The Director General of the Construction Industry Federation (CIF), Tom Parlon, today welcomed the signing of the Construction Contracts Act by Minister for Business and Employment, Ged Nash. 

This gives legal effect to the provisions of the Construction Contracts Act that aims to regularise cash-flow for construction companies and reduce costs by providing for rapid resolution of disputes.

CIF President, Michael Stone, stated; “This Act will benefit the entire supply chain by bringing more certainty to contracts and dispute resolution in the industry.  The sector is in recovery mode and this Act will help companies plan, budget and invest more accurately in meeting Ireland’s increasing economic demands.  I’d like to thank the Minister on behalf of the industry for his efforts in bringing this important piece of legislation into being.”

Phillip Crampton, Chairman of the CIF’s Procurement, Tendering and Contracts Committee said; “The Act is positive news for construction sector and will mean more certainty of payment for all in the supply chain.  This certainty will improve the competitiveness of the sector facilitating growth and the delivery of quality public and private construction projects.   The new legislation will also reduce the amount of management time and expense currently involved in dealing with costly disputes.  The Procurement Tendering and Contractual matters Committee has worked closely with Minister Nash, Senator Fergal Quinn, the late Brian Lenihan and many others over the last seven years to facilitate this legislation.  It’s a significant day for the industry.

The Construction Contracts Act provides, subject to some exceptions, new minimum contractual provisions concerning payment arrangements between the parties to a construction contract. Where payment disputes do arise between the parties to a construction contract, either party will have the right to refer the payment dispute for adjudication, which will be concluded within a set timeframe. Where the parties cannot agree on an adjudicator, the Chairperson of the Ministerial Panel of Adjudicators will appoint an adjudicator from that Panel to the dispute.

This follows on from the appointment of Dr Nael Bunni as Chairperson of the Panel of Adjudicators last July, and the subsequent appointment a Panel of Adjudicators in December.

The Order states that the ’25th July, 2016 is appointed pursuant to section 12(2) of the Construction Contracts Act 2013 (No. 34 of 2013) and that Act shall apply in relation to construction contracts entered into after that date.’

CIF will be providing high-level training and briefings, to prepare companies for the new legislation.