The COVID-19 pandemic has had a significant impact on the Irish construction market with two periods of government-ordered site closures for all “substantial” but limited works: the first period from 28 March 2020 to 18 May 2020 and the second period from 8 January 2021 to 4 May 2021 (although there have been some earlier reopenings of some elements, construction of houses). The main remedy is damages; however, other remedies may arise from the express terms of the contract or the common law, including termination. It is common for certain damages resulting from a breach to be expressly excluded or limited. Renewal mechanisms are included to extend the completion time when events occur for which the contractor is not responsible. Delays for which the contractor is liable are usually associated with lump sum damages, which are usually contractually determined at a fixed rate per day or per week. In Ireland, any amount to be paid as lump sum compensation must be a true estimate of the damage that the innocent party may suffer in the event of delay. If the construction contract contains exclusions and limitations of liability for these related persons, the contractor may attempt to enforce them against the employer. It would not be open to the related person to do so, as he is not a contracting party. A construction contract may be partially terminated provided that it contains a survival provision specifying which specific clauses remain enforceable. Often, the right of termination is expressed as the right to terminate the contractor`s employment relationship and not as the termination of the underlying contract. The courts recognize an implied clause in construction contracts that neither party will prevent the other from fulfilling its contractual obligations, and a contractor can therefore use that implied clause to create a claim for disruption, which is essentially a breach of contract claim, and the remedy is compensation for the loss suffered and the costs incurred.

Not by right. It depends on the terms of the contract. If it is true that the law of another jurisdiction is applicable to the situation, then the corresponding law should be examined to determine the rights of the subcontractor. Arbitration plays an important role in Irish construction contracts as a forum for final dispute resolution. The second period of closures has made it difficult to predict the final impact of COVID-19. There is no doubt that COVID-19-related applications will continue to be filtered through projects in the coming months. The magnitude of these claims will largely depend on the start of construction and the nature of the project – the projects that covered both closures will be the most affected. In addition to claims that cover the actual closure period, it is also necessary to take into account the delays caused by compliance with new work practices. As things become more contentious, there is a fear that the bankruptcy of entrepreneurs will increase. If there is a dispute related to the work performed by a contractor, the employer is usually initially directed against the contractor, as there is no contractual relationship between the employer and the subcontractor. If the contract between the employer and the contractor contains a binding arbitration agreement, the employer may bind the contractor to that agreement, unless the contractor agrees to negotiate the matter in court. In such cases, the employer may initiate arbitration proceedings against the contractor, especially since the contractor is generally liable for the acts or omissions of its subcontractors (there may be a limited division in terms of planning by the “named” subcontractors, although this categorization is becoming increasingly rare).

Parties to a construction contract are generally not subject to any restrictions or rules regarding the choice of law (provided that the regulatory requirements of the local jurisdiction are always applied and complied with). It is not possible to withdraw from the 2013 Construction Contracts Act. The essential requirements for a construction contract are: compliance, consideration, safety, intent, creating legal relationships and capacity. Although the permits required for a construction project depend on the nature and scope of the project (e.g., B waste permits, environmental permits, etc.), the following permits/certificates are generally required. It is customary to provide for retention in Irish construction contracts. The deduction may vary depending on the type of work, but generally between 3 and 5% of payments are withheld during the work. It is customary for half of the retention allowances to be reimbursed to the contractor at the end of the practice, the rest at the end of the liability period for default (usually 12 to 18 months after practical completion). The total value of the holdback can be returned upon effective expiry if the contractor enters into a retention guarantee. Although a deductible is provided for in the RIAI standard contract form, it is not common in the market. In the case of both Irish public works contracts and the RIAI form of contract, a claim based on weather or soil conditions generally gives rise to an extension of the time limit, but not to financial compensation. After practical completion, the contractor usually has to return to work and “fix” any defects that occur during a certain period of time, usually 12-18 months.

.