred by one of the parties to an independent third party, an Adjudicator, who will make a decision on the dispute.
The former Minister of State, Mr Pat Breen, published a Code of Practice governing the conduct of adjudications under section 9 of the Construction Contracts Act 2013. The Code of Practice is binding on all Adjudicators operating under the Construction Contracts Act 2013 in accordance with section 6(8) of the Act.
Appointment of an Adjudicator
If a payment dispute does arise between the parties to a construction contract covered by the Act, a party to the contract will have the right to refer the payment dispute for adjudication, which will be concluded within a set timeframe.
Either party to the construction contract has the right to refer the payment dispute for adjudication. In order to exercise this right, a Notice of Intention to refer the Payment Dispute for Adjudication should be served. This notice is required to be served in respect of each individual payment dispute. For guidance, Template Forms are available.
The parties may jointly agree to appoint an Adjudicator of their own choice. An agreement as to whom to appoint as the Adjudicator should normally be reached in the period of five days from and including the day the Notice of Intention to Refer the Payment Dispute for Adjudication is served. The parties may select an Adjudicator from the list of the current members of the Ministerial appointed Panel of Adjudicators.
Application to the Chairperson for appointment of Adjudicator
If the parties cannot agree on whom to appoint as Adjudicator, a party may apply to the Chairperson of the Construction Contracts Adjudication Panel, Mr Bernard Gogarty, to appoint an Adjudicator to the dispute from the Ministerial appointed Panel of Adjudicators.
If an application is to be made to the Chairperson of the Construction Contracts Adjudication Panel, it shall be made not earlier than five days from and including the day on which the Notice of Intention to Refer the Payment Dispute for Adjudication was served.
If an applicant is applying to have an Adjudicator appointed by the Chairperson to a number of payment disputes arising under the same construction contract, separate applications must be submitted for each individual payment dispute. A form is available to apply to the Chairperson of the Construction Contracts Adjudication Panel to request the appointment of an Adjudicator by following the link below.
Application to the Chairperson for Appointment of Adjudicator
Rules of the Superior Courts
The procedure to be followed in the case of applications under section 6(11) of the Construction Contracts Act, 2013 for leave of the High Court to enforce or enter judgment in respect of a decision of an Adjudicator appointed under section 6 of the Act is set out in the attached Rules of the Superior Courts SI No 450 of 2016.
Information booklet on the Construction Contracts Act 2013
An information booklet is available for guidance on the main provisions of the Construction Contracts Act, 2013 and the Code of Practice governing the conduct of adjudications.
Contact details for general enquiries
Construction Contracts Adjudication Service
Department of Enterprise, Trade and Employment,
Earlsfort Centre,
Lower Hatch Street,
Dublin 2,
D02 PW01.
Tel: +353 1 631 2121
Email: info@enterprise.gov.ie
Website: enterprise.gov.ie