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You are here: BAILII >> Databases >> Irish Legislation >> Construction Contracts Act 2013 URL: https://www.bailii.org/ie/legis/num_act/2013/0034.html |
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Number 34 of 2013 |
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ARRANGEMENT OF SECTIONS |
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Section |
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2. |
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3. Payments under ![]() |
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7. Right to suspend work for failure to comply with adjudicator’s decision. |
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Provisions to Apply to Matters Regarding Payments |
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Number 34 of 2013 |
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AN |
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[29th July, 2013] |
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BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: |
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Interpretation. |
1.— (1) In this ![]() |
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“ ![]() |
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(a) carrying out |
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(b) arranging for the carrying out of |
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(c) providing the executing party’s own labour, or the labour of others, for the carrying out of |
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“ |
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(a) |
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(b) |
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(c) installation in any building or structure of fittings forming part of the land, including (without prejudice to the foregoing) systems of heating, lighting, air-conditioning, thermal insulation, ventilation, power supply, drainage, sanitation, water supply or fire protection, or security or communications systems; |
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(d) external or internal cleaning of buildings and structures, so far as carried out in the course of their |
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(e) operations which form an integral part of, or are preparatory to, or are for rendering complete, such operations as are previously described in this subsection, including site clearance, earth-moving, excavation, tunnelling andboring, laying of foundations, erection, maintenance or dismantling of scaffolding, site restoration, landscaping and the provision of roadways and other access works and traffic management; |
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(f) painting or decorating the internal or external surfaces of any building or structure; |
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(g) making, installing or repairing sculptures, murals and other artistic works that are attached to real property; |
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“executing party”, in relation to a |
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(a) where the parties to the |
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(b) where the parties to the ![]() |
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“main |
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“Minister” means the Minister for Public Expenditure and Reform; |
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“other party”, in relation to a |
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“payment claim” means a claim to be paid an amount under a ![]() |
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“payment claim date”, in relation to a |
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“payment claim notice” has the meaning assigned to it by section 4 ; |
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“payment dispute” has the meaning assigned to it by section 6 ; |
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“subcontract” means a |
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“subcontractor” means a person to whom the execution of work under a |
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“work”, in relation to a ![]() |
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(2) In this |
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(a) architectural, design, archaeological or surveying work, |
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(b) engineering or project management services, or |
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(c) advice on building, engineering, interior or exterior decoration or on the laying-out of landscape. |
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(3) Subject to subsection (4) references in this |
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(a) building or engineering components or equipment, |
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(b) materials, plant or machinery, or |
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(c) components for systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or for security or communications systems. |
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(4) In this |
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2.— (1) A ![]() |
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(a) if the value of the |
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(b) if— |
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(i) the |
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(ii) the dwelling has a floor area not greater than 200 square metres, and |
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(iii) one of the parties to the |
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(2) A ![]() |
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(3) A ![]() |
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(4) Where a ![]() |
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(5) This |
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(a) the law of the State is otherwise the applicable law in relation to the |
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(b) the parties to the |
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Payments under ![]() |
3.— (1) A |
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(a) the amount of each interim payment to be made under the |
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(b) the amount of the final payment to be made under the ![]() |
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or for an adequate mechanism for determining those amounts. |
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(2) A |
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(a) the payment claim date, or an adequate mechanism for determining the payment claim date, for each amount due under the |
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(b) the period between the payment claim date for each such amount and the date on which the amount is so due. |
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(3) The Schedule shall apply to a main |
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(4) The Schedule shall apply to a subcontract except to the extent that it makes provision which is more favourable to the executing party than that which would otherwise be made by the Schedule . |
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(5) Except after the occurrence of the circumstances specified in subsection (6), a provision in a ![]() |
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(6) The circumstances referred to in subsection (5) are: |
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(a) where the other person is a company other than an unregistered company— |
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(i) the commencement of its winding up pursuant to section 251 of the Companies |
