New adjudication process for construction contracts comes into force from 25 July 2016

On Tuesday, 5 July 2016, the Minister of State for Employment and Small Business published the final Code of Practice governing the conduct of adjudications pursuant to the Construction Contracts Act, 2013, which is due to come into force on the 25 July 2016.

The Act will apply to construction contracts entered into after 25 July 2016.

The provisions of the Construction Contracts Act, 2013, provide new rights and obligations for the parties to construction contracts. The Act imposes minimum contractual periods in relation to payments and introduces a statutory right to refer payment disputes for adjudication. 

Section 9 of the Construction Contracts Act, 2013, provides that the adjudicator shall be bound by the Code of Practice published by the Minister. The Code of Practice sets out the procedures to be followed in relation to the adjudication process, including time limits, appointments of the adjudicator and the general obligations and duties of the adjudicator throughout the process. 

Parties to construction contracts should familiarise themselves with the Code of Practice.  The Department of Jobs, Enterprise and Innovation has set up a Construction Contracts Adjudication Service (see www.djei.ie) who will administer the processing of applications to the Minister's Panel of Adjudicators for appointment.