The Construction Industry in 2021 – Legal disputes on the rise

While many organisations have high hopes that the New Year will be an improvement compared to 2020, it is important to understand new challenges looming in 2021. One of these hurdles is a projected rise in contractual disputes.

The Construction Leadership Council (CLC) has projected that disputes are likely to increase due to the difficulties and delays caused by the coronavirus pandemic throughout most of last year. These disputes may call for entitlements for additional time to complete projects. There may be particular contention concerning financial losses and other expenses related to projects affected by the pandemic.

According to The CLC’s research, the second and third quarters of 2020 consisted of increased collaboration between parties amidst the crisis. However, commercial behaviour may become more contentious in the future for several reasons, such as;

  • Increasingly complex disputes
  • Tightening cash flow  
  • Stricter management of existing contracts
  • Companies taking a view on their risk allocation for new contracts

Firms are advised to be diligent in their record-keeping. If a dispute is brought against an organisation, it will be best positioned to negotiate if it has evidence to prove the extent to which the pandemic affected the project, as well as the actions that were taken to minimise the losses. Furthermore, organisations should prioritise implementing the proper contingencies and precautions to limit any further delays or losses related to the pandemic.

What can I do to protect my business?

legal expenses policy is a cost-effective solution that will compliment your existing commercial insurance arrangement. Paying for advice from a solicitor can be costly. A legal expenses policy provides a legal helpline for you to use whenever you need it most. Should action need to be taken, you will have cover up to a certain limit at your disposal.

At Alan & Thomas, we can offer you a comprehensive legal expenses policy that starts at just £90.00 including insurance premium tax.

If you would like more information or simply want a quote, fill in the form below and one of our commercial insurance team will be in touch.

What else can commercial legal expenses cover help with?

  • It provides a tax and Legal Helpline for when expert legal advice is needed quickly
  • A dispute with an employee escalates and can’t be resolved
  • A notice of an enquiry into the tax or VAT returns of your business is received
  • A Health & Safety inspection ends with a threat to prosecute your business
  • A neighbouring business restricts access to your premises
  • Your business attracts adverse publicity which threatens to damage your reputation and you need PR advice

With firms already having to adjust to Brexit changes and manage the potential end of certain government support programmes, the expected rise in legal disputes may even further exacerbate financial stress. As such, it's of the utmost importance that organisations are diligent in managing any current disputes, while also minimising their risk for any future issues.

Now is also a good time to re-evaluate your current construction insurance programme. Take a look at our website in more detail to see what Alan & Thomas can do to support your business during this time.

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Get in contact

Talk to the A&T Commercial Insurance team today to talk about the insurance arrangements for your construction business.

01202 754900