It is an unfortunate sign of the times that “going bust” is no longer greeted with unexpected shock but rather with resigned shrug of the shoulders. This is not news to those in the construction industry.

 What it does mean is that the survivors are likely to be those who take measures to avoid being dragged down with those they contract with and take immediate and practical steps to protect their position in the event of a contractor slipping under.

Whilst some will be familiar with the provisions contained in most standard JCT/NEC agreements dealing with administration, a recent survey of DTM’s property development clients revealed that most (60%) did not have a plan of action in place in the event of a contractor entering administration and the practical steps which may be required (e.g. securing the site, plant, & equipment; notifying insurers; serving withholding notices; or, claiming on a performance bond).

Not doing some or all of these steps has the potential to make a bad situation much worse and result in significant financial losses which could have been avoided.

DTM’s construction team has specialist experience within the sector and provide advice and support to it’s clients in a manner which is commercially driven.