Vol. 550 No. 1
53 Mr. Flanagan asked the Minister for the Environment and Local Government if his attention has been drawn to a difficulty being experienced by sub-contractors in view of the fact that there appears to be no mechanism to allow for adjudication or arbitration on a dispute between sub-contractors and main contractors; and if consideration will be given towards the introduction of some form of recognised agreed dispute resolution process. [3358/02]
The terms of contracts between main contractors and sub-contrac tors are primarily the responsibility of the parties to the contract. However, I understand that most such contracts contain a standard arbitration clause.
The report of the strategic review committee on the construction industry recommended that a mandatory and binding alternative dispute resolution mechanism, which would be quicker and cheaper than formal arbitration should be provided for in all construction contracts.
The forum for the construction industry plans to introduce, by mid-year, a new standard form of contract between clients and main contractors for civil engineering projects, which will include a mandatory and binding conciliation clause. Under this clause, both parties to a dispute would have to invoke a conciliation procedure, prior to invoking arbitration. The conciliator's finding will be binding on both parties, unless and until it is changed at arbitration. The forum hopes that both parties to the contract will generally accept the conciliator's findings and will seldom, if ever, invoke arbitration.
I understand that, if this new standard form of contract is agreed and adopted, it will then serve as a model for the development, by the forum, of a new standard form of contract between main contractors and sub-contractors.
