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JULY 2014
Accordingly, a lawyer involved in construction law should address the technical problems of construction in order to understand, analyze the legal consequences resulting therefrom and expose them to the judge.
Then, to properly analyze a construction law case, it is imperative to assess how things happen or have happened.
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This gave rise to the following: • Mergers
between (acquisitions and/or merger)
• The search for new markets abroad (Africa, Persian Gulf, etc.) and therefore, the need to acquire knowledge, resources and in some cases other companies, to address these new markets
to properly analyze a construction law case, it is imperative to assess how things happen or have happened.
The lawyer must review all contractual documents, technical meeting reports and the exchanges of correspondences between the parties. Therefore, one must be meticulous and consider all these issues in great detail.
The engineers and the technicians who participate or have participated in the construction project should be met and questioned.
Of course, all of these essential steps in the procedure require time and availability.
Finally, construction law cases should be taken on as early as possible. In other words, the lawyer must intervene as soon as possible and ensure that the client manages the construction contracts efficiently and well. The lawyer can then prepare or review the drafts of letters for his client, which letters will be subsequently used in the context of proceedings, if any. This is what is known as contract management.
Finally, the lawyer must draw the client’s attention to the compliance with mandatory rules in construction law (see e.g. in subcontracting issues).
How is the M&A market within the construction industry doing since the recession?
Following the financial crisis and in particular the public debt crisis, public procurement fell in France.
Also, price competition has significantly increased between manufacturers and, as a result, many of them were consequently weakened.
Also, without being very active, the mergers & acquisitions sector is not stopped, companies are on the lookout for new opportunities (see e.g. purchase of the Belgian group Eiffage Smulders).
Do you anticipate any legislative changes in the construction sector? In particular, legislation that smoothes the way for increased M&A activity in your country?
Apparently, the development of mergers and acquisitions in the construction sector is not a high priority for the French government. However, the government has taken, and continues to take measures to promote the development of constructions, particularly housing projects. LM
Legal Focus companies
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Contact:
Renaud Dubois Partner
Email: rdubois@kramerlevin.com Tel: +33 1 44 09 46 42
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