No more friends in the Construction Industry
“Sadly, the construction industry is becoming more and more cut throat every day. Everyone is looking to save themselves instead of working together to get projects completed in an efficient and cost effective manner.
My suggestion that is builders really need to ensure that they are not sacrificing their bottom line and potential solvency over their current relationships with developers, subcontractors or consultants.
Builders need to:
- Stand firm when negotiating contracts upstream with developers and not give in to unfavourable terms and pricing.
- Push the trigger on Security of Payment claims if you are not being paid by the developer for extended periods of time.
- Issue contractual notices to subcontractors for delays and defects. Effective contract management is key to defending Adjudication Applications under Security of Payment.
- All consultants should have insurance in place, particularly those involved in the design process. If a consultant has not carried out their work in a proper manner, it might be worthwhile making a claim against the consultant for which their insurer could pay out.”