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Construction, Engineering & Procurement

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With the real estate development market showing signs of increased activity, there is an obvious knock-on effect for the construction industry.  There is a growing cause for optimism, particularly in the London office market, but with the anticipated cuts in public spending there needs to be a focus on collaboration between the public and private sectors to deliver essential public infrastructure projects.  The shortage of debt finance may drive the market towards PPP-based delivery models, which will also drive an increase in the demand for robust contracts and flexibility on procurement.   

We are also seeing contractors on some projects putting in significant equity pre-construction to get schemes going, giving them a position like nor mal shareholders once the scheme takes off, with the added advantage of picking up the construction work.  In addition, where schemes are in difficulty, we are seeing contractors being asked to defer or waive payments for a period of time that they get paid at significantly higher rates - once the scheme is sold - and even get an arrangement fee.  Both trends look likely to continue, as savvy contractors with equity in the bank look to get schemes moving and to use their equity to get not only returns, but also involvement and employment for their workforce.

Highways Agency

Our Engineering, Construction and Procurement team is one of the largest specialist practices in London, encompassing both commercial and contentious expertise.  We have an unsurpassed track record of advising on major UK and international projects, acting for leading industry players such as Balfour Beatty, Great Portland Estates, Highways Agency, London Underground, National Grid, Olympic Delivery Authority, Qatari Diar and Thames Water.

Recognised by the legal directories, clients and peers as a market leader, our team provides expert advice through every stage of the construction cycle.  From procurement strategy, contract structures and negotiation of construction contracts through to professional appointments, PFI/PPP project agreements and development/funding arrangements.  In addition, we deliver proactive advice on risk management, problem solving and all forms of dispute resolution.

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Bob Maynard

Bob Maynard

BLP
Partner, Engineering, Construction & Procurement
John Hughes-D'Aeth

John Hughes D'Aeth

BLP
Partner, Engineering, Construction & Procurement

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