USE THE CONSTRUCTION CONTRACTS ACT 2013 TO GET PAID WHAT YOU ARE DUE AND ON TIME

The Irish Construction Contracts Act 2013 came into force in July 2016. It allows for payment disputes to be referred to an Adjudicator where a decision will be made within 28 days. The parties to a contract cannot prevent a party referring a dispute for adjudication; it is the parties legal right to do so under Irish law. The parties cannot contract out of the Act, and contract clauses attempting to do so will be deemed illegal.

The Act will apply to payment disputes under main contracts; sub-contracts; architectural design appointments; engineering appointments and project management appointments.

Each year, the chairperson of the Governments panel of Adjudicators publishes a report showing activity under the Act. This report shows that between July 2018 to July 2019, 34 disputes were adjudicated on. Amounts in dispute ranged from €10K to €100K in 10 disputes and €100K to €500K in 13 disputes.

The chairperson’s full report can be seen here https://dbei.gov.ie/en/Publications/Publication-files/Third-Annual-Report-of-the-implementation-of-the-Construction-Contracts-Act-2013.pdf

The UK equivalent of the Act came into force in 1998. Since then the UK Act has been very successful in resolving disputes, where the number of disputes adjudicated upon in year one went from 187 to 2008 in year five.

Before 2016 many construction payment disputes in Ireland had to be referred to the courts. This form of dispute resolution was expensive and time-consuming. Payment disputes under the 2013 Act can now be conducted outside the courts, will only take 28 days to resolve, and professional fees/adjudication fees will be relatively small. The 2013 Act suits small value disputes as well as significant values.

If you wish to discuss the 2013 Act and how it may help you get paid what you are due within 28 days, please contact McCarthy Dispute Resolution on 086-7816358 or peter@mcdr.ie. See also www.mcdr.ie for a full suite of other services provided.

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