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  • Overview

    We were appointed by a large housing association in connection with a residential development where the contractor was threatening to stop works unless paid a further substantial sum over and above the agreed contract price.

     We advised that they had no entitlement to that payment and the situation was caused by the contractor’s cash flow problems and the fact that the price was agreed during the recession with the cost of materials and labour having dramatically increased since then.

    We dealt with termination of the contractor and the need to hire sub-contractors directly to ensure the building was swiftly made wind and water tight, as well as advising on securing payment under a performance bond, answering potential indicated claims from the contractor of failure to mitigate loss by not re-hiring due to the cost of a replacement contractor exceeding the ‘enhanced’ sum demanded by the contractor in circumstances where the contractor’s continued solvency is in doubt, and ensuring the sub-contractors and the replacement contractor are employed on suitable terms.

    Securing completion of the project on a sensible basis was critical to the client and we dealt with all the relevant contentious and non-contentious issues to achieve this.

  • Related Services

    Construction & Engineering

    Project support

    Proactive legal support keeps your construction project running smoothly. Having a specialist construction lawyer on hand to help you identify and take advantage of potential opportunities and support you in facing the challenges is invaluable.

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Jargon Buster