The RIAI Construction Contract 2025: Key Issues for Contractors and Subcontractors

In Q4 of 2025, the Royal Institute of Architects of Ireland (“RIAI”) released its new standard form of contract; the RIAI Construction Contract 2025 (“RIAI Contract”). It is expected to become widely used across projects in Ireland from 2026 onwards.

Building upon the success of the 2017 forms, the 2025 update reflects current industry practice and aims to enhance clarity and contractual certainty for all stakeholders in private sector works. It introduces revised ‘Yellow’ and ‘Blue’ forms, updated Collateral Agreements, and new optional clauses that address amendments commonly made to previous forms.

In this article, we explore the key updates that Contractors and Subcontractors should be aware of.

Structural Changes

Part A is the Agreement, which is executed by the parties and includes basic information including the breakdown of the Contract Sum.

The Appendix has been replaced by Part B – Contract Particulars, which now sits towards the front of the contract for ease of reference. This section requires parties to provide specific details of the project and  facilitates the inclusion of optional sub-clauses to the agreement. The Contractor should carefully consider what sub-clauses have been selected as this will influence the risk profile of the contract –  for example, the contractor’s limit on liability, responsibility for existing structures, bond amount, risk relating to wage and price fluctuations and insurance options.

Part C contains the Conditions of Contract, which are now set out in an easily navigable format, with similar and related clauses sequenced together under 12 headings, replacing the previous 38.

Notable new and updated clauses

• Definitions and Interpretation section: A comprehensive section to provide for definitions and interpretation under the contract has been included in the Conditions of Contract aimed at increasing contractual certainty.
• Limitation on Contractor’s liability: Optional Sub-Clause 5.10 provides a limit on the aggregate monetary liability of a Contractor. The amount of the monetary limit under Sub-Clause 5.10 is to be filled out by the parties in the Contract Particulars. If the Sub-Clause is not opted out of and parties do not agree a figure for the limitation of liability, the default cap on a Contractor’s liability applies, which is equal to the Contract Sum.
• Time bars and notice provisions for Contractor’s claims: Sub-Clause 6.11 introduces specific timeframes for Contractors requesting extensions of time and additions to the Contract Sum. Under Sub-Clause 6.11, Contractors must give notice to the Architect within 20 days of their actual or constructive knowledge of such an event. Contractors then will have a further 25 days to furnish the Architect with all relevant details, as set out in the Sub-Clause.
• Selected Sub-Contractors: Where the Contract Documents provide for a specialist Sub-Contractor to be engaged at the direction of the Employer, Sub-Clause 3.1 provides that these Selected Sub-Contractors are to be treated as domestic Sub-Contractors and the Employer shall not be liable to/for the Selected Sub-Contractor. The RIAI’s Guidance Note on the 2025 forms advise that any tender process for selected Sub-Contractors should be completed well in advance of the main contract tender and should provide requisite information for main Contractors to properly complete their tender submissions.
• Contractor’s design: Sub-Clause 2.1.1 (c) recognises the common occurrence in private works whereby the Contractor is responsible for elements of a project’s design. Where the Contractor is responsible for elements of design, the Sub-Clause requires that a Contractor’s Design is carried out with the reasonable skill, care and due diligence that would be expected of a Contractor/Sub-Contractor having the specific qualifications and experience to provide such design would be expected to have. The Contract Particulars require parties to tick a box where a Schedule of Contractor’s Design is included in the Contract Documents.
• Performance bond: Optional Sub-Clause 7.2 requires parties to select whether a performance bond is required for the works. It should be noted that where no selection is made, a performance bond will be required by default to the amount of 12.5% of the Contract Sum.
• Dispute resolution and avoidance: Negotiation is the preferred method of dispute resolution and avoidance. Sub-Clause 12.2 gives parties the right to refer disputes to Conciliation and sets out broadly the process to be followed under Conciliation. Optional Sub-Clause 12.3 gives the parties the right to refer disputes to Arbitration, however, the arbitration clause may be opted out of where parties so elect in the Particulars. Sub-Clause 12.4 mentions statutory Adjudication under the Construction Contracts Act 2013 (for more information on statutory adjudication in Ireland, see linked articles).

Key takeaways

If used in its intended form, the updated RIAI Contract should prove to increase contract clarity for parties to private works contracts. The simplified structure and updated clauses seek to reflect the needs of the industry and should operate to reduce the necessity for amendments, and in turn translate to greater efficiency and easier contract administration in private works.

It will be for Employers and their advisors to resist heavily amending the new standard form. Previously, schedules of amendments running to fifty pages or more have been appended to the standard form, proving detrimental to Employers and Contractors. This has only resulted in a lack of clarity and made contract administration cumbersome. It is for Employers to strike the right balance with this and the contract’s risk profile, which will help Contractor’s deliver projects on time, on budget and to the relevant standard. Striking the right balance is key.

If you require tailored advice in relation to the RIAI Construction Contract 2025 or would like to discuss any of the points raised in this article, please contact Killian Dorney or your usual Beale & Co contact.