It has only been a few weeks since Carillion went into
liquidation and suddenly one of the biggest construction and
service companies in the country is gone. In this article, we give
some practical advice on how best to protect yourself if you are in
contract with a company, or about to enter into contract with a
company, that might have hidden financial difficulties.
Let's be honest for a moment corporate insolvencies and
bankruptcies happen and most of the time they come as a surprise.
Carillion was not really a surprise as it had been flagged up for
months before it happened. Equally, it is not so rife that
you can go through your entire business career barely being
affected by an insolvency. In the construction and real
estate industry we are all too often affected by insolvency.
One of the main drivers of insolvencies is the payment
mechanisms of the construction industry where the contractor,
primarily the sub-contractors on behalf of the contractors, pay
