On Tuesday 29 July 2013, the President of Ireland signed the Construction Contracts Act 2013 (“the Act”). The primary objective of the Act is to improve cash flow for sub-contractors within the construction sector. To this end, the legislation:
1. Prohibits “pay-when-paid” clauses;
2. Introduces a statutory right to make payment claims and to receive details of why claims are not paid in full;
3. Introduces 28 day adjudication as a temporarily binding dispute resolution mechanism.
The Act is similar in many ways to the UK Housing Grants, Construction and Regeneration Act 1996 which has proved hugely successful since its implementation. This is primarily due to the support adjudicator’s decisions have received from the Courts in England.
This legislation here is in many ways an improvement on the UK law and it is a positive and encouraging step forward for the Irish construction industry. If the Act can be embraced in the same manner as it has been in the UK, the Irish industry will become a more equitable and efficient environment for all parties involved. In the coming months, Quigg Golden will keep you informed on the Act and its implementation through regular updates on our website and through events and conferences.