Oireachtas Joint and Select Committees

Wednesday, 12 June 2013

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform

Construction Contracts Bill 2010: Committee Stage (Resumed)

2:10 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I move amendment No. 30:


In page 10, lines 15 to 21, to delete subsections (11) and (12) and substitute the following:
“(11) The decision of the adjudicator shall be binding until the payment dispute is finally settled by the parties or a different decision is reached on the reference of the payment dispute to arbitration or in proceedings initiated in a court in relation to the adjudicator’s decision.
(12) The decision of the adjudicator, if binding, shall be enforceable either by action or, by leave of the High Court, in the same manner as a judgment or order of that Court with the same effect and, where leave is given, judgment may be entered in the terms of the decision.
(13) The decision of the adjudicator, if binding, shall, unless otherwise agreed by the parties, be treated as binding on them for all purposes and may accordingly be relied on by any of them, by way of defence, set-off or otherwise, in any legal proceedings.”.
At the start of the Second Stage debate on the Bill in the Dáil I highlighted the very helpful contributions of both main Opposition spokespersons, Deputies Fleming and Deputy McDonald, in respect of the regulatory impact assessment, RIA, which took place nearly 18 months ago. This consultation highlighted a number of matters relating to the Bill that required further clarification. Chief among those concerns was the provision in the Bill that limited the effectiveness of the adjudication process by making the adjudicator’s award binding, providing the award is not appealed. This provision was included to provide protection to the State in the event of insolvency of the payee.

During the Second Stage debate a number of speakers also asked for the provisions to make the adjudicator’s award binding, that is, payable even if the award is appealed to arbitration. I have taken on board the concerns and the amendments I table today will mean that adjudication will be binding and apply equally to private and State contracts. The adjudication provisions contained in the Bill are vital to the proper functioning of the legislation. In a sense, they give the legislation the necessary teeth to provide a swift and cost effective means of dispute resolution.

Four big issues emerged from the Second Stage process and this was one of them. I did give an indication at the time that we would do this and that is why we are moving on this grouping of amendments which I hope will meet the support of colleagues.

Comments

No comments

Log in or join to post a public comment.