Lawyers at A&L Goodbody (ALG) have urged construction employers and contractors to ensure that future contracts are clear on the costs linked to a new levy on concrete products.

The Defective Concrete Products Levy (DCPL) was introduced to fund a redress scheme for homeowners affected by defective concrete products used in the building of homes.

The levy was included in the Finance Act 2022, which inserted part 18E and schedule 36 into the Taxes Consolidation Act 1997.

It will apply to the first supply of certain concrete products supplied on or after 1 September 2023.

First supplies

In a note on the firm’s website, the ALG lawyers point out that there are no prescribed timelines for how long the DCPL will remain in place.

The levy will be calculated at 5% of the open market value of the concrete product on the supply date.

“Liability for payment of the DCPL stays with the person that first supplies the concrete product within the State. The obligation to pay the DCPL will not travel with the concrete product,” ALG says.

Risks

The ALG lawyers urge contractors and employers to check back over existing contracts to determine how changes in legislation are dealt with, and where the risks linked to the DCPL lie from 1 September.

They also say that firms should check, when purchasing concrete products, whether this is the first supply of the concrete product in the State and, if so, that the DCPL will be paid or has already been paid.

Revenue has also issued guidance on the levy.