Minister for the Environment Phil Hogan has confirmed the setting up of a register of builders and medium and large contractors.
It will come into effect on a voluntary basis early next year and on a statutory footing in 2015.
Mr Hogan said a lead-in period was required to resolve a number of issues before the register becomes a legal requirement.
This issue had been mooted for some time in light of a number of building irregularities.
Once it is put on a legal footing, operators must be tax compliant and their competence will be assessed.
The minister said a number of issues had yet to be resolved before 2015, such as the income threshold under which contractors and builders will be required to register.
He said it would not affect very small contractors, but medium to large contractors will be legally required to register.
Other issues to be resolved include the penalties for non-compliant builders and who will oversee the register.
The Construction Industry Federation welcomed the move saying it will ensure best practice throughout the industry.
It said the register would help differentiate between the reliable companies and those who have painted the industry in a bad light.
Elsewhere, it is understood there will be a change in the Finance Bill tomorrow to the starting date of the Home Renovation Incentive Scheme.
It was due to begin next year, but it is understood it will now come into effect from Friday.
This was due to fears that some householders are postponing renovation work.