New High Court Practice Direction Issued to Assist Acceleration of Construction Adjudication Enforcements

The introduction of the Construction Contracts Act 2013 (“the Act”) brought about welcomed reform for the Construction Industry. The Act introduced a new process of dispute resolution in respect of payment claims which arise in construction contracts, in the form of Adjudication. The effect of such a change was to protect parties to construction contracts by facilitating binding payment claims to preserve the relevant project cash flow. 

Although the Act did result in a dramatic change, the waiting period at enforcement stage of adjudication decisions has been prolonged, flying in the face of what the Act was intended to prevent. 

Following strong recommendations from the ADR Committee of the Law Society of Ireland, the President of the High Court has communicated its intention to issue a new Practice Direction (HC 105) for Adjudication Enforcement Applications which will come into effect on 26th April 2021.

ByrneWallace were involved in the process of making the recommendation as Deirdre Hennessy, Senior Associate in the Infrastructure, Construction and Energy Department, sits on the Law Society’s ADR Committee.

The President has appointed Mr. Justice Simons as the presiding Judge for Adjudication matters and the Practice Direction will allow applications, pursuant to Section 6(11) of the Act, for leave of the Court to enforce or enter judgment and to be made returnable before Mr. Justice Simons at 10:30am on the first available Wednesday. The Judge will give such directions that are deemed necessary in ensuring that an application will be heard and determined with all due expedition. 

Papers will need to be filed in hard copy in the List Room on the previous Friday along with an electronic copy which is to be emailed to the appropriate registrar.
This is an important change to the High Court Practice Directions and the impact of it cannot be understated. It will have the effect of significantly improving the system of enforcing decisions of this nature in Ireland and will make the Act more effective.

Those involved in the area of construction can breathe a sigh of relief to know that important decisions by adjudicators in relation to payment disputes will be dealt with on an expedited basis going forward.  As the effects of this decision ripple down, it will be felt by sub-contractors and contractors alike who will be able to receive payment for their work and provide for a release of cash flow within much quicker timelines. 

The support of the judiciary system to those in the Construction Industry is welcomed and has, as the judiciary described, been done “in an effort to ensure expedition and consistency”. 

With the marked increase in referrals to Adjudication in the last year, we welcome this improvement in law by the High Court and look forward to the positive effects that are bound to result from it.

Should you require any further advice in relation to the new Practice Direction, adjudication, enforcing adjudicator’s decisions or any construction issues please do not hesitate to contact Martin Cooney or Lisa Maloney from the ByrneWallace LLP Construction team.