Shortly before Christmas, the Chairperson of the Construction Contracts Adjudication Panel published the Eighth Annual Report (‘Report’) concerning the Construction Contracts Adjudication Panel. The Report covers the period from the 26 July 2023 to 25 July 2024.

In that period there were 101 applications for the appointment of an adjudicator with the Chairperson appointing 93 adjudicators. The appointments led to 74 issued decisions. Some disputes were settled (approximately 12%) or withdrawn after an adjudicator was appointed. The number of adjudicators appointed in this period represents the highest number of appointments since the Construction Contracts Act 2013 (the ‘CCA 2013’) came into force. The table below illustrates the number of appointments by the Chairperson in the last five years:

The Chairperson notes that the increase in the number of appointments ‘… illustrates that statutory adjudication under the Act continues to gain momentum and that parties to construction contracts are pursuing their rights to seek redress for non-payment or underpayment.’ It should be noted that the appointments referred to by the Chairperson do not include adjudications where adjudicators were appointed by agreement.

The Chairperson also notes that whilst most adjudications involve disputes between sub-contractors and main-contractors, others such as employers, architects and engineers are using the adjudication process to resolve disputes. It must be remembered that architectural design, engineering and other professional services come within the definition of construction operations for the purpose of the CCA 2013 and therefore should a dispute arise regarding the provision of those services, it can be adjudicated upon. During 2024, we have seen an uptake of design professionals using the adjudication process to recoup unpaid professional fees.

Interestingly, the reported figures show an increase in adjudications against government agencies, with main-contractors and an architect and engineer all pursuing government agencies. This may show that the initial reluctance by some to pursue government agencies in adjudication is dissipating.

The most appointed adjudicators were those with backgrounds in quantity surveying followed by Barristers and Architects. The number of final payment disputes and interim payment disputes referred to adjudication were roughly the same (45 and 41 respectively) with other types of payment dispute making up the balance of disputes referred. The Eighth Annual Report shows that the most common amount in dispute was in the €100K to €500K range, however, a considerable number of disputes were in the €1m to €5m and €5m to €10m ranges.

The Chairperson concludes by highlighting that:

7.5 It is important that Employers, Main Contractors and Subcontractors adhere to their obligations set out in the Construction Contracts Act, 2013. I would also point out that if a party to a construction contract, as defined under the Act, is contemplating referring a payment dispute for adjudication, all appropriate procedures required under the Act and the ‘Code of Practice Governing the Conduct of Adjudications’ should be followed.

Failure to properly adhere to the CCA 2013 may lead to delays with the appointment procedure, wasted costs or challenges to an adjudicator’s jurisdiction.

In conclusion the Eighth Annual Report gives an insight into the adjudication process, and we consider that it demonstrates:

• Adjudication is increasing in popularity and is a mainstream method of resolving construction disputes.

• Main-contractors use adjudication to resolve disputes against government agencies, whereas previously there may have been a reluctance to do so.

• Professionals, such as architects and engineers, are utilising adjudication to resolve disputes.

• Adjudication is used to resolve disputes where the amounts at issue are considerable.

• Some disputes are resolved after an adjudicator is appointed but before a decision is reached.