Kate Kirby, Construction & Infrastructure Partner at global legal business, DWF, comments on the CIPS/IHS Markit construction PMI figures for March 2020. She said:
"The construction industry is naturally cyclical but the COVID-19 pandemic has taken it by surprise after things had started to improve over the recent months.
"For the near future, the market is likely to become more contentious. Contractors will be alive to putting a line in the sand in relation to potential extension of time claims. Employers and contractors may seek to terminate contracts with a view to re-pricing jobs when on the other side of this.
"They may also question whether the UK will need to look to a more localised supply chain for construction materials and workforce in the future.
"Currently it is very difficult to predict what the future will bring but there will hopefully be brighter times ahead."