19 Contractor Insolvency Flashcards
What are the different types of insolvency?
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What is the difference between insolvency and liquidation?
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What are the alternative courses of action when a company becomes insolvent?
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What is administration?
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What are the differences between liquidation, administration and receivership?
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What is a Company Voluntary Arrangement?
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What is a Creditors? Voluntary Liquidation?
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When is the Official Receiver brought in?
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What is a winding-up order?
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What is the significance of the Insolvency Act?
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What is an administrative receiver within the meaning of Section 29 of the Insolvency Act?
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What is the main role of an administrative receiver and how might he go about it?
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In relation to insolvency, what is the significance of the Law of Property Act?
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What is a Law of Property Act receiver and how does their role differ from that of an administrative receiver?
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Is insolvency a breach of contract?
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What are the insolvency provisions of a contract with which you are familiar?
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What action would you take if the contractor on your project became insolvent?
- Secure the site, including materials and plant
- Ensure the site is safe
- Terminate the employment of the contractor under the contract
- Verify the condition and quality of the works - document any defective or incomplete works
- Notify the client, project team and any third-party interest (e.g. lender)
- Decide whether to proceed with the works
- Agree a procurement strategy to finish the works if necessary
- Establish the remaining works and programme
- Assess the cost to complete the project
- Tender the works and appoint a new contractor
- Keep records of all costs associated with the completion of the works
In the event of a main contractor insolvency, what action should be taken in respect of unfixed materials on site?
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What action would you take if the main contractor on your project told you that he was about to go into administrative receivership?
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What are the main valuations that would need to be carried out a result of a contractor?s insolvency?
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If an interim certificate had been issued under the contract, but had not been paid and subsequently the contractor goes into administrative receivership, does the employer still have to honour the certificate?
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Should the employer make direct payments to a sub-contractor in the event of the main contractor becoming insolvent?
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When a main contractor becomes insolvent, who owns any retention held under the contract ?
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What are the issues surrounding retention of title in the event of an insolvency?
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What is the order of distribution of the proceeds of insolvency?
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In the event of the liquidation of the main contractor on a project, how might you go about appointing another contractor to complete the works?
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What information might an insolvency practitioner want from you as a surveyor on a contract?
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Why might an insolvency practitioner be interested in a valuation of the uncompleted works on a project?
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In the event of the insolvency of the employer under a contract, what help or advice might you be expected give to the insolvency practitioner if you were the contract administrator?
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What conflicts of interest could there be if the contract administrator on a project were to give help or advice to the insolvency practitioner?
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What are the main elements of a final account to determine the amount due to an insolvency practitioner of either a contractor or an employer?
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