Litigation Funding for Construction & Infrastructure Disputes
Major construction and infrastructure projects can involve substantial financial commitments, complex contracts and costly disputes. Litigation funding may help eligible businesses and claimants explore ways to pursue a legal claim while managing the financial demands of proceedings.
Litigation Funding Worldwide facilitates introductions to potential third-party funding providers for qualifying commercial disputes, subject to the facts of each matter and the provider's assessment.
Where Construction & Infrastructure Disputes Can Arise
Construction disputes can involve multiple contractors, consultants, developers, investors and public-sector entities. The contractual and technical issues can be complex, and the financial consequences may extend well beyond the project itself.
Construction Contract Disputes
Potential claims involving contractual performance, scope changes, payment obligations, termination, breach of contract and disagreements over project responsibilities.
Project Delays & Disruption
Disputes concerning delayed completion, extensions of time, disruption costs, liquidated damages and responsibility for project overruns.
Unpaid Work & Cost Overruns
Potential claims relating to unpaid invoices, disputed valuations, variations, additional works, cost escalation and payment under project agreements.
Engineering & Defective Works
Disputes involving design responsibilities, engineering services, specifications, alleged defects, project performance and remedial costs.
Infrastructure & Development
Potential commercial disputes arising from transport infrastructure, utilities, public-private partnerships, large developments and project concessions.
Construction Arbitration
Eligible disputes may involve domestic or international arbitration under applicable contractual rules, including complex multi-party proceedings.
Funding Considerations for Project Stakeholders
Construction and infrastructure disputes can affect a range of commercial stakeholders. Depending on the claim and the funding provider's criteria, several parties may wish to explore potential funding options.
- Construction companies and contractors: consider options for pursuing substantial unpaid or disputed claims.
- Developers and project owners: explore potential funding in connection with contractual or project-related claims.
- Engineering and professional services firms: consider whether a substantial commercial dispute may be suitable for third-party funding.
- Law firms and legal teams: explore potential funding for eligible client matters, subject to applicable professional rules.
- Investors and project partners: assess potential options for disputes arising from joint ventures, concessions or commercial agreements.
What might a funding provider assess?
Funding providers typically conduct their own legal, commercial and financial assessment. Depending on the matter, relevant considerations may include:
- The contractual basis of the claim and supporting documentation.
- The estimated claim value and potential recovery.
- Legal fees, expert costs and expected duration of proceedings.
- The parties involved, jurisdiction and enforceability of a potential award.
- The funding structure sought and the provider's investment criteria.
Meeting broad criteria does not guarantee that a provider will offer funding.
Explore Funding Options for Your Dispute
The most appropriate structure depends on the stage of the proceedings, the funding requirement and the circumstances of the claim. These are potential routes to explore, not guaranteed products or offers.
Legal Costs Funding
Potential funding towards approved legal fees, expert reports and other specified costs associated with pursuing an eligible construction claim.
International Arbitration Funding
Third-party funding may be considered for eligible construction or infrastructure disputes resolved through international arbitration.
Judgment & Award Enforcement
Where a judgment or arbitral award has been obtained, potential funding may be explored for eligible enforcement and recovery proceedings.
Manage Legal Costs Without Losing Sight of the Project
When a major project becomes the subject of a dispute, legal expenditure can compete with operational needs, working capital and other business priorities. Litigation funding may offer an alternative way to finance eligible proceedings.
Depending on the terms, a suitable arrangement may help a claimant pursue a dispute without funding all approved legal costs directly from its own resources.
Understand the commercial trade-offs
Funding is not free capital. A funder's return, the costs covered, control provisions and other contractual terms can materially affect the financial outcome of a successful claim.
Some agreements are structured on a non-recourse basis, meaning the funder's return depends on a qualifying recovery. The exact position, including any other costs or liabilities, depends on the agreement and applicable law.
Independent legal and financial advice can help you assess the suitability of an arrangement.
From Initial Enquiry to Funding Assessment
LFW helps facilitate introductions to potential funding providers. The process and information required will depend on the nature and stage of the dispute.
Share the Overview
Outline the dispute, the relevant parties, jurisdiction, project context and estimated funding requirement.
Initial Consideration
Consider whether the broad characteristics of the claim may align with potential funding criteria.
Provider Due Diligence
Where appropriate, a potential provider may request further case information and conduct its own assessment.
Terms & Decision
Any funding proposal is subject to the provider's decision, agreed terms and completion of its requirements.
Construction Litigation Funding FAQs
Answers to common questions about exploring funding for construction, engineering and infrastructure disputes.
Can construction disputes qualify for litigation funding?
Some substantial construction and infrastructure disputes may be suitable for third-party funding. Providers assess each case individually, considering factors such as the merits of the claim, supporting evidence, potential recovery, legal costs, jurisdiction and the provider's investment criteria.
Can litigation funding cover unpaid construction invoices?
Potentially, depending on the circumstances. A provider may consider certain substantial contractual payment claims, but eligibility depends on the legal basis of the claim, evidence, recoverability, costs and other assessment criteria. Funding is not available for every unpaid invoice or commercial disagreement.
Can a construction arbitration be funded?
Third-party funding may be available for certain domestic or international construction arbitration matters. The relevant arbitration agreement, rules, jurisdiction, claim economics and applicable legal requirements may affect the assessment.
Can funding be used for project delays or cost overruns?
Claims relating to delays, disruption, variations or cost overruns may be considered where there is a legally supportable claim and the matter meets a provider's criteria. The contractual allocation of risk, evidence of loss and likely recovery may be relevant.
Can litigation funding help with enforcement of a construction award?
Some providers consider eligible judgment and arbitral award enforcement matters. They may assess enforceability, the location of assets, recovery prospects, jurisdiction and the anticipated costs of enforcement.
Does Litigation Funding Worldwide provide the funding directly?
Litigation Funding Worldwide facilitates introductions to potential third-party funding providers. Each provider conducts its own assessment and makes its own decisions about eligibility, terms and whether to proceed.
What information should I prepare before making an enquiry?
A brief overview of the dispute, the parties, the relevant contracts, the jurisdiction, the current stage of proceedings, the approximate claim value, estimated legal costs and funding sought can help with an initial discussion. Avoid sharing privileged or confidential documents until a suitable secure process has been agreed.
Exploring Funding for a Construction or Infrastructure Claim?
Tell us about your dispute and the funding support you are considering. We can explore whether an introduction to a potential funding provider may be appropriate.
This page provides general information only and is not legal, financial or investment advice. LFW facilitates introductions to potential funding providers and does not guarantee funding availability or a legal outcome. Any funding is subject to provider assessment, applicable law and executed agreements.