Construction Law Update: Amendments To The Irish Public Works Contracts

The Irish Government recently published the amendments to the Irish Public Works Contracts.  The amendments arise out of the Review of the Public Works Contracts conducted over the last 18 months. The amended forms of contract must, with limited exceptions, be used from 4 April 2016. We discuss the key changes involved.

The Irish Public Works Contracts were introduced in 2007. The aim was to reduce cost over runs and introduce price certainty. The idea was that risk would be transferred to the Contractor who would be paid a premium for assuming the extra risk. The introduction of the new contracts coincided with one of the worst recessions ever experienced in Ireland. Contractors competed for projects on price but found themselves assuming all the risk without adequate compensation.  Inevitably claims escalated as contractors tried to recoup their losses. The inflexibility of the contracts together with the confidential dispute resolution procedure made it very