Should Contractors Get Security from Principals?

In the construction industry, typically provision of security flows upstream – that is, the subcontractor gives security to the head contractor who gives security to the principal. The principal, after all, has a legitimate interest in and concern about potential defects during the liability period, and wants to ensure it has some comfort about that. … Read more

When the Liquidator Knocks – Answering Unfair Preference Claims

The stark reality for the construction industry is that many construction businesses are entering different types of external administration. Whether it’s administrators, receivers or liquidators – construction companies are unfortunately suffering the effects of complex economic conditions over the last few years. But the woes don’t necessarily stop when a company goes into liquidation. Beyond … Read more

Terminating a Construction Contract – Do or Do Not, There is No Try

In a world of basically instant communication methods, one of the poorer decisions a construction company can make is to try and fire off an email terminating a contract when it doesn’t have lawful grounds to do so. Why? Because it’s digging yourself into a legal hole that will ultimately cause you loss, legal fees, … Read more

What to Do if your Contractor Client Goes Into Liquidation

Unfortunately, the construction industry and the insolvency profession are close cousins. Despite attempts by regulators to monitor the financial wherewithal of licenced builders, the fact remains that there is a very real risk that a contractor you deal with could go into liquidation. And if that happens, the consequences for you can be significant. Most … Read more