Skip to main content
Normal View

Construction Industry

Dáil Éireann Debate, Wednesday - 16 June 2021

Wednesday, 16 June 2021

Questions (40)

Paul Murphy

Question:

40. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment the provisions in place to require a primary tenderer to ensure that a contractor to whom a contract is awarded by that primary tenderer pays any sub-contractor in full for work undertaken and completed satisfactorily by any such sub-contractor; if there is a public register of defaulting contractors; the procedures for the registration of any such defaulting contractors to make future sub-contractors aware of any such previous defaults; and if he will make a statement on the matter. [32283/21]

View answer

Written answers

The issue of payment disputes under construction contracts is addressed in the Construction Contracts Act, 2013 which applies to certain construction contracts entered into after the 25th July 2016.

The purpose of the legislation is to regulate payments, particularly the timing of payments, under a construction contract covered by the legislation. It provides important statutory payment protections for subcontractors in the construction industry who have been considered vulnerable in the payment cycle in that industry. It also provides a statutory entitlement to avail of adjudication as a means of swiftly resolving payment disputes that arise under construction contracts.

There is also a general prohibition in section 3(5) of the Act that a provision in a construction contract is ineffective if it provides that the payment of an amount due to an Executing party or the timing of such a payment is conditional on the making of a payment by a person who is not a party to the construction contract.

Section 6(1) of the Act provides a right for a party to a construction contract to refer a payment dispute arising under the contract for adjudication. When this right is exercised, the parties to the contract may jointly agree to appoint an Adjudicator of their own choice. In circumstances where the parties cannot or do not agree as to whom to appoint, a party may apply to the Chairperson of the Construction Contracts Adjudication Panel under section 6(4) of the Act to appoint an Adjudicator to the dispute from the Ministerial-appointed Panel of Adjudicators. The adjudication will then be concluded within a set timeframe in accordance with the provisions of the Act.

As construction contracts, by their nature involve private contractual arrangements between parties, there is no statutory public register for cases where non-payment may have arisen. However, as stated above, the Construction Contracts Act, 2013 provides a statutory entitlement to avail of adjudication as a means of swiftly resolving such payment disputes in a professional and efficient way. Full details of the Construction Contracts Act, 2013 are available on the website of my Department at the following link:

https://www.enterprise.gov.ie/en/Construction-Contracts-Adjudication-Service/.

Top
Share