Construction & Engineering

Freeths has a team of around 30 construction and engineering law specialists. Our team covers both the “front end” of projects, drafting and negotiating the documents, and dealing with the disputes which sometimes arise on construction projects, whether via negotiation and settlement or some more formal dispute resolution procedure.

The many issues the construction and engineering sector has had to deal with since Brexit and COVID and the invasion of Ukraine (cost inflation, labour shortages, particularly skilled labour, recession, political uncertainties, to name but a few) have created stresses within the sector. The rising number of contractor insolvencies being one obvious symptom of this.

Construction and engineering projects are still going ahead and are benefitting both the UK as a whole and the companies involved in the projects. Both customers for new projects and those delivering new projects have opportunities to seize, but the levels of risk are higher than in more normal times. To avoid the worst of the risks and maximise the opportunities, you need to focus on:

• careful set-up of projects, including well thought out advice on the procurement structure, well drafted and negotiated contracts, and clear focus on payment profile, payment security (bonds, guarantees, retentions, etc); and
• prompt responses to any signs of stress – using the contractual machinery properly, early engagement with a client or supplier who seems to be struggling, and adopting creative solutions to deal with problems before they become critical.

Our Construction & Engineering team cover all aspects of the built environment and process plant, from infrastructure to commercial and residential buildings, via offices, retail, logistics and production facilities. Every building, engineering and process plant project has its unique challenges and risks, and you will benefit from a large and specialised legal team that knows exactly what it’s doing.