CONSTRUCTION CONTRACTS ACT – TOP 10 WHAT YOU NEED TO KNOW

Sean Downey, Director of Specialist Contracting Construction Industry Federation

With the imminent commencement of the Construction Contracts Act, we would like to highlight the top ten items members should be aware of when the Act comes into force:

1. The Construction Contracts Act applies to construction contracts entered into after 25th July 2016.

2. The schedule specifies your payment terms if your contract is silent.

3. Principle contracts can have extended credit terms.

4. Sub-contract credit terms are a maximum of 30 days after payment claim date.

5. The Construction Contracts Act is a statutory instrument, applied to both public and private sector construction contracts that you cannot contract out of.

6. Get a copy and read your contract together with the main contract (if applicable).

7. Set up a systematic, electronically tracked procedure for the serving of all notices.

8. All Payment Claim Notices and Response to Payment Claim Notices must reference the Construction Contracts Act 2013 and your formal contract document (preferably noting the payment clause).

9. The Construction Contracts Adjudication Service (under the aegis of the Department of Jobs, Enterprise and Innovation) are to issue a ‘How To’ guide for the Construction Contracts Act, together with draft Payment Claim Notices and Response to Payment Claim Notices – for guidance only.

10. Know your subcontract; know the Construction Contracts Act; keep good records and serve all notices in accordance with the Act and your contract.

For further information, the Construction Contracts Act can be found in its entirety HERE and the Code of Practice Governing the Conduct of Adjudications is available HERE.

The Department of Jobs, Enterprise and Innovation is commencing a national information campaign in relation to the commencement of the Construction Contracts Act, 2013.

Please find HERE and HERE two letters from Loughlin Quinn, Director of the Construction Contracts Adjudication Service.

Further information can also be found on the Department website.