ADJUDICATION
In March, we looked at Tenderbids Ltd t/a Bastion v Electrical Waste Management Ltd [2025] IEHC 139, in which the High Court dismissed an application to enforce an adjudicator's decision, based on a finding that the payment dispute was not validly referred for adjudication, such that the adjudicator had no jurisdiction to hear the dispute. We looked at this judgment in our briefing: Construction Law Update: Court declines to enforce Adjudicator's Decision.
A second judgment now addresses the issue of costs ([2025] IEHC 339). Having been successful in the proceedings, the respondent was entitled to recover its costs against the applicant, subject to a modification: the respondent was not entitled to recover costs relating to listings of the case on dates in 2024, reflecting possible inconvenience caused to the applicant by the respondent's delay.
The Court also addressed the applicant's argument that the respondent's jurisdictional objection (that the payment dispute was not validly referred for adjudication) should have been raised earlier. The respondent had not been required to engage with the adjudication process to raise the jurisdictional ground: the entire adjudication was a nullity and the respondent was not obliged to engage with a nullity. Neither had the respondent been required to raise the jurisdictional point as a preliminary issue in the enforcement proceedings: that would have been contrary to the objective of expedition underlying the Construction Contracts Act 2013. Further, the jurisdictional point was the exclusive ground on which the respondent sought to defend the proceedings; it was not a case where failure to pursue a knock-out point as a preliminary issue resulted in parties having to incur otherwise avoidable costs of a full trial where multiple issues had to be litigated.
SUSTAINABILITY
Energy Performance of Buildings Directive: National Building Renovation Plans
Tools to support EU countries to prepare National Building Renovation Plans were published by the European Commission. The documents consist of an annotated template and a spreadsheet template for data collection. Under Article 3 of the Recast Energy Performance of Buildings Directive, EU countries are required to establish and submit the first draft of their NBRPs by the end of 2025.
Energy Performance of Buildings Directive
Under Article 7 of the Recast Energy Performance of Buildings Directive, Member States must ensure that life-cycle Global Warming Potential ("GWP") is calculated in accordance with Annex III and disclosed in the energy performance certificate of the building: (a) from 1 January 2028, for all new buildings with a useful floor area larger than 1 000 m2; (b) from 1 January 2030, for all new buildings.
An initiative of the Royal Institute of the Architects of Ireland and the Irish Green Building Council (IGBC), 'Design for Performance', is intended to introduce a performance-based framework for building design and operation to support implementation of whole-life carbon limits (another term for GWP). It is intended to introduce adaptable tracking templates for monitoring whole-life carbon, energy consumption, water usage and indoor environmental quality.
The Sustainable Energy Authority of Ireland has also gathered feedback on the proposed life-cycle GWP calculation methodology for assessing global warming potential of buildings along their entire life-cycle. The SEAI indicates the methodology aligns with the provisions of the Recast Directive and the guidance being developed on the life-cycle GWP of new buildings.
The European Commission endorsed a positive preliminary assessment of Ireland's second payment request for €115.5 million under the Recovery and Resilience Facility. Planned investment includes €199.5 million in energy efficiency in public buildings.
Home Performance Index
The SEAI recently outlined the Taxonomy-aligned Home Performance Index Certification it offers. It is also developing a simplified certification system aimed at SME home builders.
Circular Economy
The Department of Climate, Energy and Employment announced €27 million in funding from the Circular Economy Fund for initiatives to support Ireland's transition to a circular economy. This annual allocation is intended to empower organisations to implement innovative projects that reduce waste, extend the life of materials, and promote sustainable resource use.
Biodiversity
The Irish Green Building Council launched Irish Case Studies to mainstream biodiversity in the built environment.
SUPPLY CHAINS
Deforestation Regulation
The EU Deforestation Regulation applies to certain commodities, including wood, and prohibits them from being imported into, made available in, or exported from the EU unless they are "deforestation-free" and produced in accordance with the relevant legislation of the country of production. We last looked at the Regulation in our briefing: EU Deforestation Regulation: Proposed Delay.
The European Commission has published updated guidance and FAQs on the Regulation, which will apply from 30 December 2025 for large in-scope companies (and from 30 June 2026 for SMEs). The guidance includes measures to simplify compliance with the Regulation.
The European Commission has also made an Implementing Regulation, classifying countries as low, standard, or high risk based on the likelihood of relevant commodities/products failing to meet the "deforestation-free" requirement. 140 countries are "low risk", including EU Member States, UK, US, Canada, China, Japan, Australia and South Africa. Simplified due diligence requirements will apply for low-risk countries. Belarus, Myanmar, North Korea, and Russia are "high risk". Remaining countries, including Mexico, Argentina, Brazil, Columbia, Côte d'Ivoire, Ethiopia, Indonesia, Malaysia, and Peru are classified as "standard risk".
PRIVATE RENTAL SECTOR
Rent Reform
Legislation is being brought to Cabinet to extend Rent Pressure Zones to all areas of the country until 28 February 2026, ahead of the new rent controls coming in from 1 March 2026. Our insights post on private rental sector rent reform is available here: Government Announces Measures on PRS Rent Reform.
INFRASTRUCTURE
District Heating
The Department of Climate, Energy and the Environment is consulting until 31 July 2025 on the proposed Heat (Networks and Miscellaneous Provisions) Bill 2024, which is intended to introduce a regulatory framework for district heating in Ireland.
Consultation on Accelerating Infrastructure
The Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation is consulting until 4 July 2025 on infrastructure delivery with the aim of identifying key barriers. The Minister has launched an Accelerating Infrastructure Taskforce. The Department is also consulting until 26 June 2025 on review of the National Development Plan.
STANDARD FORM CONTRACTS
Capital Works Management Framework
Guidance Note 1.6 on procurement of Consultants and Guidance Note 1.7 on Standard Conditions of Engagement and Sample Schedules have been reviewed and consolidated into a single guidance note and associated appendices. The OGP indicates there is further comment on use of lump sum versus percentage fees, the new inflation adjustment mechanism, and a road map relating to procurement of consultancy services through the lifecycle of a project.
The OGP has also drawn attention to the rebasing by the CSO of indices used in the Capital Works Management Framework Price Variation Workbooks. It indicates that, when filling out the Price Variation Workbooks, contracting authorities must ensure that all of the CSO data they enter has the correct Base Year.
STATE AID
Affordable Housing
As detailed in our State aid section, the European Commission is seeking feedback until 31 July 2025 on a revision of the services of general economic interest State aid rules to address the issue of housing affordability. The revision aims to simplify and update the rules to address the need to incentivise investment in affordable housing.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
