 | |  | | | Pictures from the Olympic site, taken during the recent snowfall | |
Law firm reports increase in construction sector disputes following cold snap
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| 29 Jan 2010
A law firm is warning building contractors, forced to down tools because of the winter cold snap, that poor weather may not prove to be a valid reason for delays.
Mace & Jones said the construction industry is counting the cost of a bruising New Year with up to a £1bn lost in activity due to the snowfall, with the firm saying it has received a glut of enquiries relating to disputes arising from the snow.
Charles Tomlinson, head of Mace & Jones Construction and Engineering Group, said many building sites had reduced activity because of health and safety concerns caused by the heavy snow fall.
“This is a very sensitive area for both clients and contractors which could easily ignite into costly and time consuming legal disputes,” he said. “In the event of further snow fall, both parties should make it a priority to double check their contracts.”
“Although contracts can take into account exceptional weather conditions, not all do. Tight budgets may lead to clients contesting the definition of exceptional weather and whether the recent snowfall actually constitutes ‘exceptional’ weather conditions at this time of year. Clients may suspect that some contractors may use the snow as an excuse for poor performance on projects which are already behind time. It is obviously important that accurate records have been kept to prove the effects of the adverse weather conditions.”
Mr. Tomlinson added that the position with sub-contractors should also be reviewed and urged firms to take a common sense approach to any dispute to prevent damaging business relationships and piling up expensive legal bills.
Commentators have claimed the cold snap could lead to a calculated loss of between £400m and £900m for the construction industry following a drop of 3 per cent to 6 per cent in activity. |
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