Sinn Féin welcomes publication of Regulatory Impact Analysis of Construction Contracts Bill

Dublin South West Sinn Féin TD Seán Crowe has welcomed the publication of the Regulatory Impact Analysis of the Construction Contracts Bill.

However, Deputy Crowe said the Minister of State, Brian Hayes, has questions to answer on the reports failure to deal with the Suspension Limit as set out in the legislation.

Deputy Crowe said:

“During a meeting with the Minister in June year Sinn Féin representatives accompanied various stakeholders from the industry to a meeting with the Minister where we outlined a number of amendments which we believed needed to be made to the Construction Contracts Bill. Small and medium size contractors have been hit hard by bigger construction firms who have refused to pay for sub-contracting work. Many have been forced into receivership and are others are struggling because of they have not been paid and this is impacting on their cash flow.

“The publication today of the Regulatory Impact Analysis of the Construction Contracts Bill, proposes to remove the minimum monetary thresholds for both the private and public sector. It also recommends making adjudications binding regardless of whether the dispute goes to arbitration or not. Extending the scope of the Bill to include goods and services, particularly those manufactured for a project, is another positive development.

“However the Regulatory Impact Analysis does not deal with concerns raised on the Suspension Limit as currently set out in the legislation. The right to suspend work for non-payment cannot be time restricted and a limit of two weeks will not act as a sufficient deterrent for rogue employers. Sinn Féin has written to Minister of State Brian Hayes asking him to clarify the Government’s position on this matter.”