Increasing regulation means construction firms are regulars in court

Half the UK’s construction companies have faced the threat of court action in the past 12 months, according to research.

A survey of 165 construction companies attending a construction and engineering law conference organised by law firm Pinsent Masons also found that 92% expected levels of litigation in the industry to stay the same or increase over the next 12 months.

More than half (58%) cited employment issues as posing the greatest litigation concern.

One-third (32%) of companies said the threat of litigation from regulatory changes was a significant concern, with health and safety being the main area of concern.

With the Corporate Manslaughter Bill expected to become law next year, a quarter for firms surveyed expect it to have a significant effect on the industry’s health and safety record.

Richard Laudy, head of the construction sector at Pinsent Masons, said: “We are now seeing the effects of legislation on an increasingly regulated industry. Many involved in the industry feel that it is very much under scrutiny at present.

“A key challenge is to keep abreast of the various changes so that it can direct its focus on to the opportunities for growth in a buoyant market.”

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