December saw the publishment of the Eighth Annual Report of the Chairperson of the Construction Contract Panel (“the Report”). The purpose of the Report is to provide a yearly insight into the use of Adjudication under the Construction Contracts Act 2013 (“the Act”) within Ireland’s construction industry.
To provide some background context, the Act has two main components for construction contracts; firstly, to provide standard payment timeframes and payer response procedures that must be met in a construction contract and secondly to provide parties with a statutory entitlement to adjudication to resolve payment disputes. Its intent is to encourage prompt and fair payments in our industry.
At Quigg Golden, we are involved in adjudication under the Act on a regular basis both as a party representative for referring and responding parties, as well as in the role of an adjudicator. We have conducted over 1000 Adjudications across multiple jurisdictions ranging from the small (€20,000) to the large (€120 million) and are responsible for securing around €0.5 Billion worth of successful outcomes for our clients over the years. We currently have four acting adjudicators on our staff (Edward Quigg, James Golden, Claire McCarry and Dermot Durack), this allows us to adopt a holistic approach using our experience from all three sides of an adjudication process to maintain a best practice service.
If you are interested in learning more about Quigg Golden’s adjudication process and would like to speak to an adjudication expert in Ireland or the UK, then please get in touch here.
Let’s look into what this year’s report contained along with the key message.
This Years Report
This year’s Report covered the period of July 2023 to July 2024 and the key takeaways from it are set out below:
The Message
The message from this year’s report is clear, adjudication is continuing to grow in Ireland. A key reason for this is its accessibility and speed. Disputes can be decided in as little as 28 days, ensuring that cash flow is maintained, and projects continue without prolonged financial strain. Subcontractors, who are often most vulnerable to payment delays, have increasingly turned to adjudication as a means to secure their outstanding payments.
Notably, simply the threat of adjudication prompted a settlement on 11 occasions highlighting the power of adjudication as a negotiation tool. Contrary to similar legislation in other jurisdictions, issuing a Notice of Intention to Adjudicate under the Act is not linked to the submission of a Referral Notice and so strict procedural timelines will not be enforced upon the Referring Party when issuing a Notice of Intention to Adjudicate. This in turn affords parties a greater opportunity to settle the dispute before substantive submissions are made.
However, the success of an adjudication claim or the success of defending an adjudication claim, relies on the proper preparation and presentation of your case. Engaging experienced legal representation is vital to ensure compliance with the Act and maximise the chances of success and prepare clear, persuasive submissions that meet the evidentiary and procedural requirements of adjudication. Without proper legal guidance, parties’ risk unfavourable outcomes, such as paying the adjudicator’s fees, significant financial penalties, or being forced into more expensive dispute resolution procedures such as litigation or arbitration if they want to dispute an unfavourable adjudication decision.
Ultimately, adjudication offers a powerful tool for fair and swift dispute resolution, but expert legal support is fast becoming essential for optimal results.
For expert legal advice of this nature, please contact Micheál O’Shea at: micheal.o’shea@h-f.co.uk
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