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What happens when a main contractor goes out of business during a contract?
Under the scot/q/ standard form of building contract. Say a main contractor goes out of business during a contract and a sub-contractor is owed money for materials purchased and some work done he has recieved some but not the full value as a consultant quantity surveyor issued the payment cert what advise could the quantity surveyor offer the sub contractor or how will he be payed?
Public Comments
- It depends entirely on the main contract between the contractor and the developer and also on the contract between the main and sub contractors. Get a lawyer - it will be a minefield. a
- That depends on the terms of the subcontractor's contract with the GC, as well as the terms of the bond posted by the GC for the project (assuming one was posted). Ideally, the bond posted by the GC should cover all the outstanding bills and allow for a project to get completed. Whether that is the case or not in your situation, we don't know. You will also have the option to file a contractors lien against the property, thus forcing the property owner to pay your invoices to clear title. However, this is a strictly regulated procedure, so you'd best retain a lawyer to handle it for you. If you mess it up, you can find yourself on the wrong end of some pretty severe damage claims. No matter what, this is worth finding a lawyer. At the very least you should make an appointment for a consultation and run it by him/her. Give them an idea of what you're going through and see if you think they can help. These situations are never easy to get through.
- Every sub-contractor is in the S>H>I>T>