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(ii) the presentation of a petition to wind it up pursuant to section 213 of the Companies |
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(iii) the appointment of a receiver in respect of any of its property or assets, or |
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(iv) the presentation of a petition for the appointment of an examiner under the Companies (Amendment) |
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(b) where the other person is an unregistered company, the commencement of its winding up pursuant to section 345 of the Companies |
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(c) where the other person is an individual or partnership, the making of an application for adjudication under the Bankruptcy |
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(d) the making of a winding up or similar order by a court in relation to the other person; |
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(e) the occurrence of any event corresponding to those specified in this subsection under the law of any state to which Council Regulation (EC) No. 1346/2000 of 29 May 2000 1 on insolvency proceedings applies. |
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Payment claim notices. |
4.— (1) This section applies where, not later than 5 days after the payment claim date, an executing party to a ![]() |
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(2) A payment claim notice is a notice specifying— |
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(a) the amount claimed (even if the amount is zero), |
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(b) the period, stage of work or |
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(c) the subject matter of the payment claim, and |
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(d) the basis of the calculation of the amount claimed. |
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(3) If the other party or specified person referred to in subsection (1) contests that the amount is due and payable, then the other party or specified person— |
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(a) shall deliver a response to the payment claim notice to the executing party, not later than 21 days after the payment claim date, specifying— |
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(i) the amount proposed to be paid, |
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(ii) the reason or reasons for the difference between the amount in the payment claim notice and the amount referred to in subparagraph (i), and |
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(iii) the basis on which the amount referred to in subparagraph (i) is calculated, |
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and |
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(b) if the matter has not been settled by the day on which the amount is due, shall pay the amount referred to in paragraph (a) to the executing party not later than on that day. |
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(4) Where a reason for the different amount in the response is attributable to a claim for loss or damage arising from an alleged breach of any |
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(a) when the loss was incurred or the damage occurred, or how the other claim arose, |
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(b) the particulars of the loss, damage or claim, and |
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(c) the portion of the difference that is attributable to each such particular. |
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(5) The rights and obligations conferred or imposed by this section are additional to any conferred or imposed by the terms of the ![]() |
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Right to suspend work for non-payment. |
5.— (1) Where any amount due under a |
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(2) Notice under this subsection shall specify the grounds on which it is intended to suspend work and shall be delivered to the other party— |
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(a) not earlier than the day after the day on which the amount concerned is due, and |
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(b) at least 7 days before the proposed suspension is to begin. |
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(3) Work may not be suspended under subsection (1)— |
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(a) after payment by the other party of the amount due, or |
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(b) after notice has been served by a party to the |
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(4) Where work is suspended under subsection (1) and the ability of the executing party to complete work within a |
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(5) Where work is suspended under subsection (1) and the ability of a subcontractor to complete work within a |
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(6) A period of suspension of work under subsection (1) shall also be disregarded for the purpose of computing the time taken to complete the work under another |
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(a) the |
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(b) the other |
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(c) the ability of the executing party under that other subcontract to complete work within a |
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(7) This section is without prejudice to the right of the other party to the |
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Right to refer payment disputes to adjudication. |
6.— (1) A party to a |
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(2) The party may exercise the right by serving on the other person who is party to the |
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(3) The parties may, within 5 days beginning with the day on which notice under subsection (2) is served, agree to appoint an adjudicator of their own choice or from the panel appointed by the Minister under section 8 . |
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(4) Failing agreement between the parties under subsection (3), the adjudicator shall be appointed by the chair of the panel selected by the Minister under section 8 . |
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(5) The party by whom the notice under subsection (2) was served— |
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(a) shall refer the payment dispute to the adjudicator within 7 days beginning with the day on which the appointment is made, and |
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(b) shall at the same time provide a copy of the referral and all accompanying documents to the person who is party to the ![]() |
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(6) The adjudicator shall reach a decision within 28 days beginning with the day on which the referral is made or such longer period as is agreed by the parties after the payment dispute has been referred. |
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(7) The adjudicator may extend the period of 28 days by up to 14 days, with the consent of the party by whom the payment dispute was referred. |
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(8) The adjudicator shall |
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(9) The adjudicator may take the initiative in ascertaining the facts and the law in relation to the payment dispute and may deal at the same time with several payment disputes arising under the same ![]() |
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(10) The decision of the adjudicator shall be binding until the payment dispute is finally settled by the parties or a different decision is reached on the reference of the payment dispute to arbitration or in proceedings initiated in a court in relation to the adjudicator’s decision. |
