Seanad debates

Wednesday, 19 May 2010

Construction Contracts Bill 2010: Second Stage

 

5:00 pm

Photo of Larry ButlerLarry Butler (Fianna Fail)

I will be brief. I support Senator Quinn's proposal. I myself made some proposals as to how we might make additions to the Bill. In my other life as a developer and contractor I have had the best possible relationships with sub-contractors. I was a sub-contractor myself at one time and, therefore, know the difficulties that can arise when contractors decide not to pay sub-contractors. That is very regrettable.

The subcontractor brings great expertise and fast processes to the construction industry. Everyone benefits from having a good subcontractor in place. It is vital that the subcontractor would have a means of resolving disputes promptly. The adjudication system is vital. The Minister of State has decided that there is a larger dimension to this Bill than one might believe. It is important we take five months to do something and that we do it once and do it right. This House has the expertise and knowledge to ensure a good Bill will result from this process.

It is important we set up a bond system in the legislation that would ensure subcontractors would have the security of knowing they would be paid. The stock answer they are given in court is that they will be paid, only to find out that they are not paid, in which case they must return to court. These circumstances are ridiculous and are what we want to prevent. A subcontractor who has taken a case may have paid a fortune to get the client into court only to find he cannot be paid. In this case, he is no longer in a financial position to return to court. That is the problem and it is why subcontractors go out of business. Subcontracting is now a total nightmare.

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