Construction - South Australia
The South Australian construction legal market’s volume of work, particularly in relation to non-contentious matters, has remained steady largely due to a combination of government stimulus packages, energy and resources work as well as a better than expected level of activity by developers and other principals. Were it not for the trend of larger resources entities and, inexplicably, even many of the state government entities to retain the services of the practitioners within the East Coast offices of larger national firms, the state’s construction lawyers would have been busier still.
South Australia’s construction litigation market has historically been somewhat more subdued than other Australian states. Market dynamics, in particular a limited pool of work and head contractors, has traditionally seen parties less likely to resort to litigation. Most agreed the GFC had resulted in a slight uptick in activity but more attention was focused on the potential effects of significant legislative changes afoot.
Amongst the state’s construction practices, two construction specialists lead the charge. The contrasting styles of Victor Daminato at Crawford Legal and Robert Fenwick Elliott at Fenwick Elliott Grace gained a clean sweep on front end matters while Fenwick Elliott Grace was challenged by a host of stronger local players and specialists on back end matters. Beyond these two, the state’s larger full service firms all compete with a number of other strong smaller construction focused practices.
Perhaps the most significant factor in our results is the relatively poor local showing from the typically ever-present force of Minter Ellison. That’s not to say the firm didn’t gain a mention, it did. But outside of some generalist local litigators at Minters who turn their hands to construction when the need arises it was the firm’s excellent interstate construction practices who gained favour.
Security of Payments Changes
The state’s construction litigation has often centred around the ageing concept of the Worker’s Lien but with the Building and Construction Industry Security of Payment Act 2009 having been passed through parliament things looked to set to move forward and replicate the legislative framework adopted in both the East and the West of the country.
Unfortunately an election and cross government departmental responsibility for the legislation has seen endless implementation timelines moved and most practitioners were now hopeful of a Q1 2011 implementation of the act but few were prepared to hold any form of breath in this regard.
If the experiences of industry participants in those states and the legal practitioners who serves them are replicated then the state may well see not only an increase in proceedings instructed under the Act but also a change in the way the construction teams within legal practices are structured and price their services.
3 Firms to Watch
It’s perhaps not surprising that one of the UK’s best construction lawyers’ Antipodean venture has been a success. In Fenwick Elliott Grace the globally respected Robert Fenwick Elliott, wife Jeannie Elliott and fellow Partner Tom Grace brings together three of the market’s most respected talents. There’s little doubt about the quality of the firm’s senior practitioners but success in the medium to longer term will rest on the firm’s generation of younger Partners to impress the existing guard’s following.
Fisher Jeffries’ construction practice may have lost the talent and connections of Vic Daminato to Crawford Legal but with addition of polished Freehills’ alumni Manik Meah on the construction front and the energy and resources connections of former Minter Ellison partner Christopher Darby a new player could well be emerging sooner rather than later.
Bob Floreani continues to influence as one of the South Australian Construction market’s more significant individuals. Unrivalled contacts and a genuinely likeable disposition are tough traits to follow and if FR Law’s Sean Ryan can emerge from Bob’s shadows then expect the larger full service firms to be worried.
Pricing
Prices of between $350 to $550 per hour for the market’s leading practitioners presented a significant range, one not necessarily dependent upon firm type or size but typically more closely correlated to the client and the job in question.
The vast majority of the state’s practitioners remained open to and regularly offered fixed fee and/or some hybrid of fixed + hourly rate based pricing.
The above is an abridged version of the full report. Full editorial commentary can only be found in the print edition of Doyle's Guide to the Australian Legal Profession.
Please click through to see our listing of South Australia's leading law firms in the area of construction...>>
Please click through to see our listing of South Australia's leading lawyers in the area of construction...>>
Please click through to see our listing of South Australia's leading barristers in the area of construction...>> |
