Main Contractor Insolvency – Contract Quick Guide

In light of the recent Carillion demise, this guide provides a starting point on common forms of contract for both employers and subcontractors looking at how insolvency affects the supply chain from both directions. The table below is a quick reference for the processes in the main contract and subcontracts for the scenario where the main building contractor has gone bust.

Of course every contract is different, whether it is bespoke amendments to a JCT format, or a PFI pass down agreement, or something else, so you must always check the contract to see what it actually says.

Also, people often forget to check the notice provisions in a contract – so if you have to serve a notice, check if there is a particular procedure that you must follow to achieve valid service.