The construction industry is notorious for the prevalence of arguments and disputes on construction projects. As your business grows and embarks on more projects, litigation becomes a real risk. Even when you do everything right, problems remain on construction projects.
Cost and payment issues, variations, programme delays or ambiguity in the project specifications can all give rise to disputes. The adversarial nature of the industry and a misunderstanding of the distribution of risks in construction contracts create fertile grounds for disputes to fester.
Each dispute on average costs several thousands of pounds in legal costs and lasts several months.
A dispute can destabilise the best-planned cash flow; cause maximum anxiety; damage relationships; inhibit business growth and in many cases lead to insolvency and demise of the business.
Few Employers and even fewer Contractors and Sub-Contractors take pre-emptive steps to avoid these disputes. In our experience, the cost of obtaining timely proactive legal advice that helps in avoiding a dispute is only a fraction of the legal costs spent when a dispute arises.
A CBI and Oxford Economics report published in February 2021 found that the UK construction industry spent £1.27bn last year on legal services. This is 1.6% of all procurement spend and twice the level seen across the UK economy as a whole
The Risks:
Mercantile Barristers have developed a Construction Disputes Avoidance Protocol for Employers, Contractors and Sub-Contractors designed to save substantial
legal expenses.
As part of the plan, you will get 1-1 expert construction legal consultation, that will interrogate your existing Operational systems to identify areas of legal and financial vulnerability and risks; and then provide advice and guidance to enable you reduce and possibly eliminate:
Most businesses only seek legal advice and representation when a dispute has arisen and they have a crisis on their hands. This is imprudent because legal costs incurred dealing with a dispute are multiples of the legal expenses spent in timely advice to avoid that dispute.
You will get 2 hours per month with one of our specialist construction Barristers to work through the 12 areas of recurrent problems in construction projects. Working with our specialist construction Barrister, you will be guided through a process to help you close the gaps in your construction management/business process that present legal and financial risks to your business.