Key Legal Developments as of September 2025

The Irish construction industry is experiencing significant regulatory changes in 2025, driven by efforts to enhance standards, sustainability, worker protections, and infrastructure delivery.

Below is a summary of the most recent and impactful legal news, based on developments up to September 2025.

1. Sectoral Employment Order (SEO) for Construction. A new SEO, approved in November 2024 and effective from August 1, 2025, introduces mandatory minimum standards for pay, pensions, and sick pay in the construction sector. This includes a 3.4% increase in hourly rates starting August 2025 (followed by 3.2% in 2026), enhanced pension contributions, and improved sick pay entitlements for approximately 46,600 workers, including craftspeople, operatives, and apprentices. This aims to attract skilled labor amid housing and infrastructure demands but will raise labor costs, necessitating contract and budget adjustments.

2. Statutory Construction Industry Register Ireland (CIRI). The Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022 makes CIRI mandatory by the end of 2025, transitioning from its voluntary status since 2014. Administered by the Construction Industry Federation (CIF), it requires all main contractors, sub-contractors, and building works providers to register based on qualifications and experience, with an expected initial 5,000+ members. A new Admissions and Registration Board will handle compliance, complaints, and sanctions like suspension. This reform promotes accountability, safety, and fair competition while combating unregulated activity.

3. Building Control (Amendment) Regulations 2025. Published in March 2025 and effective from May 1, 2025, these amendments to the Building Control Regulations 1997 update definitions, expand commencement notice requirements, and mandate certificates for fire safety and disability access, particularly for industrial and storage buildings. They align with the Building Regulations (Part B Amendment) 2024 on fire safety, enhancing public oversight and compliance to prevent defects.

4. Building Information Modelling (BIM) Mandate Expansion. The government’s BIM mandate, initially for public projects over €100 million in 2024, extends in 2025 to design teams on projects ≥€20 million and contractors on those >€100 million. This phased rollout to 2028 requires digital processes for all public works, aiming to improve efficiency and reduce errors in construction. It supports broader digital transformation in the sector.

5. Planning and Development Act 2024. Signed into law in October 2024 with phased commencement through early 2026, this major reform overhauls Ireland’s planning system—the most comprehensive in over 20 years. Key changes include renaming An Bord Pleanála to An Coimisiún Pleanála, extending local development plans to 10 years (with 5-year reviews), streamlining judicial reviews (e.g., cost caps, no High Court leave), and enabling direct applications for large-scale developments. It addresses delays in infrastructure and housing projects.6. National Development Plan (NDP) Review 2025. The NDP Review allocates €275.4 billion for 2026–2035, with €102 billion in capital by 2030, boosting construction through investments like €36 billion for 300,000 new homes, €22 billion for transport (including low-carbon initiatives), and €10 billion for utilities. Challenges include labor shortages, planning bottlenecks, and procurement issues, with a new Infrastructure Division tasked to accelerate delivery.

7. Sustainability and Environmental Regulations

• Residential Zoned Land Tax (RZLT): Effective 2025, a 3% annual tax on serviced, zoned residential land to encourage development, with deferrals for active projects.
• Green Public Procurement Strategy: Published April 2024, mandates 30% embodied carbon reduction by 2030 for public projects, requiring low-carbon materials.
• Low-Carbon Cement Mandate: From September 2024, all state-funded projects must use low-carbon cement to align with net-zero goals by 2050.
• Recast Energy Performance of Buildings Directive: To be transposed by May 2026, targeting decarbonized buildings by 2050.

8. Other Notable Changes

• Auto-Enrolment Pension Scheme: Effective September 30, 2025, mandates automatic enrollment for eligible employees, with phased contribution increases.
• EU AI Act and Data Act: Regulate AI use (e.g., in project management) and data access from connected products, requiring compliance reviews for risk management and efficiency.
• Corporate Sustainability Reporting Directive (CSRD): Requires large firms to report sustainability impacts from 2026, affecting supply chains.
• NIS2 Directive: Implements cyber-security baselines for midsize+ construction firms.
• Heat (Networks and Miscellaneous Provisions) Bill 2024: Set for enactment in 2025, regulates district heating with consumer protections.
• Building Standards Regulatory Authority: Legislation in preparation for enhanced enforcement and inspections.

These developments emphasize compliance, sustainability, and efficiency, potentially increasing costs but supporting long-term growth.