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(11) The decision of the adjudicator, if binding, shall be enforceable either by |
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(12) The decision of the adjudicator, if binding, shall, unless otherwise agreed by the parties, be treated as binding on them for all purposes and may accordingly be relied on by any of them, by way of defence, set-off or otherwise, in any legal proceedings. |
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(13) The adjudicator may correct his or her decision so as to remove a clerical or typographical error arising by accident or omission but may not reconsider or re-open any aspect of the decision. |
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(14) The adjudicator is not liable for anything done or omitted in the discharge or purported discharge of his or her functions as adjudicator unless the |
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(15) Each party shall bear his or her own legal and other costs incurred in connection with the adjudication. |
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(16) The parties shall pay the amount of the fees, costs and expenses of the adjudicator in accordance with the decision of the adjudicator. |
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(17) An adjudicator may resign at any time on giving notice in writing to the parties to the dispute and the parties shall be jointly and severally liable for the payment of the reasonable fees, costs and expenses incurred by the adjudicator up to the date of resignation. |
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(18) The parties to a dispute may at any time agree to revoke the appointment of the adjudicator and the parties shall be jointly and severally liable for the payment of the reasonable fees, costs and expenses incurred by the adjudicator up to the date of the revocation. |
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Right to suspend work for failure to comply with adjudicator’s decision. |
7.— (1) Where any amount due pursuant to the decision of the adjudicator is not paid in full before the end of the period of 7 days beginning with that on which the decision is made, the executing party may suspend work under the |
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(2) Notice under this subsection shall specify the grounds on which it is intended to suspend work and shall be delivered to the other party not later than 7 days before the proposed suspension is to begin. |
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(3) Work may not be suspended under subsection (1)— |
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(a) after payment by the other party of the amount due, or |
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(b) after the decision of the adjudicator is referred to arbitration or proceedings are otherwise initiated in relation to the decision. |
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(4) Where work is suspended under subsection (1) and the ability of the executing party or a subcontractor to complete work within a |
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(5) A period of suspension of work under subsection (1) shall also be disregarded for the purpose of computing the time taken to complete the work under another |
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(a) the |
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(b) the other |
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(c) the ability of the executing party under that other subcontract to complete work within a |
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Selection of panel of adjudicators. |
8.— (1) The Minister shall from time to time select persons to be members of a panel (in this section referred to as the “panel”) to |
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(2) Persons selected under subsection (1) shall be members of the panel for a period of 5 years commencing on the date of selection and shall be eligible for reselection at the end of the period of 5 years. |
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(3) The Minister may, for good and sufficient reason, remove a member of the panel. |
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(4) A member of the panel may at any time resign by giving notice in writing to the Minister. |
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(5) In selecting persons to be members of the panel, the Minister shall have regard to their experience and expertise in dispute resolution procedures under |
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(6) The descriptions of persons referred to in subsection (5) are as follows: |
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(a) a registered professional as defined in section 2 of the Building Control |
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(b) a chartered member of the Institution of Engineers of Ireland; |
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(c) a barrister; |
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(d) a solicitor; |
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(e) a fellow of the Chartered Institute of Arbitrators; |
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(f) a person with a qualification equivalent to any of those specified in paragraphs (a) to (e) duly obtained in any other Member State of the European Union. |
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Code of practice for adjudication. |
9.— The Minister may prepare and publish a code of practice governing the conduct of adjudications under section 6 . |
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Delivery of notices, etc. |
10.— (1) The parties to a |
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(2) If or to the extent that there is no such agreement, a notice may be delivered by post or by any other effective means. |
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(3) Where under this |
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Expenses. |
11.— The expenses incurred by the Minister in the administration of this |
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Short title and commencement. |
12.— (1) This |
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(2) This |
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SCHEDULE Provisions to Apply to Matters Regarding Payments |
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1. The payment claim dates under a |
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(a) 30 days after the commencement date of the ![]() |
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(b) 30 days after the date referred to in clause (a) and every 30 days thereafter up to the date of substantial completion; |
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(c) 30 days after the date of final completion. |
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2. Where a ![]() |
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3. The date on which payment is due in relation to an amount claimed under a |
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4. The amount of an interim payment under a |
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(a) the aggregate of the gross value (determined in accordance with the |
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(b) the aggregate amount of interim payments that have already been made at that payment claim date. |
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5. The aggregate of payments made under a |
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(a) the amount provided for in the |
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(b) amounts provided for by any amendments to that |
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