Unlocking Cash Flow: A Practical Guide to Adjudication in Ireland 

Unlocking Cash Flow: A Practical Guide to Adjudication in Ireland under the CCA 2013

In the fast-paced world of Irish construction and infrastructure, maintaining healthy cash flow is critical. Disputes over payment, however, are a persistent challenge, often leading to significant delays and financial strain, particularly for contractors and subcontractors.

 Recognising this, the Construction Contracts Act 2013 (CCA 2013) introduced statutory adjudication in Ireland – a powerful mechanism designed to resolve payment disputes swiftly and keep money flowing.

Since its effective commencement in July 2016, adjudication has become an increasingly vital part of the construction dispute resolution landscape in Ireland. Recent reports, such as the Eighth Annual Report from the Chairperson of the Construction Contracts Adjudication Panel (covering July 2023-July 2024), show a record number of adjudicator appointments, indicating growing reliance on this process across the sector.

But what exactly is statutory adjudication, how does the process work under the CCA 2013, and what practical steps must parties take to navigate it successfully? This guide offers contractors, subcontractors, employers, and consultants involved in Irish construction projects a practical overview.

What is Statutory Adjudication in Ireland?

At its core, statutory adjudication under the CCA 2013 is a dispute resolution process focused specifically on payment disputes arising under a construction contract. Key features include:

• Statutory Right: Any party to a qualifying construction contract (generally excluding contracts under €10,000 or for dwellings under 200 sq m) has the right to refer a payment dispute to adjudication at any time.This right cannot be contracted out of.

• Focus on Payment: The Act defines a "payment dispute" broadly.While typically involving interim or final account payments, recent adjudications have successfully tackled issues framed as payment disputes relating to retention, damages for wrongful termination, defect costs, and even COVID-19 related claims.

• Speed: The process is designed for rapid resolution.The adjudicator must typically reach a decision within 28 days of the dispute being referred, although this can be extended to 42 days with the referring party's consent, or longer if both parties agree.This underpins the "pay now, argue later" philosophy.

• Temporarily Binding Decision: The adjudicator's decision is binding on the parties unless and until the dispute is finally determined by agreement, arbitration, or court proceedings.Parties must comply with the decision promptly.

The Adjudication Process Step-by-Step under the CCA 2013

Navigating the adjudication process in Ireland requires strict adherence to timelines and procedures outlined in the Act and the associated Code of Practice:

1. Notice of Intention to Refer: The process begins when one party (the "Referring Party") serves a written 'Notice of Intention to Refer a Payment Dispute for Adjudication' on the other party (the "Responding Party"). Crucially, this notice must be served in the manner agreed in the construction contract (if specified) or otherwise by post or other effective means (Section 10, CCA 2013). Failure to comply with contractually agreed service methods can invalidate the entire process, as highlighted in recent High Court cases (e.g., Tenderbids v Electrical Waste Management [2025]).

2. Appointment of Adjudicator: Within 5 days of the Notice being served, the parties can agree on an adjudicator. If they cannot agree, either party can apply to the Chairperson of the Construction Contracts Adjudication Panel (appointed by the Minister) to nominate an adjudicator from the official panel.

3. Referral Notice: Within 7 days of the adjudicator's appointment, the Referring Party must submit the 'Referral Notice' to the adjudicator and copy it to the Responding Party. This document formally sets out the Referring Party's case, including details of the dispute, the relief sought, supporting arguments, evidence, and a copy of the Notice of Intention.

4. Response: The Responding Party typically has around 14 days (as per the adjudicator's timetable, often following the Code of Practice) to submit their 'Response' to the adjudicator, copied to the Referring Party. This should address the points raised in the Referral and include any counter-arguments or evidence.

5. Further Submissions (Optional): The adjudicator may allow further limited submissions, such as a Reply from the Referring Party (often around Day 21), or request specific information. They may also decide to hold a meeting or hearing, although many decisions are made based on documents alone.

6. Adjudicator's Decision: The adjudicator must issue their written decision within 28 days of receiving the Referral Notice, or the extended period agreed upon (commonly 42 days). The decision will state the amounts (if any) to be paid, by whom, and usually allocates responsibility for the adjudicator's fees and expenses.

