For many years the Irish Construction Industry has been blighted by the tactic of the paying party delaying payment for completed works for advantage. This practice was brought into sharp focus with the collapse of the Irish banking sector and, consequently, the Irish economy in 2008. As a result of the downturn many main contractors became insolvent and this highlighted the large debts accumulated over long periods of time owed by main contractors to numerous subcontractors. In order to address this situation the Government introduced the Construction Contracts Act 2013 (the CCA 2013). The CCA 2013 includes provisions imposing payment entitlements (Section 3(4)), outlawing pay when paid clauses (Section 3(5)) and introducing statutory adjudication in payment disputes in construction into Ireland for the first time (Section6).
Adjudication has been described as a fast track dispute resolution process. It is designed to provide a means whereby disputes in relation to payment can be resolved on a binding, if interim, basis so that money due on foot of such awards becomes immediately payable. Payments are made on foot of enforceable decisions pending the full resolution of the underlying dispute through negotiation, through court proceedings or through arbitration as the case may be.
At Hussey Fraser our team of construction lawyers provide specialist legal advice on all aspects of the contracting relationship. In an area of law that is constantly changing and evolving, it is critical that employers, contractors and subcontractors avail of advice that is relevant and up to date. Hussey Fraser will assess your dispute quickly and efficiently. We will provide an early appointment for a consultation and guarantee that your enquiry will be dealt with in confidence by an experienced construction lawyer.
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