Growing use of NEC4 in Ireland: trends and opportunities

NEC4 contract use is growing in the Republic of Ireland. Although NEC3 and NEC4 contracts have been used in the country for many years – for example Haulbowline Island tip remediation, Cork, Luas Cross City line utility diversion and Dublin Airport projects – NEC4 will be used on several major infrastructure projects being procured in 2025.

Big rise in construction

Ireland is seeing a huge increase in major construction projects on the back of investment by multinational technology and pharmaceutical companies. The government also has a large budget surplus due to tax windfall payments from technology companies. At the same time, the central bank estimates a need to build 52,000 new homes a year for the next 25 years to keep up with demand, around 50% more than current targets.

The success of NEC4-procured projects overseas has led sponsoring agencies in the Irish government to promote NEC4 as the best solution for delivering the surge in major new domestic construction projects, particularly where the experience and resources of international contractors and consultants are needed.

A further benefit of NEC4 is the set of Ireland specific Y(IR) clauses developed in 2021 to incorporate the requirements of the Irish Construction Contracts Act 2013. These provide a legally compliant contractual approach for the timing of payment applications, responses to payment applications, rights to suspend performance for non-payment and adjudication of payment-related disputes.

Current projects using NEC4

Recent NEC4 projects in Ireland include Limerick City and County Council’s €150 million highway project between Foynes and Limerick Road, including the Adare Bypass. This was awarded under an NEC4 Engineering and Construction Contract (ECC) Option C (target contract with activity schedule) to Sisk Sorensen Joint Venture in February 2025. It is due for completion by June 2027, ahead of the Ryder Cup golf tournament at nearby Adare Manor.

Other major infrastructure public procurements starting in 2025 include Transport Infrastructure Ireland’s (TII) €10 billion Dublin Metrolink, a 16 station modern metro railway connecting Dublin Airport to the city centre. Design packages have already been awarded and NEC4 ECC will be used to procure enabling works and design-and-build contract packages for the main tunnelling, civils works and track infrastructure. In May 2025 TII released prior information notices for advanced NEC4 ECC packages, including specialist heritage works, utility diversions, civil engineering enabling works, survey and monitoring.

Another multi-billion-euro NEC4 project is Irish Rail’s DART+, which will expand the Dublin Area Rapid Transit network from 50 km to over 150 km. Market engagement sessions have confirmed that NEC4 will be used, and work is due to start in 2026.

Emerging opportunities

As use of NEC4 grows, various new users in Ireland are investing in training to ensure their people are NEC4 ready. International contractors with NEC4 experience are also training their people in Ireland to be prepared for incoming uptake.

Earlier this year, NEC held its NEC4 ECC Project Manager Accreditation programme for the first time in Dublin, which shows a clear demand in Ireland for users to upskill their working knowledge of NEC4. There has been increase of other NEC4 related workshops and events taking place in Ireland. In November 2023, the Engineers Ireland Dispute Resolution Board chair Gerard Monaghan gave a presentation on whether conciliation, the default dispute resolution process in Ireland for public infrastructure projects, had a role to play in NEC4 contracts.

Subsequently the Board produced a Z clause to amend option W3 to incorporate an Irish standing conciliator approach. It is understood this has been adopted by TII and others, including on the Foynes to Limerick Road project.

Conclusion

The adoption of NEC4 for use on major infrastructure projects in Ireland has started. As its use emerges in different sectors, it will be interesting to see feedback from these new users of NEC4 contracts.