The Construction Industry in 2021 – Legal disputes on the rise


While many organisations had high hopes that the New Year would be an improvement to 2020, this year is set to present some more new challenges. One of these hurdles is a projected rise in contractual disputes.

Growing tensions in the construction industry

The Construction Leadership Council (CLC) has projected that disputes are likely to increase in 2021. This is due to the difficulties and delays caused by the coronavirus pandemic throughout most of last year. These disputes may call for entitlements for additional time to complete projects. As a result, there could be financial losses and other expenses related to projects affected by the pandemic.

If you have a business in the construction industry and need help in regards to construction insurance, contact us. We stay up to date on current regulations and can provide you with the latest industry news. Not only this, but we can offer you an improved builders insurance or construction insurance plan. This will ensure you have the right cover for these types of circumstances.

2021 Predictions for the construction sector

According to The CLC’s research, the second and third quarters of 2020 consisted of increased collaboration between parties amidst the crisis. However, commercial behaviour may become more contentious in the future for several reasons. These reasons could include:

  • Increasingly complex disputes
  • Tightening cash flow  
  • Stricter management of existing contracts
  • Companies taking a view on their risk allocation for new contracts

Firms are advised to be diligent in their record-keeping. If a dispute is brought against an organisation, it will be best positioned to negotiate. This is if it has the evidence to prove the extent to which the pandemic affected the project. As well as this, it should prove that there were actions taken to minimise the losses. Furthermore, organisations should prioritise implementing the proper contingencies and precautions. This is to limit any further delays or losses related to the pandemic.

What can I do to protect my business?

legal expenses policy is a cost-effective solution that will complement your existing commercial insurance arrangement. Paying for advice from a solicitor can be costly. A legal expenses policy provides a legal helpline for you to use whenever you need it most. Should action need to be taken, you will have cover up to a certain limit at your disposal.

At Alan & Thomas, we can offer you a comprehensive legal expenses policy. This starts at just £90.00 including insurance premium tax. Our team of independent insurance brokers can also advise you on the best course of action to take if you need further advice.

If you would like more information, fill in the form below and one of our commercial insurance team will be in touch. You can also get a builders insurance and construction insurance quote online.

As part of your commercial insurance plan, a legal expenses policy can help with a variety of problems, such as when:

  • A tax and Legal Helpline for when you need expert legal advice promptly.
  • You cannot resolve a dispute with an employee and it escalates.
  • A notice of an enquiry into the tax or VAT returns of your business is received.
  • A Health and Safety inspection ends with a threat to prosecute your business.
  • A neighbouring business restricts access to your premises.
  • Your business attracts adverse publicity which threatens to damage your reputation and you need PR advice.

Firms are already having to adjust to Brexit changes and manage the potential end of government support programmes. Because of this, the expected rise in legal disputes may create even more financial stress. As a result, it's of the utmost importance that businesses are cautious when dealing with any current disputes. Risk management should also be taken into consideration to avoid any future issues.

Re-thinking your builders and construction insurance plan

Has it been a while since you looked at your construction or builders insurance policy? Now is a good time to re-evaluate this and whether you have the right cover in place. We advise you to review your current construction insurance programme sooner rather than later. If you realise you need a legal expenses policy, contact us and we can arrange this for you. Call 01202 754 900 or email to get in touch with us today.

To find out more about our range of commercial insurance plans, take a look at our website in more detail. As independent insurance brokers, we will do the best we can to support your business during these unprecedented times.

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Talk to the A&T Commercial Insurance team today to talk about the insurance arrangements for your construction business.