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ARTICLE · 03 APRIL 2023

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Liability Caps Announced For Public Sector Contracts In Ireland

Arthur Cox
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The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, has announced that liability caps will be included in public works contracts and in the standard conditions of engagement...

IrelandReal Estate and Construction
Arthur Cox
Arthur Cox
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The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, has announced that liability caps will be included in public works contracts and in the standard conditions of engagement for consultants, which are used across various types of public sector construction projects. As opposed to other standard form construction contracts such as RIAI or FIDIC, the public works contract is generally not open to negotiation by contractors, meaning contractors are restricted in managing their potential financial exposure under these forms of contract.

The liability caps have been implemented with a view to reducing barriers to delivering infrastructure and construction projects under the National Development Plan (which aims to invest €165 billion in infrastructure including transport, broadband and housing).

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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