Construction Contracts Act 2013 to take effect from 25 July 2016

Friday, 15 April 2016

On 13 April 2016, the Minister for Business and Employment signed the Construction Contracts Act 2013 (Appointed Day) Order 2016. The Order gives legal effect to the Act and sets an implementation date of 25 July 2016. The Act will therefore apply to construction contracts entered into after that date.

By way of reminder, the Act applies to the vast majority of construction contracts with only limited exclusions; for example those with a value of less than €10,000 or related to certain domestic projects. It is not possible for parties to contract out of its application. The Act imposes certain requirements regarding payments under construction contracts including making, in most cases, pay when paid clauses ineffective and also introduces the right to refer payment disputes to adjudication for the first time. The Code of Practice relating to the conduct of adjudications is yet to be published; however it is intended to be published in the next couple of weeks.