Protect Yourself from Insolvent Contractors

With Henry Construction entering administration last week, millions of pounds will be owed to sub-contractors who will be lucky to get 10% of what is outstanding to them.

We have spoken to a couple of sub-contractors who have been affected by this and they both said the same thing, they knew this was on the cards but didn’t know what to do to minimise their exposure and were worried that they wouldn’t have the resources or the expertise to win the David vs Goliath battle if they did try something.

There is plenty that you can do to limit your exposure no matter whether the company you are working for are at risk of insolvency or not. The options open to you range from issuing notices of suspension if your payment is overdue to commencing adjudication proceedings if you feel your work hasn’t been fairly valued along with a variety of other options in between.

On their second point, don’t be afraid of taking on someone much bigger than you, the chances are that they don’t have the unlimited resources that you might think they have and remember that in the story, David came out victorious against Goliath and so could you.

If you find yourself constantly worrying about companies your are working for becoming insolvent, then please give Giles Associates a call to discuss how we can help protect your business