The Time is Money Blog
Irish Adjudication Law Explained: Lessons from Tenderbids Ltd v Electrical Waste Management Ltd – How Contractors Must Now Adapt
Feb
In light of this judgment, it would be Best Practice that Contractors do the following.
1. Treat notices as jurisdictional instruments, not admin
What the Tenderbids v EWM cases now confirm:
- A defective notice can kill adjudication entirely (2025 decision)
- Courts will not overlook:
- wrong method of service
- wrong addressee
- informal delivery
- Even actual knowledge and email read receipts are irrelevant
Adaptation
Create a “jurisdiction checklist” before every adjudication step.
Contractors should:
- Extract the exact notice clause from the contract
- Identify each notice type (payment claim, intention to refer, referral)
- Follow the prescribed method literally
- Use registered post + duplicate belt-and-braces service
Rule of thumb – If service is challenged later, assume the court will read the clause against you.
2. Stop assuming non-response = automatic win
What [2026] IEHC 5 makes clear:
- Failure to respond to a payment claim:
- crystallises a dispute
- does not trigger default payment
- does not bar defences in adjudication
- “Smash and grab” adjudication does not exist in Ireland
Adaptation
Contractors must:
- stop framing adjudications solely on nonresponse
- plead the substantive payment entitlement
- prepare for valuation, entitlement, and setoff arguments
Non-response is leverage, not entitlement.
Use it to:
- accelerate referral,
- narrow issues,
- highlight employer procedural weakness – but never as the sole merits platform.
3. Draft payment claims for litigation, not leverage
Since non-response no longer guarantees outcome…
Payment Claim Notices must now:
- read like Statements of Claim
- withstand cross examination and valuation
- demonstrate:
- contractual basis
- work scope
- measurement
- pricing
- variation authority
- quantum methodology
Adaptation
Contractors should:
- treat each payment claim as if it will be:
- adjudicated,
- litigated,
- and later revalued
- attach contemporaneous records
- avoid inflated or speculative claims
Overclaiming is now dangerous, because it removes the psychological pressure of default payment while preserving full defence rights for the employer.
4. Participate robustly in adjudication – silence no longer punishes
Ironically, employers now suffer less from silence than contractors assumed. That means contractors must fight properly in adjudication.
Adaptation
- anticipate full employer defence, even if no payment response was given
- prepare expert level valuation evidence early
- resist any temptation to rely on procedural shortcuts
The Irish Courts have confirmed – Adjudication is an accelerated merits process, not a penalty regime. Contractors who treat it as the latter will lose momentum.
5. Frontload contracts with adjudication resilience
Until the Act is amended in the Oireachtas, contract drafting is the contractor’s real defence.
Where negotiation is possible, contractors should push for:
- electronic service expressly permitted
- deemed service clauses
- simplified notice wording
- clear valuation mechanisms
- Adjudication friendly time bars that favour cashflow
Even on standard forms (RIAI, FIDIC, NEC):
- amend notice provisions
- eliminate unnecessary technical traps
- align service clauses with operational reality
6. Shift strategy: adjudication is cashflow triage, not knockout
The High Court has effectively confirmed this hierarchy:
- Adjudication = temporary cashflow management
- Arbitration/litigation = final valuation and justice
Adaptation
Contractors should:
- aim to win enough cashflow to keep projects alive
- accept that revaluation is likely
- plan disputes as two stage processes
Smart contractors now:
- design adjudications to succeed and survive later review
- avoid positions that look opportunistic under judicial scrutiny
7. Train commercial teams – not just lawyers
These cases expose a structural industry problem – Too many statutory failures occur at site and commercial team level.
Adaptation
Contractors should:
- train QSs and PMs on:
- notice consequences
- statutory gateways
- adjudication triggers
- implement internal “red flag” processes
- escalate nonresponses immediately
Payment discipline is now a management issue, not just legal risk.
8. Use adjudication timing strategically
Since nonresponse merely crystallises a dispute (and nothing more)…
Contractors should:
- choose whento trigger adjudication tactically
- wait until records are ready
- secure expert input early
- avoid rushed referrals based on false assumptions of default success
Speed without substance now reduces leverage, rather than increases it.
Bottom line (hard truth)
The Irish Payment regime now demands procedural precision and substantive strength.
Contractors must adapt by:
- abandoning UK influenced expectations,
- professionalising payment claims,
- treating adjudication as accelerated litigation,
- and eliminating technical sloppiness.
Until the Oireachtas reforms the Act – Cashflow protection comes from preparation – not procedural ambush!
If you have any questions about contract claims, please do not hesitate to contact us.
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