What does this practice area consist of?
Much like many other practice areas, construction can be divided into two distinct halves, between contentious and transactional law. The transactional aspect is known as “procurement”, while the contentious aspect is (rather creatively) known as “construction disputes”.
Procurement work involves helping clients procure and organise construction contracts, before pulling all these contracts together before commencing building work. Disputes, rather obviously involve the resolution of disputes, when things inevitably go wrong. Historically, construction has been a litigation and arbitration heavy practice; yet since the late 90s, most new contracts have contained procedures to follow in the case of a dispute. Disputes now tend to become adjudicated, following a 28-day timetable.
What are the tasks of these lawyers?
Disputes:
- Extracting detail from mountainous volumes of paperwork.
- Gathering paperwork and evidence to assist their client’s position.
- Following the contained dispute procedures in contracts.
- Where a settlement is impossible, issue, and attend proceedings with the client, usually instructing a barrister to do the advocacy.
Procurement:
- Make building site visits during construction.
- Negotiate and draft contracts for programmes of building works. Any such programme involves a multitude of parties including landowners, main contractors, subcontractors, engineers, and architects. Though this won’t be on quite the same scale as a large private equity deal, this requires extremely careful thought.
- Work carefully with real estate lawyers to tell if a client has invested inland as well as a project. This is needed to obtain planning consents and local authority certifications.
- Where land is leased or rented, liaising with the landowner’s solicitors over several contentious matters will be required.
What are the realities of the job?
- Construction work in the UK is highly dependent on EU migrant workers, and it’s concerning to note in the wake of Brexit that around two-thirds of UK construction materials are imported from the EU. Given the hard terms of the withdrawal agreement, construction output could be seriously diminished. This holds especially true when the current shortages are considered.
- However, given the promises of Boris Johnson’s government to “level up” the UK’s infrastructure, construction may be an area of major growth over the next few years.
- The arbitration will probably be a vital growth area for the UK after Brexit. London remains one of the world’s leading arbitral centres, as English law still governs many cross-jurisdictional contracts – agreements that span the Middle East, Africa, and the rest of Europe.
- Drafting contracts requires lateral thinking.
- Inside knowledge of torts and contract law is a necessity.
- People skills are fundamental. Contractors and subcontractors are direct; structural engineers live in a world of complicated technical reports; corporate types and in-house lawyers require smoother handling.
- A background in construction or engineering is a major bonus because you’ll already have industry contacts and will be able to combine legal know-how with practical advice.
Ten firms with a noted presence in this area:
- Addleshaw Goddard
- BCLP
- CMS
- DLA Piper
- Freshfields Bruckhaus Deringer
- Hogan Lovells
- Macfarlanes
- Mayer Brown
- Pinsent Masons
- White & Case
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