Cian BrennanFounder, Quantum Contract Solutions · Founder

Exactly what to do if your client goes insolvent on a construction project

Name: Exactly what to do if your client goes insolvent on a construction project
Uploaded: 2022-09-28T07:23:45+00:00
Duration: 37 s
Channel: Cian Brennan
Description: When your construction client goes insolvent, file your claim immediately with full documentation. Administrators prioritize whoever submits the most…

28 Sept 2022 · 1 min

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When your construction client goes insolvent, file your claim immediately with full documentation. Administrators prioritize whoever submits the most paperwork first, so the contractors who act fastest get paid from the limited funds available.

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So in construction, if your client goes insolvent or goes under, what you need to do straight away is essentially kill them with paperwork. So what's going to happen on their side is they're going to have a bunch of accountants come in, assess their books. They're going to say, hey, we're not going to pay anyone for a while, and then they're going to pay the squeaky wheel. They're going to pay the companies that have the most paperwork in, that are giving them the most stuff, because they're the squeaky wheel, and they're not going to pay the other guys. They're going going to make a decision. So make sure as soon as your client goes insolvent or something happens, that you're getting your claims in, that you're getting your paperwork in so that when they make the decision on who they need to pay, you're the loudest, and then they'll pay you first.