The construction industry will benefit greatly from the introduction of the Construction Contracts Act, according to the Construction Industry Federation (CIF).

The Act is to come into force on 25 July.

The primary benefit of the legislation is that it regularises cash-flow for companies as it sets out time-frames for repayments.

CIF Director of Specialist Contracting, Sean Downey, said the Act will be of benefit to the entire supply chain, bringing more certainty and efficiency to dispute resolution and prompt payment.

-- Advertisement --

He said: "Companies can now plan and budget accordingly, allowing them to invest in future projects. The new rules will also reduce the amount of time and expense wasted on costly disputes. Days lost to disputes on projects between companies are too many and this has a negative impact on the reputation of the entire industry.

"Ultimately, this will all have a positive impact on competitiveness within the industry, job creation, and future planning of Ireland's infrastructural needs."

(CD/LM)