Key Considerations for Referrers

If you are initiating adjudication:

• Valid Notice is Paramount: Double-check your contract for agreed notice service methods and comply strictly. An invalid notice means no jurisdiction.

• Prepare a Strong Referral: Clearly articulate your claim, provide robust supporting evidence (contemporaneous records are key), and link the evidence directly to your contractual entitlement. The tight timelines leave little room for error.

• Meet All Deadlines: Failure to submit the Referral Notice within 7 days of appointment can be fatal. Adhere strictly to all timetabled deadlines set by the adjudicator.

• Understand Costs: While you bear your own legal/representation costs, be prepared to potentially pay half (or all, depending on the decision) of the adjudicator's fees.

Key Considerations for Respondents

If you receive a Notice of Intention or Referral Notice:

• Act Immediately: The timelines are short. Seek expert advice promptly.

• Check Jurisdiction: Was the Notice of Intention served correctly according to the contract? Is the dispute genuinely a "payment dispute" under a "construction contract" covered by the Act? Jurisdictional challenges must be raised early.

• Formulate a Robust Response: Address every point in the Referral Notice. Provide counter-evidence and arguments clearly and concisely within the deadline. Silence can be detrimental.

• Consider Your Position: Is there merit in the claim? Is settlement a viable option?

The Adjudicator's Decision and Enforcement

The adjudicator's decision carries significant weight.

• Binding Effect: It creates an immediate obligation to pay any sums awarded. It remains binding unless overturned by a later court judgment, arbitral award, or settlement.

• Enforcement: If a party fails to comply, the successful party can apply to the High Court to enforce the decision "in the same manner as a judgment or order of that Court" (Section 6(11), CCA 2013).

• High Court Support: The Irish High Court has consistently shown strong support for enforcing adjudicator decisions, intervening only on narrow grounds like lack of jurisdiction (e.g., improper notice service) or a significant breach of fair procedures/natural justice. Errors of fact or law made within jurisdiction are generally not grounds to resist enforcement.

• Interest: Recent case law (Finnegan Contracts v Killycard Developments [2025]) indicates the High Court may enforce the interest calculation method specified by the adjudicator, rather than automatically defaulting to the statutory court rate, further respecting the adjudicator's decision-making within their remit.

Common Pitfalls to Avoid in Irish Adjudication

• Incorrect Notice Service: As seen in Tenderbids, failing to use the contractually agreed method for the Notice of Intention can nullify the process.

• Missing Deadlines: Strict adherence is crucial for Referrals, Responses, and any directions from the adjudicator.

• Insufficient Evidence: Claims or defences without clear, contemporaneous supporting evidence are unlikely to succeed.

• Ambiguity: Vague claims or poorly articulated arguments make the adjudicator's job difficult and weaken your position.

• Ignoring the Response: Responding parties must fully engage and address the points raised against them.

• Jurisdictional Errors: Attempting to refer disputes that aren't fundamentally about payment under a qualifying construction contract.

Expert Support is Key: Navigating Adjudication with Kiltoom Advisory

Statutory adjudication under the CCA 2013 offers a vital route to resolving payment disputes quickly in the Irish construction sector. However, its compressed timelines and strict procedural requirements demand careful preparation, strategic thinking, and a thorough understanding of the Act and relevant case law.

Kiltoom Advisory specialises in providing expert support to parties involved in construction adjudication in Ireland. Whether you are considering referring a dispute or need to respond to a notice, we offer:

• Strategic Advice: Assessing the merits of your case and advising on the best course of action.

• Notice Preparation & Review: Ensuring compliance with contractual and statutory requirements.

• Referral & Response Drafting: Compiling clear, persuasive, and well-evidenced submissions.

• Process Management: Guiding you through each stage and ensuring deadlines are met.

• Enforcement Advice: Assisting with the enforcement process if necessary.

Don't let payment disputes disrupt your business. Leverage the power of statutory adjudication effectively.

--> Contact Kiltoom Advisory today for expert guidance on navigating the Irish construction adjudication process under the CCA 2013.

Disclaimer: This article provides general information and does not constitute legal advice. You should seek specific professional advice tailored to your circumstances.