header-logo header-logo

Contractor claims surge

15 January 2009
Issue: 7352 / Categories: Legal News
printer mail-detail

Construction

The credit squeeze is being blamed for a rise in construction claims.

In the third quarter of 2008 there were 32 construction cases filed- a 10% increase on the same quarter in 2007.

Many disputes have arisen between contractors and developers, as both parties have felt the effects of the economic slowdown.

Stuart Nash, a partner in McGrigor's construction department, says the relationship between the parties has changed.

"When a developer tells a contractor that they will not pay the full bill for work as they feel the contract has not been properly fulfilled the tendency has been for the contractor to accept that through gritted teeth. They reasoned that there was no point in getting into an acrimonious court dispute with a client that should be their future source of work. The credit crunch has changed all that.

"With the slowdown in the construction sector contractors worry that there might not be a 'next project' from that client so they have less of a motivation to make concessions over their bill. The contractors figure that if there isn't going to be any guarantee of repeat business why shouldn't they try to force their client to pay in full?"

Nash also believes that it will be the firms which are suffering financially which will face the most claims. "If you suspect that your client isn't going to be aroudn for ever you are going to be eager to pursue them as soon as possible" he adds.

Issue: 7352 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll