ADR reforms in Public Works Contracts strengthen infrastructure delivery in Ireland
July 2026On 16 June 2026, the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation announced important amendments to Alternative Dispute Resolution (ADR) provisions under Public Works Contracts (PWC). [1]
Minister Jack Chambers told the Oireachtas that the reforms aim to improve efficiency, reduce disputes and lower costs in supporting the better delivery of public infrastructure.[2]
The key changes include:
- Restoration of ‘costs follow the event’ principle
The Form of Tender and Schedule documents (FTS1 – FTS 5) have been updated to remove a pre-agreement regarding the apportionment of costs in Arbitration which was favourable to public Employers and discouraged Contractors from referring disputes to arbitration.
Under previous versions of the Form of Tender and Schedule, the pre-agreement regarding Arbitral costs provided that where a sealed offer had been made by the Employer and a subsequent Arbitrator’s award was equal to or less than the sealed offer, the Contractor was liable for the costs of both parties in Arbitration. In circumstances where the Employer had not made a sealed offer, or where the sealed offer was lower than the Arbitral award, the FTS provided that both parties agree to pay their own costs.
The pre-agreement provided that in the best-case scenario for a Contractor, they were obliged to foot the bill for their own costs, even in circumstances where the Arbitral award went in their favour.
The provision was out of step with the long-established principle in Irish law that costs follow the event, i.e. that the losing party in a dispute should pay the legal fees and expenses of the winning party. The pre-agreement regarding costs in Arbitration was a barrier to Contractors pursuing a valid claim under the PWC forms and effectively acted as a financial penalty for doing so.
Contractors and all stakeholders in public construction projects should welcome this amendment as providing fairer outcomes for dealing with the costs of Arbitration under public contracts.
- Reciprocal Co-operation between Employers and Contractors
The PWC forms (PW-CF1 to PW-CF5) have been updated to provide for reciprocal co-operation between Employers and Contractors, in an effort to improve project delivery and avoid disputes.
The amended forms provide that the Employer and the Contractor shall support reciprocal co-operation under sub-clause 4.1., including by requesting clarifications, consultations and the exchange of information and expertise, which may be done on a without prejudice basis.
Sub-clause 4.1.5 provides for ‘Co-operation Meetings’, which can be raised upon the identification of a particular issue that may benefit from such a meeting, and which must be attended by senior personnel of both parties. A Co-operation Meeting is defined as ‘a without prejudice meeting to facilitate early engagement and dispute avoidance convened under sub-clause 4.1.5 between the Employer and the Contractor [and the Standing Conciliator where appointed].’
The emphasis on collaboration and dispute avoidance under the amended PWC forms should operate to improve contract delivery through communication and avoid delays caused by disputes where possible.
- Increased role of the Standing Conciliator
The role of the Standing Conciliator is to resolve disagreements before they crystallise into formal disputes. A Standing Conciliator must be appointed to public construction contracts exceeding €10 million in value and may be appointed to contracts valued below that threshold.
The updated PWC forms now clarify that the Standing Conciliator shall chair a Project Board and also increase the role of the Standing Conciliator to include facilitating Co-Operation Meetings under sub-clause 4.1.5.
The increased remit of Standing Conciliators on high-value projects will be beneficial to all stakeholders in public works contracts and should result in efficiencies for infrastructure delivery.
- Fast-track Arbitration
The Capital Works Management Framework (CWMF) Arbitration Rules for use with Public Works and Construction Services Contracts (AR1) have been updated to provide that Arbitral proceedings under PWC forms (PW-CF1 to PW-CF5) must be conducted via fast-track proceedings, unless the parties agree otherwise. The fast-track procedure provides that an Arbitrator’s award must be issued within 100 days of the formation of the Arbitral tribunal. This development should result in more efficient progress of disputes and should help dispense with costly delays.
However, parties must have agreed at the outset of the project that the CWMF Arbitration Rules will apply, otherwise the International Chamber of Commerce Arbitration rules apply by default. This is important because the separate rules contain differing timelines and procedural mechanisms that can significantly impact the efficiency, cost, and management of disputes.
Conclusion
The reforms to ADR provisions under Public Works Contracts will be welcomed by all stakeholders in the construction industry and demonstrate the government’s commitment to promoting efficiency and fairness in all areas of infrastructure delivery.
The team at Beale & Co advise on all stages of construction projects, from procurement through to completion, on contract drafting, contract administration, dispute avoidance and in formal dispute processes. Our Dublin office would be delighted to assist you with any query you may have.
If you would like to discuss anything addressed in this article in the meantime, please contact Killian Dorney.
[1] CWMF.gov.ie, ‘Alternative Dispute Resolution Reforms’, 16 June 2026
[2] Chambers, J, (2026), Dáil Debates (unrevised), [online], 9 June 2026, Available at: Departmental Expenditure – Tuesday, 9 Jun 2026 – Parliamentary Questions (34th Dáil) – Houses of the Oireachtas
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