Construction sees major overhaul – Matheson
Matheson has noted the substantial momentum, regulatory shifts, and structural changes across Ireland's construction and infrastructure sectors in the first half of 2026.
Key developments span new environmental rating standards, risk-management strategies, recent case law, and a wave of new legislation, the lawyers state.
Driven by the European Union's Energy Performance of Buildings Directive (EPBD), a simplified Building Energy Rating (BER) scale came into effect on 24 May, following an announcement by the Department of Housing, Local Government and Heritage.
The number of BER classifications has been reduced from 15 to eight, making the system much more accessible and transparent for consumers.
A new top-tier ‘A0’ rating has been introduced specifically for zero-emission buildings with no on-site carbon emissions from fossil fuels and no operational greenhouse-gas emissions.
Eight-band BER scale
Issued by the Sustainable Energy Authority of Ireland (SEAI), the updated BER certificate displays the new eight-band scale and captures comprehensive building energy data.
This includes annual primary and final energy use, renewable-energy production, building energy demand, and operational greenhouse-gas emissions.
BER certificates issued before 24 May 2026 remain fully valid for their standard ten-year duration.
Force majeure clauses, which excuse parties from contractual performance when extraordinary events make fulfilment impossible, remain a critical area of focus amid ongoing global disruptions, including the war in Ukraine, Middle East conflicts, and lingering post-pandemic shocks that affect supply chains and shipping routes.
Because Irish law contains no statutory force majeure regime for commercial contracts, parties must rely entirely on contractual drafting or the common-law doctrine of frustration.
Because frustration is notoriously difficult to invoke successfully in Ireland, well-drafted contractual force majeure clauses are essential, the lawyers state.
They recommend that contracting parties conduct a thorough review of existing force majeure clauses to verify whether current geopolitical or environmental events qualify.
The England-and-Wales Technology and Construction Court's decision in Mace Construct Ltd v Baltic Investment Holdings Ltd addresses bespoke contract amendments and design responsibility, the lawyers add.
The dispute involved a "sophisticated and complex" amended Joint Contracts Tribunal (JCT) contract for works at the London Baltic Exchange Building.
Design responsibilities
The court analysed how a schedule of derogations and tender clarifications altered contractor design responsibilities.
The court held that bespoke provisions had full contractual effect, limiting Mace's design responsibility for specific items until agreed approval and instruction processes were completed.
The principles carry high practical relevance for Irish project teams, employers, and contractors who frequently rely on extensive bespoke amendments to standard form construction contracts.
Clear drafting and meticulous contract administration remain paramount, Matheson lawyers state.
Policy updates
The second quarter (Q2) of this year has seen a remarkably busy legislative schedule for Irish construction and infrastructure:
- Critical Infrastructure Act 2026: Enacted on 25 June, this act establishes a statutory fast-track channel for designated energy, transport, and water projects, legally requiring public bodies to actively cooperate to accelerate delivery,
- Arbitration (Amendment) Act 2026: Enacted on 17 June, this legislation modernises the State's dispute resolution framework to accommodate international agreements focused on investment protection,
- Public works and dispute resolution: Minister Jack Chambers announced significant modifications to public works contracts to foster earlier collaboration and faster arbitration. Additionally, revised International Chamber of Commerce (ICC) arbitration rules came in on 1 June, alongside a new High Court practice direction on mediation.
Matheson concludes that the legislative pipeline remains packed with upcoming measures – including the MetroLink Bill, Building Standards Regulatory Authority Bill, Heat (Networks and Miscellaneous Provisions) Bill, and Apartment and Duplex Defects Remediation Bill – ensuring continued regulatory evolution through the autumn.