Global engineering and construction claims consultancy Tungsten Capital has launched its Quantura subsidiary in South Africa, through which it will provide an alternative method of funding and developing commercially viable construction and engineering claims.
Allardyce & Partners Attorneys director and attorney Kevin Allardyce tells Engineering News that Quantura is a vehicle into which various fund managers have put about £150-million, which is used by Tungsten to finance construction and engineering disputes globally.
He explains that Quantura’s offering of funded ligation will now be provided in South Africa and sub-Saharan Africa exclusively through the joint venture between local firms HPR Project Consultants and Allardyce and Partners Attorneys.
The product offering was launched in South Africa earlier this year.
Allardyce says the response from companies in South Africa has been very positive, as the engineering and construction sectors are under significant pressure, paving the way for increased litigation over disputes in an environment where cash flow is severely constrained.
This type of offering is therefore designed to spread the risk subject to qualifying criteria, he acclaims.
He explains that it offers claimants a “no win, no fee” alternative to the traditional approach, where claims consultants and attorneys are paid their fees irrespective of their performance or the outcome of the claim.
This type of funding offers a commercially attractive alternative to traditional methods of funding the preparation of claims and formal dispute resolution.
Allardyce enthuses that the funding method enables companies in the sector to litigate without the risk of having to pay their own legal fees upfront which is usually prohibitive to litigation. He notes that such fees can be exorbitant in the case of engineering and construction sector disputes.
Moreover, Quantura is able to source any legal expertise for its cases and there is no “scrimping” on the legal budget. It can also draw on its global resources of legal experts.
Quantura looks at the size of the claim, reaches an agreement with the client that, in the event of success, it would be paid a percentage of the value of the claim, ranging from 10% to 15%, with the legal costs incurred also to be deducted from this.
He notes that this type of approach is especially useful in cases where construction companies are suing for loss of profits.
Quantura provides funding for claims of all sizes in the construction and engineering sectors.
Allardyce notes that Quantura is mainly used for individual claims, however, sophisticated portfolio models are also available.
For more information, Allardyce can be contacted on kevin@allardyce.co.za or 082 870 2634.