After many years of progress in the construction industry, times are changing, and there are more conflicts in construction. The number of bankruptcies is increasing, and several large construction companies have recently gone bankrupt. It is reminiscent of the time around the financial crisis. What does this mean?
Firstly, this means more conflicts between the client, the main contractor and subcontractors. Both in connection with the conclusion of the contract, during construction and especially after the construction has been handed over. We have seen it all before. Unfortunately.
The client becomes more reluctant to just pay if there is a risk that the contractor will go bankrupt during construction. The contractor becomes more aware of getting his money on time so that he can afford to pay his own bills, etc. The main contractor will try to get a discount from the subcontractor to cushion his own business, etc.
As a contractor or tradesman, you should already be preparing for the changed market conditions. You should prepare for more lawsuits and arbitration cases, both about payment and about defects – real or fictitious. The best thing you can do to protect yourself is to take out a legal aid insurance. With legal expenses insurance, you are guaranteed that your expenses in conducting a lawsuit or arbitration case will not run out of control. Many times, money has been lost because you simply could not afford to go to court to get the money you are entitled to. With legal expenses insurance, you do not have to worry about the costs of a lawsuit.
When conflicts arise in construction – and they happen even to the best and most skilled craftsmen – you need the right advisor to guide you through. At Paragraf Advokaterne, we work daily with both private and public construction projects, and we have more than 15 years of experience with construction law.
If you are facing challenges with a construction project, whether it is entering into a contract, alleged defects or non-payment, we have the lawyers to advise you in the best possible way. Contact us for a non-binding chat about your situation.
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