Engineering Services Agreement (Ireland)

An Engineering Services Agreement in Ireland sets the services to be provided, the fees, the timetable, and each side's responsibilities for the engagement, and is governed by the Work Act 2005.

Engineers Ireland (the professional body representing all engineering disciplines in Ireland, founded in 1835 and formerly known as the Institution of Engineers of Ireland) requires Chartered Engineer (CEng) members to act in accordance with its Code of Ethics, maintain competence through annual Continuing Professional Development (CPD), carry adequate Professional Indemnity Insurance, and comply with applicable legislation in the discharge of their professional duties. Engineers Ireland also awards the Associate Engineer (AEng) and Engineering Technician (EngTech) designations, which are internationally recognised under the Washington Accord and the Dublin Accord respectively. The engineering services agreement should confirm the engineer's professional membership and current designation, and their PII coverage.

The Building Control (Amendment) Regulations 2014 (BCAR, S.I. No. 9 of 2014), which came into force on 1 March 2014, established a mandatory statutory certification regime for most building works requiring a Fire Safety Certificate or a Disability Access Certificate, and for all new dwellings. The BCAR requires the appointment of a Design Certifier (who certifies the design) and an Assigned Certifier (who oversees construction compliance and certifies completion). The Assigned Certifier must be a Registered Architect, Chartered Engineer, or Registered Building Surveyor. Engineers acting as Assigned Certifiers take on significant statutory liability. The BCAR introduced the Building Control Management System (BCMS) — an online platform for lodging the Preliminary Inspection Plan, Inspection Plan, and Certificate of Compliance on Completion with the relevant Building Control Authority.

The Safety, Health and Welfare at Work (Construction) Regulations 2013 (S.I. No. 291 of 2013) establish the Project Supervisor Design Process (PSDP) role for notifiable construction projects — those lasting more than 30 working days with more than 20 simultaneous workers, or involving more than 500 person-days of work. Engineers frequently act as PSDP, taking on responsibility for coordinating health and safety during the design phase, preparing the Preliminary Safety and Health Plan, notifying the Health and Safety Authority (HSA) of the project, and assembling the Safety File on completion. This role carries independent legal obligations under section 17 of the Safety, Health and Welfare at Work Act 2005 and must be specifically addressed in the engineering services agreement.

The Sale of Goods and Supply of Services Act 1980 implies mandatory terms into every engineering services agreement: that the engineer has the necessary skill, will perform the services with due skill, care and diligence, and will use materials that are sound and fit for purpose. These statutory implied terms give clients statutory recourse for negligent engineering design, specification, or administration. The implied terms cannot be excluded in contracts with consumers under section 39 of the 1980 Act, and must satisfy the test of reasonableness in business-to-business contracts.

Structural engineers must design structures in compliance with the Eurocodes — the suite of European structural design standards adopted in Ireland (EN 1990 to EN 1999) — and the Irish National Annexes published by the National Standards Authority of Ireland (NSAI). Compliance with the Eurocodes and the NSAI National Annexes constitutes the recognised standard of professional practice for structural engineering in Ireland.

Mechanical and electrical engineers must design building services to comply with Parts B, F, J, and L of the Building Regulations and their Technical Guidance Documents, the ETCI National Rules for Electrical Installations (5th edition), and relevant Irish Standards (IS) and BSEN standards. The Nearly Zero Energy Building (NZEB) requirements under the European Union (Energy Performance of Buildings) Regulations 2019 (S.I. No. 183 of 2019) impose stringent energy performance standards on all new buildings and major renovations, requiring M&E engineers to design high-performance building energy systems to achieve minimum BER (Building Energy Rating) targets.

For public sector infrastructure projects, the Government Contracts Committee for Construction (GCCC) publishes standard forms of appointment for consultants under the Public Works Contracts framework, which impose specific obligations regarding quality assurance, fee caps, and compliance with public procurement rules under S.I. No. 329 of 2016 (the European Union (Award of Public Authority Contracts) Regulations 2016).

