I n payment disputes, lawyers play a critical role
Scope Creep
Another common issue in construction projects is the problem of scope creep, where the project’s scope expands beyond the original plans. Construction projects, particularly large-scale projects, often evolve as the project progresses – clients may request alterations to the specification, or unforeseen factors mean that changes to the scope have to be made. These can lead to unexpected cost and delay: the HS2 Phase 1 (London to Birmingham) project was originally forecast to cost between £15.4 billion and £17.3 billion, but by 2023, HS2 Ltd’s projected costs had risen to between £49 billion and £57 billion. Whilst this is an extreme example, scope creep on even the smallest construction projects can significantly impact on the finances of both employers and contractors. Solicitors can help manage the risks associated with design changes by drafting contracts that include clear provisions for handling variations in the project scope. These provisions should specify how changes will be approved, how costs will be allocated, and how any additional time required will be managed. When disputes arise, we can provide representation in negotiations or litigation and, where relevant, help to ensure that the project stays on track and within budget.
in advising on and enforcing
statutory payment mechanisms, which can help resolve payment disputes.
Payment Nightmares
Payment disputes are one of the most common and contentious issues in construction projects. Disagreements over payment can arise from a variety of sources, including non-payment, underpayment, or disputes over the valuation of work completed. These disputes can quickly escalate, threatening the financial stability of the parties involved and leading to delays in project completion. In payment disputes, lawyers play a critical role in advising on and enforcing statutory payment mechanisms, which can help resolve payment disputes, including the use of adjudication, which is a quicker and less costly alternative to court proceedings. Lawyers can also rep- resent clients in negotiations or litigation to ensure that they receive the payment they are entitled to or, conversely, that they do not pay more than what is fair.
jonathan.mahony@haroldbenjamin.com
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THE LEGAL CORNER MAGAZINE | ISSUE 009 OCTOBER '24 | HALLOWEEN EDITION HB 22
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