May 30, 2014 Articles

Construction Adjudication on the Rise Globally for Payment Disputes

The methods of resolving construction payment disputes seem as myriad as the disputes themselves

by John Madden

The methods of resolving construction payment disputes seem as myriad as the disputes themselves. In Ireland, the legislature last July enacted a law introducing a method of dispute resolution new to the Irish construction landscape—adjudication.

The motivation behind the Construction Contracts Act 2013 was to create payment protection for those who provide labor and materials for a project (as there is no mechanic’s lien in Ireland). The Act introduces two mechanisms to achieve this: (1) new 30-day “must make payment” provisions and (2) a right to refer payment disputes to rapid-fire adjudication.

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