Legal Documents for Construction Companies in Ireland
The Irish construction sector has unique legal challenges around employment status, subcontractor arrangements, and tender processes. The Karshan Supreme Court decision has made it critical for construction companies to properly document whether workers are employees or genuine subcontractors. Revenue is actively reclassifying construction workers, and the penalties for misclassification include back-dated PAYE, PRSI, and USC. Getting your contracts right is not optional - it is essential.
Documents You Need
Common Legal Mistakes in Construction
Misclassifying employees as subcontractors
The Karshan five-step test now governs employment status in Ireland. Construction is one of the sectors most affected. If you control when, where, and how a worker operates, they are likely an employee regardless of what the contract says. Revenue ran a reclassification amnesty that ended in January 2026 - late compliance now carries full penalties.
No written subcontractor agreements
Relying on verbal arrangements with subcontractors exposes you to disputes over scope, payment, defects liability, and insurance. A proper freelancer or service agreement defines deliverables, payment schedules, insurance requirements, and what happens if work is defective.
Sharing tender information without NDAs
Construction tender processes often involve sharing commercially sensitive pricing, methodologies, and client information. Without NDAs in place, there is no legal protection if a competitor or subcontractor shares this information.