The Mediation Act 2017 (No. 27 of 2017) introduced a statutory framework for mediation in Ireland and requires solicitors to advise clients to consider mediation before initiating litigation. Engineering services agreements should provide for mediation as a first step in the dispute resolution process, with recourse to arbitration under the Arbitration Act 2010 (which adopts the UNCITRAL Model Law) or litigation if mediation fails to resolve the dispute.

An Irish Engineering Services Agreement is needed whenever a client engages a professional engineer to provide engineering design, analysis, survey, certification, or supervisory services in connection with a construction, infrastructure, or engineering project. A written agreement is essential to define the scope of services, agree the fee and programme, confirm the engineer's professional credentials and insurance, and allocate risk between the parties.

You need an Engineering Services Agreement when you are: engaging a structural engineer to design and certify the structure of a new building, extension, or refurbishment; engaging a civil engineer for site development works including roads, drainage, and services; engaging a mechanical and electrical (M&E) engineer to design building services (heating, ventilation, electrical, and fire detection systems); appointing an engineer as Assigned Certifier under the Building Control (Amendment) Regulations 2014; appointing an engineer as Project Supervisor Design Process (PSDP) under the Safety, Health and Welfare at Work (Construction) Regulations 2013; commissioning geotechnical, environmental, or specialist engineering reports or surveys; or engaging an engineer for any professional technical advisory role in connection with the built or natural environment.

From the client's perspective, the engineering services agreement must precisely define the deliverables — the drawings, calculations, specifications, reports, and certificates to be produced — and the programme for their delivery. Clients frequently underestimate the scope of engineering services required for a project, and the agreement should make clear what is included in the agreed fee and what constitutes additional services. For example, a structural engineering fee for a residential extension might include concept structural design, detailed calculations, structural drawings, and a specification, but might exclude site visits, attendance at planning authority meetings, or post-completion certification, each of which should be separately identified and priced.

From the engineer's perspective, the agreement is essential to document the agreed scope, protect against scope creep and unlimited liability, establish a basis for claiming additional fees for services outside the original scope (such as redesigns required by client changes, planning queries, or unforeseen site conditions), and confirm that the client provides all information, decisions, and access required to enable the engineer to deliver the services efficiently.

For multi-disciplinary projects involving architects, structural engineers, and M&E engineers working in parallel, the engineering services agreement should define the interfaces between the engineering disciplines and the mechanism for coordinating the design, managing clashes, and integrating the various engineering designs into a coherent whole. Building Information Modelling (BIM) is increasingly used on Irish projects, and the agreement should address BIM protocols, model ownership, and data sharing where BIM is required.

For residential projects subject to the Building Control (Amendment) Regulations 2014, the engineering services agreement should confirm whether the engineer is being appointed as Assigned Certifier and define the associated obligations — including the preparation and lodgment of the Preliminary Inspection Plan and Inspection Plan on the Building Control Management System (BCMS), the carrying out of compliance inspections during construction, and the issue of the Certificate of Compliance on Completion on behalf of the Assigned Certifier.

Engineers engaged on public sector projects in Ireland must be aware that their engagement may be subject to public procurement obligations under S.I. No. 329 of 2016. The Office of Government Procurement (OGP) publishes standard terms and conditions for the engagement of professional consultants on public works projects, and these cannot be unilaterally modified by the engineer. The fee caps and resource limits applicable to public sector consultant appointments should be confirmed before executing the engineering services agreement.

Under the Companies Act 2014, the Companies Registration Office (CRO) maintains the register of Irish companies. Section 343 of the Companies Act 2014 sets annual confirmation obligations. The Competition and Consumer Protection Commission (CCPC) enforces the Consumer Rights Act 2022. The Central Bank of Ireland regulates financial services under the Central Bank Act 1971. The High Court of Ireland has jurisdiction under Section 212 of the Companies Act 2014.

A thorough Irish Engineering Services Agreement should include the following key provisions.

