Companies Cannot Hide Behind Residential Occupier Status to Avoid Adjudication

A new High Court ruling removes a key line of resistance for property companies seeking to escape statutory adjudication under the Construction Contracts Act 2013 

A significant judgment from the Irish High Court — BMC Renovation Ltd v Gael Property Investments Ltd [2026] IEHC 195, delivered by Mr Justice Simons on 27 March 2026 — has settled an important question that has hung over the Construction Contracts Act 2013 since its commencement.

The short answer: if you contract through a company, you cannot invoke the residential occupier exception to escape adjudication. That exception is reserved exclusively for private individuals — not property investment vehicles, family companies, or special purpose vehicles, regardless of who ultimately lives in the house.

What happened?

A contractor (BMC Renovation Ltd) carried out demolition and renovation work to a house in Drumcondra under a written agreement with a property company (Gael Property Investments Ltd). When a payment dispute arose, the contractor referred it to adjudication and was awarded over €119,000.

When the contractor sought to enforce that award in the High Court, the property company resisted on two grounds. First, it argued that the contract fell entirely outside the Act because one of its directors had always intended to move into the property as his family home. Second, it argued that the adjudication process had been procedurally unfair.

The court rejected both arguments and enforced the award in full.

Why the residential occupier exception does not apply to companies

The Act excludes from adjudication contracts where the works relate to a domestic dwelling under 200 square metres and where one of the parties to the contract is a person who occupies, or intends to occupy, the property as their home. This exception exists to protect private householders — people who are unlikely to have the legal resources or commercial experience to navigate a rapid 28-day adjudication process.

The court found that this protection simply cannot extend to a company, for two reasons. First, the company was the contracting party, not the director personally. The director's good intentions were legally irrelevant because he had no standing under the contract. Second, and more fundamentally, the court held that a company can never qualify as a "residential occupier" under any circumstances. The language of the Act — "dwelling", "occupy", "his or her residence" — can only refer to a natural person. A company cannot live somewhere.

The judgment is also a useful reminder that the benefit of trading through a limited company comes with consequences: you cannot claim the protections afforded to individual consumers when it suits you, while retaining the protections of limited liability the rest of the time.

The lesson on adjudication timelines

The court also rejected a procedural fairness argument. When the adjudicator obtained a 14-day extension of time with the referring party's consent (as permitted under section 6(7) of the Act), the responding company argued it should have been consulted first. The court disagreed. The legislation provides two separate extension mechanisms, one that requires both parties' consent and one that requires only the referring party's consent. The adjudicator had used the second mechanism correctly. The responding party's remedy, had it genuinely needed more time, would have been to seek a bilateral, agreed-upon extension, something it never did. Instead, it demanded that the adjudication be stopped entirely, a remedy that does not exist under Irish law.

What this means in practice

If you are a developer, landlord, or property investor who contracts for construction works through a company, the Construction Contracts Act 2013 applies to you. The residential occupier exception will not save you. If a payment dispute arises, the contractor may refer it to adjudication, and you will be required to engage within the statutory timeframe, regardless of your directors' personal circumstances.

If you are a contractor or subcontractor, this judgment strengthens your hand in enforcement proceedings. Property companies that seek to resist adjudication awards by invoking this exception now face clear, recent High Court authority to the contrary.

How ACUA can help

ACUA advises contractors and employers across Ireland on adjudication, payment claims, and construction disputes. Whether you are preparing a referral, responding to a claim, or seeking to enforce an adjudicator's decision, our team has the technical and commercial expertise to guide you through the process.

Get in touch with our team to discuss your position.