Part one of a two-part feature taken from Lawyers Weekly 16 February 200
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The late ’90s construction boom brought with it a raft of legal work, both “front end”, such as contract development, project documentation and tendering and “back end”, such as litigation and dispute resolution. Growing areas include privately funded infrastructure projects, such as the Sydney airport rail-link - which many analysts regard as a spectacular flop - and mobile phone network systems and associated communications projects. But the shadow of a recession is looming large over the construction industry as well as over businesses worldwide. We explore some different views of how a slump would affect construction lawyers. We also talk to both in-house counsel and private practitioners on what working in the construction areas means to them. And if you thought construction (and construction law) was a males-only field, be prepared to think again! On solid foundations? The labour market for construction lawyers If a recession is in the offing, you would not know it from talking to Australia’s top recruiters of construction lawyers. The new year has ushered in increasingly urgent warnings from government officials and departments of an economic downturn. Recently, Treasurer Peter Costello, closely followed by the Reserve Bank of Australia, said the nation is facing its worst economic crisis since the Asian collapse of 1998. The debate is being conducted in such negative terms that some analysts fear a downturn in the Australian economy could become a self-fulfilling prophecy - led by already-perceived falling activity in the post-Olympic, post-GST construction industry. Without a doubt, business is worried. But have fears of a recession led to a slump in the demand for construction lawyers? Certainly not, say the recruiters, who also see little sign of demand decreasing in the near future. According to Michael Ives, private practice recruitment manager at Mahlab Recruitment, developments in the current labour market for construction lawyers have their roots in the early 1990s. Because of the recession at that time, fewer young lawyers chose to enter either the property or the construction areas of law, resulting in fewer trained specialists coming up through the ranks. With the infrastructure boom later in the decade, however, demand increased. The industry experienced a “crunch” in late 1997 and 1998 due to the lack of lawyers with four or five years of construction law experience. The currently tight labour market represents a “hangover” from that time, according to Ives, who added that quality construction lawyers are still in relatively short supply. More : infolink.com.au |