The construction industry is the foundation for much of Australia’s economy, generating around 9% of national GDP, or $360 billion in revenue as of April 2020. With more than 360,000 businesses operating in Australia’s construction industry, it’s not surprising that some of them end up in court. When you’re working in an industry that’s as complex as construction, and where the stakes are as high financially, you need to know that professional lawyers who understand the industry are there to help you navigate your way through a project without hitting any legal rocks. But before you take those first steps towards hiring your construction lawyer, here are five key things you should know first.
1. Construction covers a range of specialisms – so does construction law
The word construction makes some people think of a monolithic industry, but insiders understand it is really an umbrella term covering a wide range of different sectors and specialisms coming together to work on one or more project. Each of these different moving parts – from architecture to bricklaying, plumbing to electrics – creates its own legal jeopardies.
That means your work could become subject to a wide range of legal areas, including contract law, real estate law, insurance law, environmental law, and more. To add to the complexity, you need only assess the current status of the construction industry in Australia, which has seen some projects run into trouble due to economic shockwaves even as the Government has supported the industry with large stimulus packages. If you have many legal vulnerabilities and are living in a turbulent economic period, the chances for legal disputes increase and it is impossible for even the most astute business owner or project manager to keep on top of all the different risks. Fortunately, that’s where a reliable construction lawyer steps in, whose sole job it is to stay on top of these complexities and the latest developments.
2. What construction lawyers do – and what they don’t
Construction lawyers can support large companies, property owners, and even individuals – essentially any and all parties who are involved in the construction project or process. In fact, with the growing demand for construction lawyers across the country, it’s not uncommon for some of the larger construction companies to hire their own in-house lawyers.
Although payment disputes are one of the more common pain points where a construction lawyer gets involved, there are numerous other times they are worth their weight in gold. Your lawyer isn’t there to manage or control your project, but they should be your first point of call for any big decisions that may pose legal risks. That often means all big decisions. They have the knowledge and experience to help you work through any legal challenges you might face. Whether it’s a disagreement overpay, a claim concerning incomplete work, a contractual inconsistency, or an insurance dispute – a construction lawyer will be there to fight your corner.
3. When you need a construction lawyer – and for how long
Unlike criminal lawyers, for example, who are traditionally hired when they’re needed, the best time to hire a construction lawyer is before your project officially starts. Generally speaking, the most effective way of utilising your lawyer is ensuring they’re helping you avoid any problems before they come up. Leaving the recruitment process to the day you’re faced with a dispute can make dealing with that dispute much more challenging, more costly, and ultimately will take your attention away from the project you’re working on and your business’ ultimate success.
Construction lawyers can stress test the foundations for a successful project and be a huge source of support throughout the process. Here are just a few of the areas you may need a lawyer’s help with:
- Ongoing contractual agreements and insurance cover
- Property law and planning approvals
- Licensing and permits
- Employment law and workers’ compensation
- Negligence, personal injury and litigation
- Change orders, waivers and claims
- Payment disputes and disagreements over completed work
A good construction lawyer will help protect your interests throughout a project, from planning to active construction to completion.
4. What to look for in your construction lawyer – and what to avoid
Whether your project is a large property development in the city, or a more personal project such as home renovations, hiring the right construction lawyer is an essential step in the process. Before you jump into any decisions, consider what you need from your lawyer and what kind of background they should have.
Aside from the obvious – education and qualifications – it’s worth bearing in mind that lawyers have varying degrees of experience in the area of construction you might be working in. When you’re starting a new project, you’ll want someone familiar with the same type of construction project so they’re better able to guide you through the journey and won’t be overwhelmed if things go awry. Research what legal battles they may have fought, what their success rate is, what past clients say about them, and avoid those that have any proverbial ‘red flags’ against their name.
Since they can vary hugely in fees, it may be worth your while to weigh up the return on investment you want from your lawyer. While it may be tempting to go for the cheapest option, sometimes paying more for better and more effective cover when things go wrong is the better investment.
5. How to prepare for your new construction lawyer – before you make the hire
Once you’re set on who to hire as your new construction lawyer, there are ways you can prepare to make the onboarding a more manageable process, particularly if you’re already partway through your project. Some of the best ways you can prepare are keeping everything documented and ensuring contracts are in writing with signatures, organising your paperwork and contracts so they’re accessible and available upon request, and working with your team to prepare any contract notices or follow up documents that you may want your lawyer’s advice on. Hit the ground running to minimise potential problems and to get the most value out of your construction lawyer.
Think these five steps through and you will be in the position you want, ready to build something truly substantial and successful, while being sure you aren’t creating a legal house of cards at the same time.
Who is Lazarus Legal?
A trusted Construction Lawyer can be the ultimate difference and differentiating factor for your construction or property development business. At Lazarus Legal, we work with a range of clients from small developments clients to large scale, corporate and government clients working on major commercial and residential developments including retail, aged care, recreational, education to name a few. We’ve had the opportunity to consult and help our clients over the years across a wide range of construction and building disputes.
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Barry Lazarus
We’d be lying if we told you that this bloke isn’t the big honcho of our team, but his name is a dead give-away. The founder of Lazarus Legal, Barry Lazarus is an old school, tough as nails lawyer. They don’t forge litigators like this anymore. With decades of experience in both Australia and South Africa, his wisdom is as renowned as his name.
