Cheaper access to litigation

We are all living in uncertain and unprecedented times due to the Covid pandemic, which not only has impacted our personal lives but also how we work and run our businesses. This is especially true the construction industry. During these troubled times it is absolutely essential that contractors ensure that they comply with their contractual obligations and furthermore that they do not allow employers to deviate from their contractual obligations, especially when it comes to payment.

At The Construction Platform (“TCP”) we undertake work on a contingency basis so that in the event that you are required to declare a dispute, you are able to do so without incurring the heavy fees that you would be charged by another law firm with huge overheads. 

So what is a contingency fee arrangement? 

Contingency fee agreements concluded between the client and attorney are regulated by the Contingency Fee Act. In essence it is an agreement that the attorney will only be paid if he/she is successful in the litigation. Payment terms depend upon what is agreed between the parties but is usually calculated as a percentage of the amount that is awarded.

“No win no fee” agreements in the construction industry in South Africa are relatively new but there is absolutely no doubt that this should be the way forward in the industry because it will give construction companies access to dispute resolution and litigation when ordinarily the high costs of litigation would usually deny them this access.

NB: Please note that this article is for informational purposes only and not for the purpose of providing legal advice. Should you require more information on this topic or any issue arising out of this please contact The Construction Platform on 011-234 2125 or enquiries@theconstructionplatform.co.za

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