Developers face 'wave' of lawsuits from subbies and suppliers

Subbies and suppliers could slap developers with a wave of lawsuits after losing out on lucrative contracts.

Commercial law firm Emw Law warned that developers who have called a halt to housebuilding projects in the wake of the current downturn face being sued for damages for loss of profit.

They also risk getting lawsuits fro subbies who have paid the cost of bringing workers onto site, ordered materials, and partially completed works, the law firm warned.

Anna Stillman, a partner in Emw Law's construction team said: "When the market was buoyant, if a developer did breach a contract for whatever reason, suppliers and subcontractors would have been unliely to bite the hand that feeds them by suing and could probably quite easily find another job to take its place.

"Now not only are breaches going to be far more common but subcontractors and suppliers whose viability is also under threat are likely to feel that they ave more to gain by suing and far less to lose. When the terms of the contract allow them to launch a claim, they will be more inclined to do so than in the past."