The difference between claims funding and litigation funding
No doubt by now you have heard us refer to our claims funding initiative and its unique place in the construction claims market. The reason that it’s unusual is because it funds the early stage of the claims process, putting together the materials and processes with a view to reaching a resolution at mediation.
Litigation funding is more widely available, and has become a fairly accepted mode of practice in construction claims. However, by the time a claim reaches this stage tensions are running high, relationships are often irretrievably damaged and time will have dragged on causing often terminally destructive delays and cost overruns to a project. Perhaps most frighteningly of all however, once a claim reaches litigation the outcome is both largely beyond your control and it is final. There is no room for compromise, and just because you have right on your side, or think you do, doesn’t mean you will win.
Saving money early on can cost a lot in the long term
No one wants a claim to go as far as litigation, but it is surprising how easily that can happen if the earlier stages of dispute resolution are not managed thoroughly, strategically and professionally. However, doing the earlier, and usually more palatable, option of resolution through mutual agreement or mediation after careful and reasonable analysis of the claim well, often involves no small expenditure from both sides.
It takes a significant amount of time and due diligence to prepare and present a claim well, and the money needed for the right talent is cash that on balance people don’t have. Or, even when they do have it, the spend is problematic as it will negatively impact the bottom line for the project at hand. However, not doing it is far more likely to lead to the more costly and damaging escalation to litigation and arbitration.
A claims funding solution for the modern construction market
Construction companies and subcontractors have historically struggled to access funding to go through the resolution process properly. It seemed to us, that given claims are a fairly common occurrence on construction projects and part of the risk that contractors undertake, a realistic solution to funding claims has been necessary.
This was the foundation of thought that led to our financing fund, Quantura. Through it, Tungsten Capital has been providing construction companies and subcontractors with a unique method of funding and developing commercially viable construction and engineering entitlement claims.
Since the beginning of 2020, we have expanded this service to make it available in different global territories. This has included alliances other carefully selected construction industry consultants with in-depth regional market knowledge. Most recently that has included BKAsiaPacific in South East Asia, HPR International Project Consultants in South Africa, Staveley and Partners in Ireland, and BFC Consulting in Australia.
If you would like to find out more about our claims funding services for your project, contact us any time or follow the link below for further information.