This Checklist sets out a number of practical steps that an employer should consider taking where the main contractor it has engaged becomes insolvent during a construction project. This Checklist assumes that the employer has entered into a written contract with a main contractor for construction works which are not yet complete (and that the employer still wants to complete the works), and that the contractor has engaged sub-contractors. It assumes that it is not a PFI project. The actions to be taken in any specific situation will of course depend on the terms of the contract(s) between the parties and the status of the works at the time of the main contractor’s insolvency, but this Checklist is intended to provide a starting point for the employer to consider.

For guidance on how to spot potential problems with solvency and how to protect the employer’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—employers.

In the event that the main contractor has become insolvent,