The Construction Contracts Act 2013: A New Payment Regime This


Author: Niav O’Higgins, Karen Killoran

All parties operating in the construction sector in Ireland should be aware of the provisions of the Construction Contracts Act, 2013 (the “Act”) which is predicted to become operative in the autumn of 2014. The Act will impose new payment regimes into construction contracts, as well as providing a statutory right to suspend works for non-payment and to refer ‘payment disputes’ to adjudication.

This note focuses on how the Act will change the payment regime as we currently know it under construction contracts.

The Act, once it becomes enforceable, will introduce a number of changes to the payment regime which will require both standard forms of construction contract and bespoke forms to be amended to ensure that no conflicts arise with the requirements of the Act and to provide maximum protection to parties to construction contacts while adhering to the limits of the legislation. It is anticipated that the procedures currently used by both contractors and subcontractors to apply for payment will be replaced with the payment claim notice or amended to incorporate the issuing of a payment claim notice.

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