The case referred to has been brought to my attention recently and I refer below to the options available to sub-contractors who experience difficulties in securing outstanding payments which may be due to them under certain construction contracts.
The Construction Contracts Act, 2013 falls within the remit of my Department. This legislation applies to certain construction contracts entered into after the 25th July 2016 and imposes minimum contractual provisions in relation to payments, particularly the timing of payments, arising under a construction contract. It also provides a statutory entitlement to avail of adjudication as a means of resolving payment disputes that arise under applicable construction contracts.
The Act sets out the necessary procedures to pursue such a case through adjudication and my Department has published an information booklet on the Act and template forms which may be used to refer a case. This information is available on my Department’s website at www.dbei.gov.ie.
It should be noted that certain contracts are exempt from the legislation and these exemptions are:
- if the value of the contract is not more than €10,000; or
- if the contract relates only to a dwelling and it has a floor area not greater than 200 square metres and one of the parties to the contract is a person who occupies, or intends to occupy, the dwelling as his or her residence; or
- if it is a contract between a State Authority and its partner in a Public Private Partnership arrangement; or
- if it is a contract of employment.
In circumstances where a company is in examinership and a sub-contractor wishes to pursue a case under the Construction Contracts Act, 2013, the relevant sub-contractors may wish to take appropriate legal advice.