For an industry that already operates on low margins, the legal costs of construction disputes can be disproportionate due to the complexity of the issues raised and the extensive documentation that can be involved. However, the extensive reforms to litigation costs that came into force on 1 April, inspired by the recommendations of Lord Justice Jackson, could make a real change to the way in which construction companies pursue claims. One of the most significant aspects of these reforms is the introduction of damages-based agreements (DBA), a type of "no win, no fee" arrangement under which the solicitor is only paid if the case is successful and receives nothing if the case is lost.
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