Who owns what? (2014) 25 4 Cons.Law 29 [Archived]
Who owns what? (2014) 25 4 Cons.Law 29 [Archived]

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Who owns what? (2014) 25 4 Cons.Law 29 [Archived]
  • Key points
  • Materials for incorporation into the works
  • Equipment used to complete the works
  • Retention of title

This article appears as originally published in Construction Law on 1 May 2014 and is not maintained.

Contractor insolvencies are expected to continue as the economy recovers from recession. Michael Bennett of Weightmans reviews how the courts regard title to materials and equipment already delivered to site when a contractor goes bust.

Key points

  1. Even as the economy recovers, insolvencies in the construction sector are likely to continue

  2. A contractor facing losses due to an insolvency is likely to fight to retain title of plant and equipment on site

  3. Main contractors and employers should consider whether to provide that title in materials is transferred on delivery to site in order not to lose out in an insolvency scenario

  4. Main contractors and employers may also seek to retain equipment left behind, but is this allowed?

Last year saw its fair share of insolvency cases in the construction sector—it is a sad fact of recession that companies will continue to go under while the economy recovers. However, where does the insolvency of a sub-contractor leave those relying on its works? Clearly out of pocket, but are there ways of recovering some of this loss without going through the administration process? When a sub-contractor goes into administration, there is often a fight for the ownership of materials on site. Unpaid suppliers claim