Adjudication in Ireland: Resolving Non-Payment Disputes Under Construction Contracts

The Construction Contracts Act 2013 (“the Act”) introduced a mechanism under which certain construction disputes regarding non payment of monies could be resolved by adjudication. A construction contract for a value of less than €10,000, or a contract in relation to a dwellinghouse between a contractor and the person who occupies, or intends to occupy, the dwelling where the floor area is not greater than 200 square metres do not fall within the scope of the Act.  The principle aim of the Act is to preserve cash flow in the construction industry.  

The Act contains a number of procedural steps required to progress a claim.

• A dispute can be referred for adjudication at any time
• A valid payment claim notice (eg an invoice) is important and is the legal document that commences the strict payment timeline to allow a dispute to be referred to adjudication
• Once a dispute has crystallised for adjudication then the next step is to prepare a form known as a Notice of Intention to refer a payment dispute for adjudication. Following service, the parties have five days to mutually agree on an adjudicator; if there is no agreement then either party applies to the Chairperson of the Ministerial Adjudication panel for an appointment
• The referring party must submit full details of the dispute to the adjudicator within seven days of their appointment
• The adjudicator then has 28 days to reach a decision (unless a longer period of time is agreed by the parties, or the period is extended to 42 days by the adjudicator with the consent of the referring party)      
• The decision of the adjudicator is enforceable in the High Court if the other party fails to comply.

For more information on this topic, please contact Godfrey Hogan on godfrey@gibneyhogan.ie or Bernard King on bernard@gibneyhogan.ie The content of this article is provided for information purposes only and does not constitute legal or other advice