Oireachtas Joint and Select Committees

Thursday, 16 May 2019

Public Accounts Committee

National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed)

9:00 am

Mr. Paul Quinn:

It is the Construction Contracts Act. From recollection it was passed in 2014 and enacted. It is based in the Department of Business, Enterprise and Innovation at present. It provides a mechanism where subcontractors can ensure they get payment, but they need to act and ensure they are enforcing their rights. It gives them rights and it provides for low-cost adjudication. If a subcontractor is not getting paid he can go to an adjudicator and get a very quick determination, which is legally binding, so he can enforce his rights. The challenge in the industry is that often subcontractors leave it too late and then find themselves on the wrong end of having that leverage. However, those rights are there and, from a departmental and public procurement perspective, we encourage subcontractors in that regard because they often come back to the State as the last avenue of recourse. We had that with the Carillion collapse.

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