Playing into the hands of the lawyers…

Neil Edwards

The effects of the current global economic recession are there for all to see, as is its impact on the UK construction and building industry. We have seen a number of companies large and small vanish from the business, and although the number of contracts let in 2009 and 2010 are remarkably similar, the value of those contracts has leapt off the economic cliff like a lemming on suicide watch.

On the contractor’s side, spend on perceived “luxuries” such as training, health and safety and marketing are all down.

But a bigger concern is the way in which clients and, in particular (although not exclusively) public bodies have reacted to the tightening of the purse strings following the Government’s Comprehensive Spending Review.

Not only are they demanding that contractors work for less to ensure that they don’t exceed their downwardly mobile budget allocations, they are all too often scrimping on the production of pre-contract documentation. As a result, contractors are not only working for less than they were 12 months ago, they are now being burdened with increasing levels of financial risk.

The result? An unholy mess that is often resolved by the only means available – costly arbitration – with both client and contractor losing out financially in a wholly avoidable legal battle.

If clients were to pay a little more to set in place a detailed control document laying out specific demands and requirements prior to commencement of works, the contractor would know precisely what the client expected and when.

And until they realise this, the only people likely to make any money from the beleaguered industry of ours is the lawyers.

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