Local Fine Gael TD and junior minister in the Department of Agriculture, Food and the Marine, Tom Hayes, has welcomed the passing of the Construction Contracts Bill which introduces new legislation to protect small building subcontractors denied payments from bigger companies.
The Bill will provide statutory arrangements for interim or staged payments to be made, reducing the sub-contractor’s exposure to non-payment. The Bill also introduces a new mechanism for the swift resolution of payment disputes through a new process of adjudication. This process will deal quickly with disputes about payments and will result in a binding decision, under which payment, if any, must be made to the party named in the decision. Furthermore, the threshold for a case to qualify for the adjudication process has been reduced to €10,000. It was previously €50,000 for public contracts and €200,000 for private sector contracts.
“I know this Bill will be welcomed by sub-contractors around the country and their staff who for too long have been vulnerable to non-payment for their work. We know that far too many sub-contractors have gone out of business as a result of non-payment by clients,” said Minister Hayes who praised Senator Feargal Quinn who initiated the Private Member’s Bill on the issue.