The parties clause identifies the client and the engineer (or engineering consultancy) by full legal name and address (including Eircode), and — where the engineer is a company — company registration number and registered office. The clause should confirm the engineer's relevant professional membership (Engineers Ireland — Chartered Engineer, Associate Engineer, or Engineering Technician; or the relevant professional body for the discipline) and their current professional designation, as some statutory roles (such as Assigned Certifier) require specific qualifications.

The services clause defines in detail the engineering services to be provided — specifying the discipline (civil, structural, M&E, or other), the work stages (feasibility and concept, developed design, detailed design, planning, tender documentation, contract administration, construction-phase supervision, commissioning, and post-completion monitoring), the specific deliverables at each stage (drawings, calculations, reports, specifications, and certificates), and any statutory roles included (Assigned Certifier under BCAR 2014, PSDP under the Construction Regulations 2013, or other). The clause should distinguish between basic services (included in the agreed fee) and additional services (charged separately).

The fee and payment clause specifies the engineer's fee — whether as a lump sum, a percentage of construction cost, or an hourly or daily rate — the payment schedule aligned to project milestones or monthly valuation, the basis for claiming additional fees for services outside the agreed scope, and the reimbursement of disbursements (third-party costs such as ground investigation, survey, and printing fees). VAT at 23% (the standard rate under the Value-Added Tax Consolidation Act 2010, as confirmed by the most recent Finance Act) applies to professional engineering services and should be clearly addressed, with the fee stated as either inclusive or exclusive of VAT. Late payment interest at the ECB main refinancing rate plus 8 percentage points applies under the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012), which implemented EU Directive 2011/7/EU on combating late payment in commercial transactions. From 1 January 2025, the ECB reference rate used for the purpose of calculating late payment interest is published by the ECB semi-annually; the late payment interest rate applicable to each half-year period should be referenced in the payment clause or calculated by reference to the applicable statutory rate.

The programme clause specifies the programme for delivery of the engineering services, aligned with the overall project programme, and provides for extensions of time where delivery is delayed by the client's failure to provide information or instructions, by changes to the brief, or by other circumstances outside the engineer's control. The clause should specify the mechanism for agreeing programme extensions and their impact on the fee.

The intellectual property clause addresses ownership of engineering drawings, calculations, specifications, and reports — typically confirming that the engineer retains copyright in all documents under the Copyright and Related Rights Act 2000 but granting the client a non-exclusive, royalty-free licence to use the documents for the specific project and site, conditional on payment of the agreed fee. The licence should not extend to use of the documents on other projects or by third parties without the engineer's consent. The engineer should retain the right to copy and use the documents for their own records and portfolio.

The insurance clause requires the engineer to maintain Professional Indemnity Insurance at the specified minimum level (expressed in EUR per claim and in the aggregate) throughout the engagement and for a specified run-off period (typically six years, to match the limitation period under the Statute of Limitations Act 1957 for contract claims) after completion of the services. The clause should also require the engineer to maintain employer's liability insurance and public liability insurance, and to provide evidence of all required covers on request. For Assigned Certifier appointments, the minimum PII cover should reflect the statutory liability exposure.

The liability limitation clause specifies an agreed cap on the engineer's total aggregate liability to the client — linked to the level of PII cover — and any specific exclusions. Irish courts have generally upheld clearly expressed liability limitation clauses in professional services agreements between parties of comparable bargaining power. The cap should not apply to liability for death or personal injury caused by the engineer's negligence.

The client's obligations clause specifies the information, decisions, access, and approvals that the client must provide to enable the engineer to perform the services — including site access, provision of title documents and existing drawings, timely design decisions, and prompt payment. Delay by the client in providing required information or approvals should entitle the engineer to an extension of time and additional fees.

The dispute resolution clause provides for mediation (under the Mediation Act 2017) as a first step, followed by arbitration (under the Arbitration Act 2010) or litigation in the Irish courts as agreed. The governing law clause confirms the agreement is governed by Irish law and the parties submit to the exclusive jurisdiction of the Irish courts. The forms-legal.com Engineering Services Agreement (Ireland) template covers the mandatory elements under Companies Act 2014.