Written answers
Tuesday, 25 September 2018
Department of Jobs, Enterprise and Innovation
Construction Contracts
Maurice Quinlivan (Limerick City, Sinn Fein)
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238. To ask the Minister for Jobs, Enterprise and Innovation her plans to review the Construction Contracts Act 2013 for the purpose of enhancing payment protections for subcontractors; and if she will make a statement on the matter. [38701/18]
Pat Breen (Clare, Fine Gael)
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The Construction Contracts Act, 2013 came into force for certain construction contracts entered into after the 25th July 2016. The Act applies to both written and oral construction contracts, although some do not fall within its remit, for example, if the value of a contract is not more than €10,000. The purpose of the legislation is to provide new legal rights and obligations on the parties to a construction contract. The Act imposes minimum contractual provisions in relation to payments, particularly the timing of payments and the parties to a relevant construction contract cannot opt out of the provisions of the legislation. The Act also prohibits the practice of ‘pay when paid’, except in the circumstance of a third party to a contract becoming insolvent.
The Act provides specific deadlines for a subcontractor to submit payment claim notices. On receipt of same, payment must be made to a subcontractor within 30 days. If a subcontractor is not paid the amount due under the contract in full and within 30 days, s/he has the right to suspend work until full payment is made. In addition, a subcontractor also has the right to refer such a payment dispute to adjudication.
The Act therefore provides important statutory protections for subcontractors in the construction industry. For it to achieve its intended purpose, it is important that subcontractors exercise their rights under the legislation to ensure they receive full payment for work carried out under a construction contract.
My Department will continue both to monitor the effectiveness of the legislation and to consult with key construction sector stakeholders as to its ongoing impact.
Maurice Quinlivan (Limerick City, Sinn Fein)
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239. To ask the Minister for Jobs, Enterprise and Innovation the number of applications for the appointment of an adjudicator received by the Construction Contracts Adjudication Service in 2016, 2017 and to date in 2018; the number of these adjudicators appointed; and if she will make a statement on the matter. [38702/18]
Pat Breen (Clare, Fine Gael)
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The Construction Contracts Act, 2013 came into force for certain construction contracts entered into after the 25th July 2016. The Act provides for, inter alia, access to statutory adjudication as a means to resolve payment disputes that arise under applicable construction contracts. Either party to a construction contract may refer a payment dispute for adjudication. If the parties cannot agree on whom to appoint as Adjudicator, a party may apply to the Chairperson of the Ministerial appointed Panel of Adjudicators to select an Adjudicator from the Panel to the payment dispute. These applications under section 6(4) of the Construction Contract Act, 2013 are processed by the Construction Contracts Adjudication Service of my Department and the number of applications received together with the number of Adjudicators appointed, are set out in the following table.
Applications | 2016 | 2017 | 2018 to date |
---|---|---|---|
Number of applications for appointment of Adjudicator | 1 | 1 | 13 |
Number of Adjudicators appointed | 0 | 1 | 11 |
Maurice Quinlivan (Limerick City, Sinn Fein)
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240. To ask the Minister for Jobs, Enterprise and Innovation when the second annual report of the implementation of the Construction Contracts Act 2013 will be published; and if she will make a statement on the matter. [38730/18]
Pat Breen (Clare, Fine Gael)
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I have received the second annual report on the implementation of the Construction Contracts Act, 2013 from the Chairperson of the Construction Contracts Adjudication Panel and it will be published shortly by my Department.
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