Ireland’s RIAI Construction Contract 2025: Key Changes for Employers and Contractors

The Royal Institute of the Architects of Ireland (RIAI) introduced its new RIAI Construction Contract in late 2025, updating the widely used 2017 form. Although adoption has initially been cautious, with some businesses continuing to use the previous form supplemented by bespoke amendments, engagement with the new contract is increasing.

The 2025 edition retains much of the substance of its predecessor but introduces a clearer structure and several important changes affecting liability, insurance, contractor claims, subcontracting, collateral warranties and dispute resolution. Employers, contractors, funders and other businesses involved in Irish construction projects should therefore consider how the revised provisions affect contractual and project risk.

A clearer contract structure

One of the most visible changes is the introduction of Contract Particulars, replacing the Appendix used in previous editions.

Located at the beginning of the Conditions of Contract, the Contract Particulars allow parties to record project-specific information and select applicable optional provisions more easily. The previous 38 clauses have also been reorganised into 12 clauses, providing a more streamlined structure while retaining much of the substance of the earlier contract.

New cap on contractor liability

The 2025 contract introduces a monetary cap on the contractor’s liability.

Unless the parties opt out through the Contract Particulars, the contractor’s liability is capped at the Contract Sum. Certain liabilities remain outside the cap, including those arising from fraud, fraudulent misrepresentation or wilful default, as well as death or personal injury, damage to third-party property and matters intended to be covered by the required insurance policies.

The change reflects established market practice but makes consideration of the appropriate liability cap an important part of contract negotiations and project risk assessment.

Updated insurance provisions

The overall allocation of insurance risk remains broadly consistent with the 2017 contract, although the new form contains several notable changes.

Professional indemnity insurance must be maintained as specified in the Contract Particulars, subject to availability at commercially reasonable rates. The default minimum professional indemnity insurance limit is €1.5 million in aggregate and cover must be maintained for six years following practical completion.

Parties can also provide for products liability, non-negligence and latent defects insurance.

All-risks insurance must now include the contractor and employer as composite insured parties. Where specified in the Contract Particulars, a funder may also be included, reflecting modern construction financing arrangements and providing additional protection for project funders.

Stricter deadlines for contractor claims

Contractors should pay particular attention to the new claims procedure.

Where an event may give rise to a claim, the contractor must notify the architect as soon as possible and no later than 20 working days after becoming aware, or when it ought reasonably to have become aware, of the relevant event.

Full details of the claim must then be provided within a further 25 working days.

Failure to comply with the contractual procedure can result in the contractor losing its entitlement to an increase in the Contract Sum or an extension of time, with the employer released from liability in relation to the matter.

The provisions make effective project administration and internal claims-management procedures particularly important under the new contract.

Changes to subcontracting and partial completion

The 2025 contract recognises Selected Sub-Contractors appointed before execution of the main contract, reflecting developments in market practice, while retaining provisions dealing with Nominated Sub-Contractors.

It also introduces a more structured approach to partial possession and completion.

Where an employer proposes to take possession of part of the works and this would materially affect sequencing or timely completion, the contractor may raise a reasoned objection. Where the objection is justified, possession may be deferred.

The change is intended to provide greater certainty around an issue that has historically been capable of creating disputes between employers and contractors.

Stronger collateral warranty requirements

The new contract significantly expands the collateral agreement regime.

Contractors may be required to obtain collateral agreements from specified subcontractors for the benefit of employers and other identified beneficiaries. Contractors may also be required to provide their own collateral agreements to specified beneficiaries.

Importantly, failure to provide the required collateral agreements can affect payment. An employer is not required to pay for the relevant works until the necessary agreements have been supplied.

Provision of all required collateral agreements is also a condition of Practical Completion, making management of these documents an important part of project delivery rather than simply an administrative exercise at the end of a project.

Greater emphasis on resolving disputes through negotiation

The revised dispute resolution provisions encourage parties to prioritise negotiation before escalating a dispute.

Conciliation and arbitration remain available, but arbitration can now be excluded through the Contract Particulars. This gives parties greater flexibility when deciding how disputes arising from a project should ultimately be resolved.

The greater emphasis on negotiation reflects an effort to resolve disputes more efficiently, reduce legal costs and preserve commercial relationships where possible.

Some important omissions remain

Despite the changes, the new contract does not provide a Design & Build form. Given the widespread use of contractor-led design arrangements, parties may therefore continue to rely on bespoke amendments where this procurement structure is required.

The standard form also does not contain specific nuisance or utilities and services clauses addressing issues such as noise, dust, vibration, site disruption and existing services.

Bespoke amendments are therefore likely to remain an important feature of projects using the RIAI form.

What this means for businesses

The RIAI Construction Contract 2025 represents an evolutionary rather than wholesale change to the Irish construction contracting framework, but several of its provisions have significant practical consequences.

Employers and contractors should pay particular attention to liability caps, insurance requirements, the stricter timetable for contractor claims and the expanded collateral warranty regime. Funders and investors involved in Irish construction and development projects should also consider how the revised insurance and collateral agreement provisions affect their protections.

For international businesses undertaking construction, development or investment projects in Ireland, the changes also demonstrate the importance of reviewing local contractual requirements rather than relying solely on standard group contracting practices used in other jurisdictions.

As adoption of the 2025 form increases, early consideration of its risk allocation and project administration requirements should help businesses identify where amendments are necessary and reduce the potential for contractual disputes later in the project.

By Byrne Wallace Shields, Ireland, a Transatlantic Law International affiliated firm. 

For further information or for any assistance please contact ireland@transatlanticlaw.com.

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