Ninth Annual Report of the implementation of the Construction Contracts Act 2013

That time of the year again and the later than usual report in respect of the ninth year of adjudication in Ireland has arrived (The Construction Contracts Act 2013 came into force for any construction contract entered into after the 25th of July 2016, therefore this date is the end of each yearly cycle) in respect to the year that ended in July 2025. The Department of Enterprise on behalf of the Chair of the Ministers panel of Adjudicators, Mr. Bernard Gogarty, has issued the yearly report in respect to the activity through the panel in the year to end July. The report outlines some detail in respect to the use of adjudication through the panel, and it also includes some information, where adjudicators chose to submit statistical returns in respect to any adjudications where the Ministers Panel were not the appointing body. It can therefore only give a snapshot in respect to where adjudication usage actual sits. One item that continues to jump from the report is the fact that despite the requirement to return the statistical data sheets to the department, it is clear from the numbers that some Adjudicators are not submitting those returns. So, what does it tell us...
 
Use of Adjudication

The latest report highlights a slight decrease on the previous year (the year 8 report detailed the highest case numbers since the legislation was introduced) in the in the use of Adjudication in Ireland with a 16% decrease year on year in the number of applications to the panel. From a low base of one application in Year 1, to 11 in Year two, Year three had 39, Year 4 had 54, year 5 had 51, year 6 had 81, year 7 had 61, year 8 had 101 and now year 9 sees a slight reduction down to 85 applications to the panel for appointment of an adjudicator. A similar 15% decrease was also recorded in actual appointments year on year from 0 in year 1, to 9 in year 2, to 32 in year 3, 46 in year 4, a drop to 37 in year 5, increase to 71 in year 6, a decrease to 57 in year 7, a jump to 93 in year 8 and now a small fall back to 79 in Year 9. There were two non-compliant applications.
Adjudicators
Quantity Surveyors continue to lead at the top of the yearly leaderboard as the profession with the highest number of appointments with 37% (22) of all appointments with Architects retaking second place with 24% (14). There is a gap back to Fellows of the CIArb at 15% (9), Solicitors closely behind at 12% (7) and Barristers with 10% (6) with Engineers completing the list of professions at 2% (1). Except for the Engineering profession, the breakdown would appear to again show a spread of appointments across the professions in the year to July 2025.
The most common rate charged by adjudicators is now stated as set within a broad band width from €251 to €350 per hour, in a similar fashion to the previous report. The highest rate charged is recorded in the €500 plus per hour bracket where five cases are reported with one case also appearing in the €201-250 per hour bracket.
Parties in Dispute
It is no surprise that Subcontractor’s referring against the Main Contractor continues to lead the way in the number of disputes and this relationship was responsible for 44% of the cases on the panel. Main Contractors are also continuing to use the adjudication process as a resolution tool with 22% of cases referred by them against non-Public Body Employers and a further 8% between them and Public Body Employers. There is a record of only three cases (5%) been referred by Main Contractors against Subcontractors through the panel this year. Employers referring against Main Contractors were responsible for just two cases in year 9 and we continue to see the use by professional consultants that started in year 5, where a further seven cases were referred against their clients. There continues to be no reference to a Public Body having used adjudication against a contractor to date (although I am aware that we will see this change in year 10). In a confusing inclusion in the report, given the parties would not be in contract, we have four cases (7%) taken between a Subcontractor and an Employer.
In respect to the outcomes of decisions, the report includes for the first time, some further detail on success and a wider breakdown to include split decisions. The Referring Party were successful in 70% of reported cases with the respondent successful in 11% of cases and 19% of cases had a split decision issued. 
Location of Dispute


Dublin continues to have the largest number of disputes with 53% of cases located in the Capital. The only other county in double digits is Cork where 10% of cases are located. Galway leads the west with 7% and Cavan leads Ulster with 2%, with no other cases in the province. After the ninth year, Westmeath continues to be the only county that is yet to record a case on the system (a record that I know ended in year 10).
 
Values and Costs


In year 9, following on from a comparable situation in years 4 to 8 inclusive a value between €100-500k (13 cases) is the most common value awarded. The highest value recorded was in four cases where the award was between €1 million and €5 million.
One area of substantial reduction is in respect to the overall fees with no fee reported above €40,000 in the year and the highest number of cases resulting in a fee of less that year and the highest number of cases resulting in a fee of less than 10,000.
 
Conclusion
In a year which was following the record-breaking year 8 report, the numbers are still seeking growth and continued use of Adjudication in Ireland. Year 9 brings up a total of 484 applications through the panel since inception, which resulted in 424 appointments. In the nine years the value in disputes resolved through the process now stands at over €319 million. Adjudication is clearly now seen as a real option for the resolution of disputes in Ireland and it is highly likely with current market conditions that the numbers will continue at a similar level into year 10.
For a full copy of the annual report including copies of the previous year’s report please follow the link here to the Construction Contracts Adjudication Services Website.
 
Keith Kelliher is an Accredited Adjudicator, who has represented Main Contractors and Sub-Contractors in payment disputes for over 27 years in the Irish construction industry. Keith has represented numerous parties in the Adjudication process to date in Ireland from referral through to a decision. Contact Keith at [email protected] for any assistance with the requirements of the ACT. This article is a commentary piece and does not constitute nor should it be relied upon as legal or professional advice.