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Construction Contracts

Dáil Éireann Debate, Tuesday - 12 April 2011

Tuesday, 12 April 2011

Ceisteanna (103)

Ciaran Lynch

Ceist:

119 Deputy Ciarán Lynch asked the Minister for Finance if he will accept the provisions of the Construction Contracts Bill or make similar regulations; if he will consider the points raised by an organisation in correspondence (details supplied) and other representative groups and organisations; and if he will make a statement on the matter. [7297/11]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will be aware that the Construction Contracts Bill 2010 was introduced by Senator Feargal Quinn and passed Committee and remaining stages in the Seanad on 8 March 2011. It is now before the Dáil. The two main points raised in the correspondence supplied relate to the exemption contracts under €200,000 from the provisions of the Bill and the provision in the Bill that an adjudicator's decision is non-binding where the dispute is referred to arbitration.

In relation to the exemption of contracts below €200,000 from the Construction Contracts Bill 2010, I understand that the Senator pointed out in the Seanad that this threshold was proposed to reduce the administrative burden on contractors involved in smaller contracts.

I understand that the provision making the decision of an adjudicator non-binding where the dispute is referred to arbitration was included in the Senator's Bill to ensure that the State had the right to appeal a decision to protect the taxpayer.

These two concerns remain valid, nonetheless, I am now examining the Bill and will then decide how best to proceed.

It is important that a solution to the problem of non-payment must not place an unnecessary regulatory or cost burden on the parties to the dispute, other parties involved in the project, or the State.

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