Introduction

The Construction Contracts Act 2013 (Appointed Day) Order 2016 provides that the effective date of the Construction Contracts Act 2013 (Act) is 25 July 2016. Following this date, all ‘’construction contracts’’ as defined by the Act are subject to the well-known statutory timelines for payment with a corresponding right to seek adjudication in the event of a payment dispute.  

This past summer marked the eighth year that the Act was fully operational in the Irish construction sector. Given the growing popularity of adjudication, stakeholders in the Irish construction sector are continuing utilise adjudication as a method…

Introduction

In our last blog post we discussed mitigation and construction disputes. We looked at a situation where a contractor refuses to rectify defective work and the employer engages another contractor to undertake the remediation. Subsequently, the employer seeks to recoup the remediation costs from the initial contractor. In those circumstances, we looked at the importance of considering whether the employer has mitigated its loss. Continuing the theme of defending an employer’s claim, in this post we consider betterment. A betterment defence is often run in tandem with mitigation.

Betterment relates to the correction of a defect in such a…

Disputes often arise in relation to defects. For example, an employer may contend that a particular work item is defective, while a contractor may argue that the item is not defective. Usually, the employer will request that the defective work is remediated by the contractor. If the contractor fails or refuses to remediate the work item, the employer will engage others to carry out the remediation and seek to recover the costs from the contractor. Similarly, an employer who terminates the contractor’s employment will engage another contractor to complete the project and seek to recoup the additional costs from the…

Introduction

This month saw the UK Supreme Court give the long-awaited judgment in Abbey Healthcare (Mill Hill) Ltd v Augusta 2008 LLP (formerly Simply Construct (UK) LLP) [2024] UKSC 23, which considered whether a collateral warranty was a construction contract for the purposes of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996). Thereunder, a construction contract is defined as carrying out construction operations.

If a collateral warranty is a construction contract for the purposes of the HGCRA 1996, disputes arising thereunder can be adjudicated upon. However, if a collateral warranty is not a construction contract, disputes…

Introduction

When sending contractual notices and other communications it is important to consider the contractual and/or statutory provisions regarding the form the communications should take.

For example, NEC requires that ‘communication which the contract requires is communicated in a form which can be read, copied and recorded.’ JCT provides that notices and other communications shall be in writing and can be ‘sent or transmitted by the means … as the Parties have agreed’ in the contract. Under the Construction Contracts Act 2013, if the parties do not agree on the manner for delivery of notices, then the notices can be…

Introduction

On occasion when a referring party in an adjudication process seeks leave to enforce an adjudicator’s decision, the responding party will argue that due to the referring party’s poor financial standing, it will not be able to repay the amount awarded if it subsequently transpires in arbitration or litigation proceedings that the sum directed to be paid was not in fact due and owing.

The circumstances in which the enforcement of an adjudicator’s decision will be stayed due to the finances of the referring party is an issue which has yet to be resolved by the Irish courts. The…

Introduction

The annual reports from the Chairperson of the Construction Contracts Adjudication Panel indicate that, to date, adjudicators have dealt with some large value disputes. For example, in 2021 the amounts in dispute in four adjudications were over €10m. Of course, the amount in dispute does not automatically mean that the dispute is overly complex. A smaller disputed amount may give rise to more complex issues.

As adjudication is a speedy process, the question arises as to whether a dispute may be too large or complex for adjudication. To date, this matter has not been dealt with by the Irish…