Construction and Engineering
Construction contracts
FIDIC
FIDIC has now formally published its new Carbon Management Guide, along with accompanying guidelines for the Red Book 2017 (2022 print run) and White Book 2017. These materials are intended to provide practical, contractual and innovative tools to embed carbon management across every stage of the project lifecycle.
CAPITAL WORKS MANAGEMENT FRAMEWORK
The Department of Public Expenditure updated Guidance Note 1.6.3 on pre-qualification of consultants using minimum standards for selection criteria. The guidance is relevant for the procurement of technical consultants (COE1 Contract), archaeologists (COE2 Contract), and design-build contracts (Contractor’s Designer) using the PW-CF2 and PW-CF4 pre-qualification procedures.
RETENTION PAYMENTS IN THE UK
In the UK, the Government has committed to bringing forward legislation to tackle late payments. The proposals include a ban on the withholding of retention payments under the terms of construction contracts (in the public and private sector) with the aim of preventing small firms from losing retentions to insolvency or non-payment.
Proposals would include a 60-day cap on payment terms on all large firms when paying smaller suppliers. New mandatory interest on late payments would also be introduced, with a requirement for all commercial contracts to include statutory interest at 8% above the Bank of England base rate.
In Ireland, the Capital Works Management Framework recognises and facilitates alternatives to cash retentions, through more structured, security‑based risk management. Project bank accounts are also formally recognised and encouraged in public works procurement.
More broadly, there have also been contractor-friendly reforms in recent years, including increased flexibility around the inclusion of liability caps for contractors in public works contracts, and the introduction of a liability cap in the Public Works Contracts and the 2025 edition of the RIAI construction contract. It remains to be seen whether there is any appetite in Ireland to adopt reforms akin to those being pursued in the UK.
Building regulations
PROPER MATERIALS
The Department of Housing, Local Government and Heritage is consulting until 30 April 2026 on draft amendments to Part D of the Second Schedule to the Building Regulations (Materials and Workmanship) and the associated draft Technical Guidance Document D.
The intent is to align with the new Construction Products Regulation (EU) 2024/3110 by ensuring that the definition of “proper materials” includes construction products bearing a CE mark or complying with a harmonised technical specification under the new Regulation. Part D provides that all works to which the Building Regulations apply shall be carried out with proper materials and in a workmanlike manner. Further information is available here: Public Consultation on amendments to Part D (Materials and Workmanship) of the Second Schedule to the Building Regulations.
TECHNICAL GUIDANCE DOCUMENT B 2024 (FIRE SAFETY)
The Department of Housing, Local Government and Heritage published an updated edition of Technical Guidance Document B 2024 – Fire Safety – Volume 1: Buildings Other Than Dwelling Houses (January 2026).
Infrastructure
CRITICAL INFRASTRUCTURE BILL
The Government approved the General Scheme of the Critical Infrastructure Bill, one of the initiatives to emerge from the Government’s Accelerating Infrastructure Plan. The General Scheme is not yet available, but the press release indicates that provisions would include:
- powers to designate projects / programmes as “critical infrastructure”,
- requirements for bodies in the approval process to immediately prioritise “critical infrastructure” projects and to cooperate on a whole-of-State basis to create a fast-track pathway for nationally significant projects / programmes, and
- powers for the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to give directions to relevant bodies in the performance of their duties.
EU INDUSTRIAL ACCELERATOR ACT
The European Commission proposed a Regulation on establishing a framework of measures for the acceleration of industrial capacity and decarbonisation in strategic sectors. It sets out several measures including measures for streamlining permit-granting for “industrial manufacturing projects”, including “energy-intensive industry decarbonisation projects”.
Further information is available in our briefing: The EU Industrial Accelerator Act: Impacts on renewable energy auctions, public procurement and FDI.
EU AFFORDABLE HOUSING ACT
The European Commission opened a call for evidence until 3 April 2026 on the development of a Directive aimed at helping public authorities to identify when an area can be considered under housing stress, providing legal certainty on justified and proportionate measures that authorities can take to temporarily protect housing markets, and identifying longer-term solutions for increased housing supply. The impact assessment and link for feedback is available here: Affordable housing act.
WASTEWATER INITIATIVE FOR SMALL DEVELOPMENTS
S.I. No. 65/2026 - European Union (Water Policy) (Small Wastewater Discharge Register) Regulations 2026 are intended to introduce a streamlined registration system for developments of up to 40 homes or a population equivalent of 150. Developers can design and build wastewater infrastructure in partnership with Uisce Éireann, with assets transferring on completion. Further information is available here: Minister Browne announces implementation of Developer-Led Wastewater Initiative to accelerate housing in towns and villages.
Sustainability
BIOMETHANE PRODUCTION
We previously considered the development of projects for biomethane production in our briefing: Biomethane: Guide to project development in Ireland.
We look at recent developments in this sector in a further briefing: Biomethane sector in Ireland: Decisions on Guarantees of Origin and Reverse Grid Compression.
ENERGY EFFICIENCY AND ENERGY PERFORMANCE OF BUILDINGS
Commission Recommendation (EU) 2026/536 sets out practical guidance on one-stop shop services for energy efficiency and the energy performance of buildings. The Commission states that the low demand for energy renovations and energy efficiency improvements is a critical barrier to meeting EU objectives. One-stop shops are intended to provide information and assistance to citizens and to activate and aggregate demand for energy efficiency and energy renovation investments. The Commission has also assessed public spending for energy efficiency and the energy performance of buildings.
Commission Recommendation (EU) 2026/537 sets out 12 actions for Member States and market actors to unlock private investment in energy efficiency. They include, for example, setting up a national energy efficiency fund and scaling up long-term financial instruments and blended financing solutions.
NATIONAL BUILDING RENOVATION PLANS
The European Commission opened infringement procedures by sending a letter of formal notice to several countries, including Ireland, for failure to submit a draft National Building Renovation Plan by the deadline of 31 December 2025, as required under the recast Energy Performance of Buildings Directive (EU) 2024/1275. Member States have two months to respond to the letters of formal notice. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion in the next stage of the infringement procedure.
EMISSIONS TRADING SYSTEM 2
As part of the European Green Deal, the EU designed “ETS2” to impose a cost of carbon on suppliers of fossil fuels used for buildings and road transport. The EPA is the national competent authority in Ireland. Monitoring and reporting requirements apply and the system was scheduled to become fully operational in 2027. However, amendments made to the European Climate Regulation now formally postpone the operation of emissions trading for buildings, road transport and additional sectors until 2028.
CIRCULAR ECONOMY
A new circular economy strategy in Ireland sets actions for priority sectors including construction. Actions for the construction sector are summarised on page 43. They include publication of a Circularity Roadmap for the Construction Sector in 2026. By 2027, a sectoral compact partnership is to be agreed between the government and construction industry to accelerate circular practices.
UK CARBON BORDER ADJUSTMENT MECHANISM
The UK Government published a policy summary of the CBAM to commence in the UK on 1 January 2027. Like the EU CBAM, it would require importers of certain goods to the UK to pay the price of any carbon embedded in the goods through the purchase of CBAM certificates. The goods that will be in scope of the UK CBAM are goods from the aluminium, cement, fertilisers, hydrogen, and iron and steel sectors and downstream producers that use these goods in their supply chains.
There is potential for the EU and UK to agree to link their respective emissions trading schemes, which the EU indicates would allow goods from both parties to qualify for mutual exemptions from each side’s CBAM.
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