Sector Focus: Construction market

With the government putting infrastructure at the centre of its economic recovery plan and accelerating over £5billion of projects, the Construction industry has cause for optimism over the next 12 months. That being said, there are still numerous issues in the current climate which are likely to affect the impact of this ambitious strategy.

For instance, a recent survey conducted by quantity surveying firm Turner & Townsend found that 1 in 3 Construction contracts are not fit to address the effects of notifiable Covid-19 events (such as lockdowns), leading to a significant amount of confusion over liabilities for delays incurred as a result of these. This has, in turn, led to a significant increase in the number of contractual disputes since the start of the pandemic. This has also led to an increased desire for clarity on the part of clients, both with regard to existing and future contracts, meaning that the wording of clauses likely to be impacted by future Covid-19 events (such as force majeure) is crucial.

This, coupled with the substantial increase in Construction Insurance premiums since the beginning of lockdown, has also led to a broad and deep review of exactly what is and is not covered by the unavoidable delays caused by the pandemic, and what these increased premiums are likely to mean for the industry as it gears up for the plan to “build, build, build” out of the current economic conditions.

Appetite for senior individuals within Construction has consequently increased, with demand arising for individuals with both contentious and non-contentious experience. This increased demand has also come from right across the market, with firms seemingly keen to ensure that capacity matches increased demand for advice, particularly at partner level.

Current opportunities include:

• Non-Contentious Construction Partner – growing national practice
• Contentious Construction Partner – International practice renowned for Real Estate work
• Construction Arbitration Partner - leading International firm
• Contentious Construction Partner – growing London practice with strong offering in hotel and leisure sector

We have long held experience within these areas and can provide true market insight. Please do get in touch for a confidential discussion.