An event, circumstance or cause which, under the contract, is at the risk or responsibility of the contractor—it will therefore not be entitled to additional time or money if the event/circumstance transpires.

This Checklist sets out a number of practical steps that a contractor should consider taking where the employer 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 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 employer's insolvency, but this Checklist is intended to provide a starting point for the contractor to consider. For guidance on how to spot potential problems with solvency and how to protect the contractor’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—contractors. In the event that the employer has become insolvent, the contractor needs to be proactive to protect its own financial interests. Steps that

This Checklist sets out a number of practical steps that a main contractor should consider taking where a sub-contractor it has engaged becomes insolvent during a construction project. This Checklist assumes that the contractor has entered into a written sub-contract with the sub-contractor for construction works which are not yet complete. 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 sub-contractor’s insolvency, but this Checklist is intended to provide a starting point for the contractor if such circumstances occur. For guidance on how to spot potential problems with solvency and how to protect the contractor’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—contractors. In the event that a sub-contractor has become insolvent, the contractor needs to be proactive to protect its own financial interests and to enable it to complete

1 Contractor warranties and undertakings 1.1 The Contractor warrants and undertakes that: 1.1.1 the Contractor has observed and performed and shall continue to observe and perform all the terms and obligations of the Contractor under the Building Contract; 1.1.2 in respect of the design of the Works under the Building Contract, the Contractor has exercised and shall continue to exercise all the reasonable skill, care and diligence to be expected of a properly qualified and competent architect or other appropriate professional designer experienced in projects of similar scope, type, size, nature and complexity as the Works. 1.2 The Contractor's duties under this Memorandum shall be no greater and of no longer duration than the duties which it owes to the Employer under the Building Contract and the Contractor shall be entitled in any action or proceedings to rely on any limitation in the Building Contract and to raise the equivalent rights in defence of liability as it would have against the Employer had the Beneficiary been named as joint employer under the Building Contract, save with respect to any set-off or counterclaim.

1 Contractor warranties and undertakings 1.1 The Contractor warrants that: 1.1.1 the Contractor has observed and performed and shall continue to observe and perform all the terms and obligations of the Contractor under the Building Contract; 1.1.2 in respect of the design of the Works under the Building Contract, the Contractor has exercised and shall continue to exercise the reasonable skill and care to be expected of a properly qualified and competent architect or other appropriate professional designer experienced in projects of similar scope, type, size, nature and complexity as the Works. 1.2 The Contractor's duties under this Memorandum shall be no greater and of no longer duration than the duties which it owes to the Employer under the Building Contract and the Contractor shall be entitled in any action or proceedings to rely on any limitation in the Building Contract and to raise the equivalent rights in defence of liability as it would have against the Employer had the Beneficiary been named as joint employer under the Building Contract. 2 Deleterious materials The Contractor further warrants that it has not used or specified

Construction analysis: The Technology and Construction Court (TCC) found that the employer and contractor had failed to enter into a formal construction contract in respect of a development project, meaning that their relationship remained governed by a letter of intent (LOI). The result was that the contractor’s entitlement to payment was capped at the value of the LOI, which was lower than its valuation of the completed works.

Construction analysis: The Sheriff Appeal Court allowed an appeal by a sub-contractor, finding that the sub-contract payment provisions did not allow the contractor to deduct illiquid sums from interim payments.

The proposals by Project Co/the Construction Contractor in which they explain how they will provide the facilities and/or services. This document provides a response to the Authority's Requirements and should satisfy any output requirements put forward by the Authority.

A specified part (or parts) of the works carried out by the contractor in relation to which the contractor has also either carried out the design or has responsibility for the design. 'Contractor's Designed Portion' is the term used in JCT contracts.

Environment analysis: Despite no claim being brought under Rylands v Fletcher principles, the recent case of Northumbrian Water v McAlpine highlights how pre-construction checks can protect a contractor from claims in nuisance and negligence.

What is Contractors’ All Risks insurance? Construction insurance comes in two main categories, namely ‘property’ and ‘liability’ insurance. Property insurance refers to cover for damage caused to physical property, and can be extended to cover consequential losses (eg business disruption, loss of profits etc). Liability insurance refers to cover for claims against the insured by third parties, contractors, employees, etc, for personal injury, property damage or loss of profits. Insurance for damage caused to construction works is known as Construction All Risks, of which Contractors’ All Risks (below referred to as ‘CAR’) is a form. Contractors’ All Risks is a Construction All Risks insurance drafted in such a way as to identify the person who is to have the benefit of the insurance, rather than the damage that is covered. The insurance market has not arrived at a set of agreed standard definitions, and underwriters continue to develop their own specific wordings to cover the needs of the market. Contractors’ All Risks insurance usually comes in three types of cover, or combinations thereof:

The purpose of contractor’s all risks (CAR) insurance is to provide indemnity cover for physical loss or damage to buildings and civil engineering works and plant which arises from accidental causes during the course of construction works.