UUÂãÁÄÖ±²¥

This Checklist sets out a number of practical steps that a sub-contractor should consider taking in the event that the main contractor on a construction project becomes insolvent during the course of the works. It assumes that the sub-contractor has been engaged on written terms by a main contractor for a specific sub-contract package on a construction project and that the main contractor has been paying the sub-contractor directly (ie there is no project bank account, escrow account or other arrangement as to payment).

For guidance on how to spot potential problems with solvency and how to protect the sub-contractor’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—sub-contractors.

In the event that the main contractor engaged on a construction project has become insolvent, the sub-contractor needs to act quickly and consider all the practical and legal steps it can take to protect its position. Steps that the sub-contractor should consider taking are set out below. However, it should be noted that the sub-contractor’s