Contractual disputes solved
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Some argue that the days of corruption in the construction industry finished in the eighties. Recent history does not show this to be true. Some of the industry's largest and most prominent main contractors have been fined millions of pounds for rigging bids and artificially inflating prices, in only the last few years,
This can be damaging for subcontractors, who regularly face immoral commercial practices, owing to the fact that many are small businesses without the means or connections to fight their corner. John Huxtable when setting up the Confederation of Construction Specialists (CCS), found that the addition of unfair clauses in contracts was the most common form of abuse that specialists face. Jim Mason, a senior lecturer at the University of West England, found in a study in 2009 that such practices are still widespread.
Termination clauses for the most insignificant contract breaches added to contracts by main contractors are common place. These can be used by main contractors to intimidate specialist firms. Other clauses make specialists accountable for all work and property on-site, even after they have left. This is stipulated by main contractors to unjustly minimise their risk by offloading duty onto subcontracting firms.
A key, and especially bothersome contractual term for subcontractors, is the right of main contractors to hold money for trivial breaches of contract. Whilst there are genuine reasons for withholding money, the arrangement is open to abuse as it grants the chance to limit the cash flow of specialists as a means of leverage. Legislation is in place to cease this practice but main contractors still use loopholes to get by it.
Commercial relationships have been poisoned by such practices. It is also complicated for specialists to combat them. The main contractor's and adjudicator's costs may have to be paid by the specialist who starts proceedings, regardless of the result of the case. With limited cash flow relative to their larger counterparts, this dissuades subcontractors from fighting for their legal rights. Subcontractors fear that they may not be awarded other contracts if they speak out.
Small to medium businesses must be protected in any industry. In construction, where the bullying of smaller firms by their bigger counterparts has proved commonplace, it is vital that companies have a means to stand their ground and fight for their rights.
A number of companies provide support and training for construction specialists, which includes how to avoid contractual/ construction disputes and issues with main contractors and other large customers. Construction management courses ensure construction specialists are paid fairly, quickly and are not subject to unfair contractual terms.
Article Source: Articlelogy.com
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