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Construction Contracts Bill will ease burden on non-payment on subcontractors – Comiskey

25th July 2013 - Senator Michael Comiskey

Fine Gael Sligo Leitrim senator Michael Comiskey today (Thursday) welcomed the passing of the Construction Contracts’ Bill which delivers on the Programme for Government commitment to introduce new legislation to protect small building subcontractors who have been denied payments from bigger companies.

“This is a very important piece of legislation as far too many sub-contractors have gone out of business or have had to let staff go, as a result of non-payment.   This legislation will ease the burden upon smaller subcontractors many of whom have suffered when larger companies have withheld payment without cause.  

“The Bill aims to improve the process of payments within the construction industry and seeks to remove the possibility of payments being withheld for extended periods of time by requiring notice to be given of any intention to withhold payment.  

“It will ensure that subcontractors have greater clarity on when and how much they will be paid.   Additional rights will allow subcontractors to suspend work in circumstances where they have not been paid for work already completed.  

“The scope of the legislation is wide as it will apply to contracts which are written or oral or partially written and partially oral.

“In instances where disputes arise, the Bill introduces a speedy and inexpensive mechanism of adjudication.  

“I would like to pay tribute to Senator Fergal Quinn who firstly introduced the Bill to the Seanad, but who quickly gained cross party support, and to Brian Hayes TD Minister of State at the Department of Public Expenditure and Reform who assisted greatly in advancing the Bill.”