I have just recently checked all this out with Dublin City Council as we are doing an extension.
You can build an extension of 40sqm without planning permission, provided that there is 25sqm left in garden(double check that as not 100%sure on amount).
You dont say whether you are doing a single or double storey extension. If it is a single storey then you can go out the 40sqm but if it is a double storey extension that the second storey can be no more that 12sq m and so the first storey would be 28sqm.
As the previous poster said any previous extensions that where not part of the existing house would have to be taken into consideration. So if the exsisting extension is 20sqm, then you only have 20sqm left.
I would not take the builder at his word. Ring you local council or even call into them to double check everything. There is no point in building extension only to find out that you do need pp on it.