subject: Knowing Your Rights [print this page] Did corruption in the construction industry conclude in the eighties? Recent history doesn't corroborate this. Some of the industrys 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 owing to the fact that many are small businesses without the means or connections to fight their corner, many subcontractors, regularly face unethical commercial practices, John Huxtable set up the Confederation of Construction Specialists (CCS) and he found that the most common form of abuse that specialists face is the addition of unfair clauses in contracts. 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 responsible 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.
A key, and especially infuriating contractual term for subcontractors, is the right of main contractors to hold money for trivial breaches of contract. 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 serious reasons for withholding money. Legislation is in place to stop this practice but main contractors still use loopholes to get by it.
Commercial relationships have been poisoned by such practices. It is also difficult for specialists to combat them. Unlike civil proceedings, the main contractors and adjudicators costs may have to be paid by the specialist who starts proceedings, irrespective of the upshot of the case. Smaller contractors will often not fight for their rights as they do not have as much money as a larger firm. If they cause any trouble then subcontractors fear it will stop future contracts.
Protecting the needs of small to medium sized businesses is essential in any industry. In construction, where the bullying of smaller firms by their bigger counterparts has proved commonplace, it is key 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.
