Arbitration Saga For Small And Medium-Sized Subcontractors In The Construction Industry

Small and medium-sized subcontractors often find themselves unable to recover monies owed to them by main contractors due to the high costs involved in legal proceedings. We explain below what steps you can take for a more positive outcome.

Introduction

Subcontractors, chiefly operating in the construction industry, frequently visit our firm with gloomy faces expressing their anger at main contractors who have failed to pay monies due upon completion of the project as per their clearly agreed contractual terms.

As our lawyers analyse the strengths of the client's case, we often find that they have honoured their obligations and that payment of their monies is unconditionally due. Reading through the contractual documents, we often further discover that the client has agreed to arbitration as a dispute resolution mechanism, which will cost them a substantial amount of the claimed amount, making it virtually unaffordable to pursue their claim. And here lies