This paper will look at the effect litigation has had on the structure of the construction industry. During the last quarter of the 20th century, the volume of construction litigation expanded greatly. The legal profession claims that the purpose of this rise in litigation was to change the way that the industry works; this paper seeks to determine what the causal relationship actually is.
While there is specialization occurring in the construction industry due to increased complexity and new technology, has the increased legal responsibility of the firm caused a horizontal rather than vertical mode of specialization?
Comparisons to specialization of other professions and the effects of litigation on other industries will be made in order to answer the following questions: has this increase in litigation been the cause for increasing levels of stratification in the industry? Is this movement toward specialization an irreversible trend in the industry? Are there unforeseen effects caused by this litigation that may stunt progress in the design-build arena?