RIAI 2025 Form of Building Contract: Update for contractors and insurers

Overview 

The Royal Institute of the Architects of Ireland (RIAI) has introduced the RIAI Construction Contract 2025, a new suite of standard contracts developed, in consultation, with the Construction Industry Federation (CIF) and the Society of Chartered Surveyors Ireland (SCSI). These contracts replace the 2017 editions and are designed to reflect modern construction practices, including greater complexity in design, sustainability, and project delivery. 

The 2025 Blue Form, designed for projects without quantities (typically smaller or less complex works) has a clearer structure, with “Contract Particulars” now at the front.  This update outlines key updates in the Blue Form and the practical issues relating to the new clauses on professional indemnity, insurances, explicit notice periods, limitations, and dispute resolution.  

If you’re involved in construction risk, project delivery, or insurance placement, these updates are relevant to your work. 

Section 1: Key features & updates 

Professional indemnity insurance (PII) (Sub-Clause 5.3) 

Contractors and any sub-contractors undertaking design must provide PII. 

The RIAI 2025 Blue Form makes it clear that Professional Indemnity Insurance ("PII") is required from both the contractor and any sub-contractor undertaking design. This is a significant point: PII is not optional where design responsibility is involved, and its inclusion reflects the increasing complexity and risk profile of modern construction projects. 

PII requirements must be clearly stated in the Contract Particulars and communicated to tenderers. 

PII requirements must be explicitly stated in the Contract Particulars and made known to all tenderers. This ensures that all parties are aware of the insurance obligations from the outset and can price and plan accordingly. Failure to specify PII requirements at this stage could lead to disputes or gaps in cover later.  

It is best practice for the Employer to include a schedule or matrix of PII requirements for both the Contractor and Sub-Contractors in the contract documents. 

The RIAI Guidance Note recommends that the employer includes a schedule or matrix of PII requirements for both the contractor and sub-contractors in the contract documents. This approach provides clarity and transparency, helping to avoid misunderstandings about who is responsible, and for what level of cover.

Practical implications: 

• Contractors and sub-contractors must check that their PII policies meet the contract’s requirements before tendering. Early engagement with brokers and insurers is key. 
• Employers should verify that all relevant parties have appropriate cover in place and that it is maintained for the required period. 
• Insurers may wish to review the Contract Particulars and schedules to confirm that the PII requirements align with policy terms and limits. 

The RIAI 2025 Blue Form approach to professional indemnity insurance is robust and in line with industry best practice. It places a clear obligation on those undertaking design to maintain adequate cover, and it encourages transparency through the use of schedules and matrices. Both contractors and employers (and their respective insurers) should pay close attention to these requirements at the tender stage to avoid issues during the project or post completion.

Insurances (Clause 5) 

• The contract retains previous insurance requirements and adds options for products liability, non-negligence, and latent defects insurance. 
• Products liability insurance covers loss, damage, or injury due to faulty products, usually included in public liability policies. 
• Responsibility for existing structures: By default, the employer is liable for loss/damage to existing structures (including contents) caused by specified perils, even if due to contractor/sub-contractor negligence. This can be disapplied if not appropriate. 
• Employers must ensure suitable insurance is in place, including a waiver of subrogation against the contractor and sub-contractors. 
• Specialist insurance advice is recommended for works involving existing structures. 

Limitation of liability (Optional sub-clause 5.10) 

• Allows for an aggregate cap on the contractor’s liability, with exceptions. 
• The default cap is the contract sum, but this can be adjusted in the Contract Particulars. 
• The cap should be set after careful risk analysis, considering project scale, complexity, and the financial strength of both employer and contractor. 
• The cap should be identified at tender stage. 

Time bars and notice provisions (Sub-Clause 6.11) 

• Strict time bars apply to contractor claims: 
• Notice of a claim must be given to the architect as soon as practicable, but no later than 20 working days after the contractor becomes aware (or should have become aware) of the event. 
• Full details of the claim must be provided within a further 25 working days. 
• Failure to comply with these notice requirements means the employer is released from liability for the claim. 
• If the event is ongoing, interim details must be provided every fortnight. 
• The contractor must also mitigate the effects of the event and keep records. Adjustments to these timelines can be agreed in writing on a claim-by-claim basis. 

Dispute resolution (Clause 12) 

• The contract prioritises dispute avoidance and resolution through negotiation. 
• The parties can opt out of arbitration; if not specified, arbitration is the default. 
• Statutory adjudication under the Construction Contracts Act 2013 is also provided for

Section 2: Key risks for contractors 

Strict Time bars on claims 

• Failure to notify the Architect within 20 working days of becoming aware of a claim event results in loss of entitlement. 
• Full claim details must be submitted within a further 25 working days. 
• Ongoing events require fortnightly updates. 
• Robust systems are needed to track events and issue timely notices. 

Insurance obligations 

• Contractors and any sub-contractors undertaking design must have PII, with requirements clearly set out in the contract. Failure to comply could result in breach of contract or uninsured liabilities. As such early engagement with insurers at tender stage is recommended.  
• By default, the employer is responsible for loss or damage to existing structures, but this default position can be changed. If responsibility is transferred, the contractor may face uninsured risks unless appropriate cover is arranged. Contractors should review the contract in advance and consult with their insurers to determine whether additional insurance is required. 
• Overall, contractors and their insurers should carefully review insurance requirements in the Contract Particulars and ensure all required policies are in place and adequate. 

