The survey of 165 construction companies attending the firm's recent annual construction and engineering law conference also found that 92 per cent of those questioned expected the levels of litigation in the industry to stay the same or increase over the next 12 months.

More than half (58 per cent) cited employment issues as posing the greatest litigation concern. The UK's employment laws have recently witnessed a number of changes in areas such as the transfer of undertakings, disability discrimination, national minimum wage and working time regulations. In October 2006, age discrimination legislation was introduced into UK employment law for the first time.

Around one-third (32 per cent) of companies surveyed said the threat of litigation from regulatory changes was a significant concern. Chief amongst these was in the area of health and safety. With the Corporate Manslaughter Bill expected to become law next year 25 per cent of those surveyed expect it to have a significant effect on the construction industry's health and safety record.

Richard Laudy, Head of the Construction Sector at Pinsent Masons, said : "We are now seeing the effects of legislation on an increasing regulated industry. Many involved in the industry feel that it is very much under scrutiny at present whether by the OFT, immigration authorities or Revenue because of the forthcoming changes to the CIS. A key challenge for the industry is to keep abreast of the various changes so that it can direct its focus on to the opportunities for growth in a buoyant market."

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Susie Hughes
The Editor © Hardhatter 2006