Dominic Hannigan
Question:86. Deputy Dominic Hannigan asked the Minister for Public Expenditure and Reform when the Construction Contracts Act will come into force; and if he will make a statement on the matter. [3060/14]
View answerWednesday, 22 January 2014
Questions (86, 87)
Dominic Hannigan
Question:87. Deputy Dominic Hannigan asked the Minister for Public Expenditure and Reform when he expect his officials to finish working on the code of practice for the adjudication procedure for the Construction Contract Act; and if he will make a statement on the matter. [3061/14]
View answerWritten answers
I propose to take Questions Nos. 86 and 87 together.
The Programme for Government contained a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. My colleague, Minister of State Brian Hayes worked closely with Senator Feargal Quinn to develop the Senator's private member's Construction Contracts Bill into a robust piece of legislation. The Bill was signed into law on the 29 July 2013.
The key objective of the Construction Contracts Act is to ensure that cash flows down the supply chain on all construction contracts. This issue is addressed in the Act by providing statutory arrangements in relation to payments under construction contracts, including providing for interim payments. This will reduce the subcontractor's exposure to non-payment. The Act also provides the means for subcontractors to enforce these rights; by suspending their labour and by introducing a new mechanism for the swift resolution of payment disputes through a process of adjudication.
My officials have been working with stakeholders in the development of the code of practice that will apply to the adjudication process. I expect that this process will be concluded shortly. A Commencement Order to bring the legislation into force will be signed once a Chair and panel of adjudicators has been established.