Written answers

Thursday, 24 March 2022

Department of Enterprise, Trade and Employment

Debt Collection

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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169. To ask the Minister for Enterprise, Trade and Employment the legislation that exists and the way that the State protects sub-contractors and sub-suppliers in payment disputes and debt recovery following a main contractor and builder entering receivership; and if he will make a statement on the matter. [15643/22]

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The Construction Contracts Act, 2013 applies to certain construction contracts entered into after 25 July 2016. The Act defines the term 'construction contract' for the purposes of the legislation and some contracts are exempt from the legislation including if the value of the contract is not more than €10,000.

The Act provides, inter alia, important statutory protections for subcontractors in the construction industry. It 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 applies to construction operations where the following items are supplied under a construction contract, as defined in the Act, and which also provides for their installation:

(i) building or engineering components or equipment; or

(ii) materials, plant or machinery; or

(iii) components for systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or for security or communications systems.

The Act provides a statutory right for a party to a relevant construction contract to refer a payment dispute arising under the contract for adjudication. When this right is exercised, the parties to the contract may jointly agree to appoint an Adjudicator of their own choice to the dispute. If the parties cannot or do not agree as to whom to appoint, a party may apply to the Chairperson of the Construction Contracts Adjudication Panel under section 6(4) of the Act to appoint an Adjudicator to the dispute from the Ministerial appointed Panel of Adjudicators.

In circumstances where a company is in Receivership and a subcontractor wishes to pursue a case under the Construction Contracts Act, 2013, the subcontractor may wish to take appropriate legal or other advice in relation to such a claim, which should take account of the contract that the parties have entered into.

Comprehensive information on the Act is available on the website of my Department at enterprise.gov.ie/en/Publications/Information-Booklet-Construction-Contracts-Act-2013.html.

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