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ARTICLE · 14 AUGUST 2016

E-Alert No. 3 of 2016: Building, Engineering, Construction and Infrastructure

Broadley Rees Hogan Lawyers
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You can do little to prevent a contractor from becoming insolvent, but you can take steps to limit your exposure.

AustraliaReal Estate and Construction
Brent Turnbull (Formerly With Broadley Rees Hogan Lawyers)
Brent Turnbull (Formerly With Broadley Rees Hogan Lawyers)
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What's insolvency got to do with it....


Times are tough in the Queensland construction industry.

In recent times we have seen the demise of names such as Glezeil, Carmichael Builders, SX Projects, TRAC Construction, Gary Deane Constructions and JM Kelly (Project Builders) Pty Ltd.

Insolvency affects all industries, but, given the hierarchical nature of construction contracts, when a construction company is unable to pay its bills, it can cause devastating results both up and down the contractual line:

  • Principals are left with a half-finished project, inevitably costing more to complete than would have been the case had the original contractor remained on the job;
  • Subcontractors are left unpaid – despite (often) having accrued significant out of pocket costs in relation to the work; and

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