The need for claims funding in South Africa
Last month, Tungsten Capital launched an official alliance with HPR Project Consultants to bring our claims funding service to clients in South Africa. As a global organisation, you may ask why we have not simply targeted the market ourselves, but we know enough to know that particular regions require not just industry knowledge, but specialist regional understanding that really understands the nuances of the market.
A highly respected claims consultancy in South Africa
HPR Project Consultants are experts within their field. A highly respected organisation operating from Johannesburg, they are an all female team offering practical and professional advice and support for project owners and contractors in meeting the unique challenges of claims in the South African construction industry, which saw a rise in demand following a growth in construction around the World Cup in 2010.
The construction industry in South Africa
The industry has been through a number of changes since then, and following the influx of many expat contractors for a while, there became a growing need for local talent to help navigate disputes. HPR was set up with a view to being a boutique claims consultancy built on local knowledge and talent. They have worked on large government projects as well as with independent builds, and as the margins are increasingly squeezed for contractors, the need for their services is higher than ever.
The level of risk for contractors in South Africa has, in part, contributed to a much more litigious working environment. Meanwhile, the small margins mean that many contractors will try to resolve claims themselves and ultimately end up losing not just the dispute, but possibly their companies as well. HPR is sympathetic to the need of individuals with valid claims and the need to support them in seeking justice, not simply on point of principle but in order to save their livelihoods as well. This is where our Quantura service can be game changing for the right contractors when they have valid claims.
“There are valid claims in South Africa, but people don’t have the resources to pursue them. Typically, these situations drag out and get increasingly litigious until the contractor or sub-contractor starts to struggle because they don’t have the cashflow to continue. Eventually they get squeezed, which results in the end of a project, the relationship and possibly someone’s livelihood. Quantura will help to level the playing field and bring a sense of justice to the industry, which ultimately helps us all to contribute towards a safer and more productive construction industry around the world.”Barry Fullarton, a representative of HPR