Limitation of liability 

• The contract allows for an aggregate cap on the contractor’s liability, but the default is the contract sum unless otherwise agreed. If the cap is set too high, it may expose the contractor to excessive risk; if too low, it may deter insurers or lead to uninsurable exposures. 
• Contractors and their insurers should ensure the liability cap is reasonable and commensurate with the project’s risks and their own insurance cover. 

Dispute resolution procedures 

• The contract defaults to arbitration unless specifically opted out. Contractors may find themselves in arbitration or statutory adjudication, under the Construction Contracts Act 2013, which can have cost and procedural implications. 
• It is recommended that contractors understand the selected dispute resolution mechanism and prepare accordingly. 

Optional clauses and schedules 

• The contract includes several optional clauses (e.g., for insurances, performance bonds, advance payments) that may or may not apply depending on what is ticked in the Contract Particulars. Missing or misunderstanding these can lead to unexpected obligations or exposures. 
• As such, contractors are recommended to review the Contract Particulars and all schedules carefully to confirm which optional clauses apply and what obligations they impose. 

Responsibility for sub-contractors and design 

• Contractors are responsible for the performance and insurance of selected and nominated sub-contractors, especially where design is involved. 
• Contractors are recommended to check that all sub-contractors meet the contract’s insurance and professional indemnity requirements, and that their roles are clearly documented in the sub-contracts. 

Record keeping and mitigation 

• Contractors must keep detailed records to substantiate claims and demonstrate efforts to mitigate losses or delays. Failure to do so can result in lost entitlements. 
• Contractors and project parties are recommended to maintain comprehensive site records and document all communications and events relevant to claims. A well-organised file is the best defence in the event of a claim and serves as a critical tool for risk management. 

Section 3: Impact on architects as contract administrators  

The updated insurance provisions in the RIAI 2025 Blue Form have important implications for architects operating in the role of contract administrator: 

• Clarity and communication: Architects must check that all insurance requirements, especially professional indemnity insurance (PII) and other project-specific covers, are clearly set out in the Contract Particulars and communicated to all parties at tender stage. 
• Verification and compliance: As contract administrators, architects are responsible for verifying that contractors and relevant sub-contractors have provided evidence of the required insurances, including PII, and that these policies remain in force for the duration specified in the contract. 
• Record keeping: Robust documentation and record keeping are essential. Architects should maintain clear records of all insurance certificates, renewal notices, claim records, and any correspondence relating to insurance compliance. 
• Advisory role: Where optional insurance clauses (such as non-negligence or latent defects insurance) are considered, architects may need to engage with the employer and its insurer on the appropriateness of these covers and ensure that any waivers of subrogation or other special conditions are properly documented. 
• Claims and notices: In the event of a claim or potential claim, architects must ensure that all contractual notice requirements are strictly adhered to, as failure to comply with time bars can result in loss of entitlement for the contractor and potential disputes. 

The RIAI Agreement between Client and Architect is also being updated to align with this new contract suite, ensuring consistency across project documentation. 

These changes have direct implications for architects acting as contract administrators. The updated contract places greater emphasis on clear communication, strict adherence to notice periods, and robust documentation, making the architect’s role in administering the contract, certifying claims, and ensuring compliance even more pivotal to successful project delivery. 

Section 4: Summary note for insurers 

The RIAI 2025 Blue Form introduces new and clarified insurance obligations, including professional indemnity, products liability, non-negligence, and latent defects insurance. 

Insurers and brokers looking at cover requirements for contractor risks should pay particular attention to: 

• The default and optional insurance requirements set out in the Contract Particulars and Schedules. 
• The waiver of subrogation requirements, especially where the employer is responsible for insuring existing structures. 
• The potential for aggregate liability caps and how these interact with policy limits and exclusions. 
• The need for clear communication with insured parties regarding compliance with all contractual insurance obligations. 

Overall, the key message is that early review of the contract by contractors in conjunction with their insurers is recommended to ensure that all required covers are in place and that policy terms align with the contract’s requirements. 

Conclusion  

The RIAI 2025 Blue Form represents a significant update to standard construction contracts in Ireland, reflecting modern industry practices and the increasing complexity of project delivery. Developed in collaboration with key industry bodies, and stakeholders, the contract introduces a clearer structure, explicit timeframes for notices, and enhanced provisions for insurance, liability, and dispute resolution. 

For contractors, the contract brings both opportunities and responsibilities. There is a strong emphasis on timely communication (with strict time bars for claims), robust insurance arrangements (including mandatory professional indemnity insurance for all parties involved in design), and clear risk allocation through optional clauses and liability caps. Contractors must be diligent in understanding and complying with these requirements from the outset. 

For insurers, the contract’s detailed insurance provisions and the requirement for transparency in cover levels and responsibilities will support better risk management and claims handling. Early engagement and careful review of the Contract Particulars are essential to ensure alignment with policy terms. 

Overall, the RIAI 2025 Blue Form aims to foster greater clarity, fairness, and certainty for all parties involved in construction projects, supporting more collaborative and efficient project delivery. Both contractors and insurers should review the new contract, and it is recommended that contract parties seek specialist advice where necessary to ensure effective risk management.