Construction subcontractor payment dispute law not implemented

Legislation governing payments to construction subcontractors has not come into effect two years after being signed into law, Seanad Éireann has heard.

The Construction Contracts Act 2013 was introduced in the Seanad five years ago and passed two years ago. However, the provisions of the law have not yet been implemented.

The Act introduces new minimum payment arrangements between parties to a construction contract, but will not be applied to contracts signed before the law enters force.

If a payment dispute arises between parties to a construction contract covered by the Act, either may refer the payment dispute for adjudication by a special ministerial-appointed panel, which will then take place within a tight timeframe.

Dr Nael Bunni has been appointed as Chairperson of the Construction Contracts Adjudication Panel.

If the parties to the contract cannot agree on the appointment of an adjudicator, either may apply to Dr Bunni to appoint an adjudicator from the Panel of Adjudicators to the dispute.

Independent senator Gerard Craughwell said it was “nothing short of scandalous” that it has taken “two full years to appoint a chairman and a panel, and to draft a code of practice”.

Ged Nash, minister of state for jobs, said: “I am taking all steps necessary to bring about the implementation of the Act as soon as possible following the Government decision late last year to assign responsibility for the Act to me as Minister of State.”