Property consultancy warns ‘every construction contract in the region is at risk’
Multi-disciplinary property consultancy Ridge and Partners predicts a huge increase in contractual disputes.
It said the rapid closure of construction sites and termination of contracts in response to the coronavirus is leading to disputes between contractors and clients as each side seeks to defends its interests.
Lucy Osborne, the Manchester-based partner leading the Ridge expert witness team, said: “This is unknown territory as far as dispute resolution goes.
“No contracts will have contained a clause that anticipated a global pandemic and all parties involved will be approaching this blind.
“If they can’t find the goodwill to resolve matters quickly, this will run and run,” she said.
With this in mind, the firm has expanded its expert witness and advisory services team as the North West construction industry enters a period of ‘contractual unknowns’.
Lucy said: “Delivering high quality advice is our focus, so I am delighted we have recruited two senior expert witnesses to cope with our rapidly growing caseload.”
David Pope, a structural engineer, joined the Ridge team this week and Tim Haynes, an experienced contract and claims advisor also joined the firm recently. Both have long careers in dispute resolution.
Haynes advises clients to “follow the contract”.
He said: “Every project in the North West will be impacted by this.
“Clients need to understand what they have agreed regarding extensions of time, rights to suspend or terminate and what legal support is available to them.
“Every contract will be unique and require different remedies, which of itself will create problems.
“One size will definitely not fit all.
Tim Haynes
“The issue is that nobody ever anticipated this and so clients and contractors have to get to grips with their risk profile quickly.
“Sadly, some contractors may run out of money before a resolution can be found,” he added.
Tim Haynes is a member of the Chartered Institute of Building and has long experience in claims management, advising clients on contract structure and in dispute resolution.
David Pope has a Master’s in engineering and is a Chartered Fellow of the Institution of Structural Engineers. He has international experience in structural design and investigation.
