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Mr Brian Hayes TD, Minister of State at the Department of Public Expenditure and Reform today published the Regulatory Impact Analysis (RIA) of the Construction Contracts Bill. On welcoming the publication Minister Hayes stated “This Government is committed to bring forward legislation to protect small building subcontractors that have been denied payments from bigger companies. The completion of the RIA is a very important step in developing a robust piece of legislation to deal with the issue of delayed or non payment in the construction sector. In this regard, I wish to thank Senator Feargal Quinn for his assistance during the consultation process as it provided valuable input into the RIA. In line with the Programme for Government commitment we are publishing the Regulatory Impact Assessment (RIA) to inform debate and provide details of the analysis undertaken of the regulatory issues relating to the Bill.”

The Regulatory Impact Analysis examined issues relating to payment practices in the construction sector and assessed the need for legislative intervention. It found that legislation is needed to improve payment practices and to allow swift resolution of payment disputes by way of adjudication, allowing projects to be completed without wasting time and money in litigation.

In addition, the RIA examined the main proposals to amend the legislation that were raised during the Seanad debate and subsequent consultation on the Bill. It found that there were merits to considering amending the Bill in order to include lower value contracts and in the event that there is a payment dispute to make the adjudicators award binding. It also found that these amendments should be formulated in such a manner that would protect the taxpayer.

The Minister added “Senator Quinn and I will continue our collaborative approach; we will reflect on the findings of the RIA and incorporate them in the proposed legislation accordingly. It is essential that the solution needs to be balanced so as to avoid imposing regulatory or cost burdens on parties in dispute, the State or others. This legislation is a priority issue for the Government and it is our intention that the new law be enacted as quickly as possible.”