subject: Protect Your Rights [print this page] Some people state that corruption in the construction industry ended in the eighties. Recent history doesn't endorse this. Recently, some of the industrys largest and most prominent main contractors have been fined millions of pounds for rigging bids and artificially inflating prices.
For subcontractors, who regularly face unethical commercial practices, this can be even more damaging owing to the fact that many are modest 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 recurrent form of abuse that specialists face. In 2009 a study by Jim Mason, a senior lecturer at the University of West England, found 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. Main contractors stipulate this so that they can offload responsibility onto subcontracting firms.
Main contractors can hold money for petty breaches of contract and this is an especially infuriating contractual term for subcontractors. The method is open to abuse as it grants the chance to limit the cash flow of specialists as a means of leverage as usually there are no actual reasons for withholding money. Legislation is in place to finish this practice but main contractors still use loopholes to get by it.
Such practices are highly unjust and are also exceptionally counterproductive as they poison commercial relationships. It is also hard for specialists to combat them. The specialist who starts proceedings, may have to pay the main contractors and adjudicators costs irrespective of the upshot of the case. With limited cash flow relative to their bigger counterparts, this dissuades subcontractors from fighting for their legal rights. Subcontractors fear that they may not be awarded other contracts if they speak out.
Protecting the needs of small to medium sized businesses is essential in any industry. It is crucial that companies have a means to stand their ground and fight for their rights, especially when the bullying of smaller firms by their larger counterparts has proved commonplace.
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.
