Senator calls for construction industry law to be implemented

Legislation to ensure prompt payments to subcontractors in the construction industry has still not been implemented, two years after it was signed into law, the Seanad has heard.

Independent Gerard Craughwell said the Construction Contracts Act, introduced by Senator Feargal Quinn five years ago, provided for enforceable staged payments to subcontractors.

He asked why the Government had “delayed for so long in removing the administrative impediments to the Act’s commencement”.

Mr Craughwell said the process could have been initiated immediately after the legislation was passed.

A chairman, Dr Nael Bunni, had been appointed of the constructions contracts adjudication panel, which will mediate on disputed contracts. Mr Craughwell asked when the remaining members of the panel would be in place.

“That it took two full years to appoint a chairman and a panel, and to draft a code of practice, is nothing short of scandalous,” he said.

“It is particularly scandalous in circumstances where thousands of subcontractors have gone out of business in the wake of the worst downturn in the construction sector that this country has ever seen.”

He said it was beyond belief that the steps needed had still not been taken to protect small subcontractors, some of whom had five, six, 10 or up to 30 people working for them.

Minister of State for Jobs Ged Nash said subcontractors would be "in a position to benefit from the legislation very soon". He added: "I am taking all steps necessary to bring about the implementation of the Act as soon as possible following the Government decision late last year to assign responsibility for the Act to me as Minister of State."