Construction Dispute Litigation Funding
Construction projects generate complex, high-value disputes. When defective work, payment failures, or delays result in significant losses, litigation funding provides businesses with the capital needed to pursue claims without impacting cash flow or project delivery.
What Types of Construction Disputes Can Be Funded?
Litigation funding covers defective workmanship claims, payment disputes, delay and disruption claims, professional negligence against architects or engineers, breach of contract, adjudication enforcement, and bond or guarantee disputes in the construction sector.
Litigation funding is available for a wide range of construction disputes affecting developers, main contractors, subcontractors, and suppliers:
- Defective workmanship claims: Pursuing contractors for substandard construction, design failures, or building defects
- Payment disputes: Recovering unpaid amounts, disputed valuations, or retention releases
- Delay and disruption claims: Recovering losses from project delays, prolongation costs, or acceleration expenses
- Professional negligence: Claims against architects, engineers, surveyors, or project managers
- Breach of contract: Variations, scope disputes, termination claims, and warranty breaches
- Adjudication enforcement: Funding to enforce adjudication decisions through court proceedings
- TCC litigation: Complex disputes heard in the Technology and Construction Court
How Construction Litigation Funding Works
Construction dispute funding is typically provided on a non-recourse basis, meaning you only repay if your claim succeeds:
- Case assessment: Submit your construction dispute details, technical reports, contract documents, and legal opinions
- Due diligence: Funders review merits, quantum, defendant's ability to pay, and technical aspects with expert input
- Funding offer: Receive a funding proposal detailing amount, terms, and return structure (typically 20-40% of recovery)
- Capital deployment: Funder pays all legal fees, expert costs, court fees, and disbursements throughout the case
- Case resolution: Upon settlement or judgment, funder receives their return from proceeds; you keep the balance
If the case is unsuccessful, you owe nothing. This makes funding particularly attractive for construction disputes where outcomes can be uncertain due to technical complexity or contractual interpretation issues.
Why Construction Disputes Benefit from Funding
Construction litigation is uniquely suited to third-party funding for several reasons:
- High legal costs: Construction disputes require expensive expert evidence from engineers, quantity surveyors, delay analysts, and technical specialists
- Cash flow protection: Businesses can pursue claims without diverting working capital from active projects or operations
- Long timelines: Construction disputes often take 18-36 months to resolve; funding removes the financial burden during this period
- Balance sheet benefits: Litigation funding is off-balance-sheet financing that doesn't affect credit facilities or banking covenants
- Risk transfer: Funders absorb the financial risk of losing, allowing businesses to pursue strong claims with confidence
Many construction companies use funding strategically to pursue multiple claims simultaneously or to enforce adjudication awards against defendants who refuse to pay.
Estimate Your Construction Claim Funding
Use our funding calculator to estimate the capital available for your construction dispute and understand potential returns. Get an instant assessment based on your claim value and legal costs.
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Related Resources
Ready to Fund Your Construction Dispute?
Audley Capital connects construction businesses with specialist litigation funders who understand technical disputes, adjudication processes, and TCC proceedings.
