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Building Industry Finance, Law and Insurance
News Release from: Thomas Eggar | Subject: Complying with relevant legislations
Edited by the Buildingtalk Editorial
Team on 29 November 2007
Property developers apathetic about
legal issues
New research commissioned by law firm Thomas Eggar LLP reveals a significant level of apathy amongst property developers around the legal aspects of a development.
Thomas Eggar survey highlights worrying lack of interest in legal issues Despite increased industry regulation in recent years, a third of property developers only seek legal representation at the last possible stage of a development or when a specific legal issue arises
This article was originally published on Buildingtalk on 20 Oct 2005 at 8.00am (UK)
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Once the legal team has been briefed, Thomas Eggar's survey - independently commissioned amongst a range of property development firms - investigated the relationship between developers and lawyers.
Once again, over a third (35 per cent) prefer legal advisers to only flag up important issues and to manage the process with little or no contact.
For the remaining, more conscientious developers, construction legals - such as contracts, appointments and warranties - were rated as the legal aspect of highest concern.
Almost two fifths (39 per cent) of developers reported this as their primary legal consideration.
A further 25 per cent felt environmental compliance was most important.
John Kittow, partner in Thomas Eggar LLP's DPC division, comments on the findings: "Given the potential implications for developers who fail to comply with relevant legislations, or who don't protect their development with watertight agreements, I am amazed to see how little regard a certain proportion of the industry is paying to these issues.
"Legal problems can be very damaging and costly, especially if not handled correctly or at the appropriate time.
Legal advice should be taken as early as possible so that the lawyers involved can really get to grips with the project - anticipating issues and finding solutions before they become major problems.".
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