The amount spent on legal disputes has jumped by a third in the UK over the past year. Why are construction firms still so keen to spend on litigation?
You鈥檙e in a new relationship and it seems perfect. You understand each other completely and the very idea of being at loggerheads seems impossible. But, sadly, not every relationship stays that way and whether this refers to two people or a number of companies, the truth is that when embarking on a new venture many of us do not give much thought to contingency plans for when things don鈥檛 work out.
This familiar problem now appears to be even more pertinent to the construction industry, according to research on disputes by EC Harris published last month. This research suggests the amount of money being spent on construction disputes around the world is on the rise. EC Harris highlights the UK and Middle East as particular hotspots, with claim values rising by 35% and 104% respectively over the last 12 months. The ongoing case between Cambridge council and contractor Bam Nuttall over the construction of a 拢151m busway indicates the sorts of multimillion-pound sums at stake - the council originally sued for 拢54.7m and Bam Nuttall鈥檚 counter-claim is for 拢43.1m.
So why is construction