construction the foundation for your successful developments
Did you know? • The value of construction disputes in the UK hit its highest ever rate in 2013, according to research from EC Harris.
“ Contractors are often much sharper on contract law than developers, which can result in a squeeze that costs time and money to the developer. You need a legal adviser who can put in place the right contracts for you, protecting your interests while still balancing the needs of a number of other parties, and then make the management of those contracts run as smoothly as possible.� Ian Reid, Partner and Head of Construction, Howard Kennedy
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Designing the right legal material Despite some well publicised high profile casualties, the resurgent UK construction industry continues to flourish, according to the Construction Products Association. The body is predicting a 10 per cent growth rate in UK construction by 2016, with the sector contributing ÂŁ11 billion to the economy. Domestic and international developers now have a renewed interest in new-build and redevelopment in the UK, investing time and money in their projects, whether in the residential, retail, offices, leisure or hotels spheres. With such high levels of investment and potential profits, developing and managing the construction process is a specialised task. The process is fraught with risks ranging from flawed designs, poor materials and workmanship, to bad weather and badly drafted contracts. Your construction lawyers need to produce the highest quality legal blueprints to help you realise your projects and avoid potential problems along the way. Our construction team has a rich history in delivering a comprehensive “life cycleâ€? service to our clients, both UK and international. Our ability to provide tight and tactical advice on setting up then administering contracts and managing risk during the build phase, allows us to work with clients through the entire process so that projects remain on target and on budget. If deadlines are missed or more money demanded, threatening you with delays and headaches. We make sure any breaches or disputes are dealt with in the most cost and time-efficient manner for you.
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Our services The team is led by Ian Reid, who has worked around the world on a diverse portfolio of construction matters, ranging from major energy and transport projects to commercial and residential developments. Ian’s legal know-how runs parallel to his market insight; he trained as an architect before qualifying as a lawyer. The team provides both non-contentious and contentious legal advice for construction clients, including developers, funders, investors, contractors, sub-contractors and consultants. Our “life-cycle” approach means that we can provide advice on all matters relating to funding, drafting, negotiation, delivery and enforcement of construction projects.
This covers advice on: • Alternative procurement strategies • Tender package preparation and the drafting of all forms of construction and development documents • Tendering and tender analysis, contract negotiation and contract award • Pro-active advice during the build phase on risk management, contract administration and dispute avoidance • Guidance through practical completion regimes and on to final account settlements • Bringing or defending claims in all forums. Our goal is to assist you to deliver your projects on time, on-budget and to specification. There are occasions when complications and disputes arise, and should any conflict not be capable of resolution through negotiation, then we act decisively to bring about the best possible resolution for you.
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Market insight “ Before the collapse of Lehman Brothers the development market was dominated by the big institutional investors and major developers. Then the global recession hit and the usual sources of funding for these players simply dried up. Contractors cut their throats and bought in work just to stay in business. As the world became a much riskier place those with money poured it into the safe haven of central London. We saw a rapid increase in a certain type of developer; wealthy individuals and entreprenuers from around the world, less reliant on bank funding but also, less familiar with British contractors and the notoriously complicated British construction contracts. Is it any surprise that commentators have pointed to 2013 as being a highpoint for construction disputes in this country and we are seeing our old friend the “global claim” come creeping out of the woodwork. I n 2014 we are now seeing developers having to rethink their strategies in an overheated London market. Contractors are able to be choosy about which tenders they respond to and reject the procurement routes they regard as being too risky. here is money to be made out there again, but it is no place for anyone T who does not know what they are doing or who is being poorly advised”. Ian Reid, Partner and Head of Construction, Howard Kennedy
Recent work
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• A dvising major UK developers on construction matters on various multi-million pound mixed use schemes across London
• A dvising several banking institutions on the construction aspects of numerous developments projects they are financing
• A dvising an Asian backed developer on all construction aspects of high end residential developments in central London
• A dvising a variety of clients ranging from contractors, sub-contractors and owners of buildings in various disputes concerning their construction projects.
Case studies Ballymore Properties Limited (Developer) Acting for Ballymore to deal with construction matters and construction contracts on various of its schemes around London such as its developments at West Hampstead, Embassy Gardens and Leamouth North. Building Owner (Acting in an adjudication, details remain confidential) Acting for the owner of a listed regency villa to successfully defend an adjudication brought by the contractor disputing the final account and claiming loss and expense and extensions of time, and recovering damages against the contractor for defective work. Engineering Contractor (Details remain confidential) Advising a Dutch engineering contractor on its design and build contract for the construction of a data centre in the midlands. Cannon Group (Consultant) Advising the leading international firm CannonDesign on its appointment in relation to significant architectural design work in Dubai.
Key contact Ian Reid Partner, Head of Construction ian.reid@howardkennedy.com +44 (0) 20 3755 5679 Key Clients Ballymore Clivedale Galliard Aldermore Bank Santander Bank
No.1 London Bridge London SE1 9BG DX 144370 Southwark 4 Tel: +44 (0)20 3755 6000 Fax: +44 (0)20 3650 7000 www.howardkennedy.com