CIGA 2020 meaning

Checklist This Checklist summarises practical measures a sub-contractor should consider if the main contractor on a construction project becomes insolvent during the course of the works. It assumes the sub-contractor is engaged on written terms by a main contractor for a defined sub-contract package, and that the main contractor has been making payments directly (i.e. there is no project bank account, escrow account, or alternative payment mechanism). For advice on identifying early signs of solvency concerns and protecting the sub-contractor’s position from the outset, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—sub-contractors. Where the main contractor on a construction scheme has gone insolvent, the sub-contractor should respond promptly and evaluate every practical and legal step available to safeguard its position. The actions a sub-contractor should contemplate are outlined below...

The circumstances in which an incumbent office-holder needs to resign from their appointment are: ill-health retiring as, or stopping practice as, a licensed insolvency practitioner (IP) a conflict of interest, or a shift in personal circumstances, that prevents or renders impracticable the continued performance of duties Examples include curtailment or withdrawal of the IP’s licence to act, the IP changing firm with appointments not transferring, or alternative arrangements being put in place for those appointments. This Checklist should be read alongside the Checklist on the block transfer of office-holder appointments: Procedure for block transfers of office-holder appointments—checklist, as a block transfer order can often be the speediest and most economical means of addressing the situation. Further guidance appears in the Practice Note: Block transfer orders—the law and practice. An office-holder can also be displaced by creditors, which may need to be factored in. For more detail, see: Removal of an office-holder—checklist. While the various insolvency regimes share broadly...

This checklist of resources highlights key considerations when preparing, reviewing and negotiating commercial contracts to take account of the limits on ipso facto provisions brought in by the Corporate Insolvency and Governance Act 2020 (CIGA 2020), and to ensure agreements remain compliant and workable on insolvency. Corporate Insolvency and Governance Act 2020-the impact for commercial lawyers CIGA 2020 amended the Insolvency Act 1986 (IA 1986), introducing measures to secure the continuity of essential supplies and to curtail contractual termination rights triggered by insolvency (the so-called ‘ipso facto’ clauses) in contracts for goods and services. The issues most pertinent to general commercial practitioners when drafting and negotiating contracts are: contractual rights to terminate for an insolvency event, or to take any other step because of a customer’s insolvency, in contracts for the supply of goods and services, are no longer effective the creation of a company moratorium, available to all companies, enabling companies to develop restructuring proposals without creditor pressure the introduction of a...

On 17 April 2024, JCT released the 2024 versions of its Design and Build (DB) Contract and the Design and Build Sub-Contract (DBSub), together with the accompanying guides. The JCT Design and Build forms are aimed at projects where the contractor is responsible for completing the design as well as delivering the works. The JCT DB Sub-Contracts are intended for use where the main agreement is the JCT DB, and may apply either when the sub-contract package is fully designed or when the sub-contractor must design part or all of the works. In this piece, we explore some of the principal updates in the 2024 JCT DB documents compared with the 2016 suite, concentrating on JCT DB 2024 (ie the main contract). Reference copies of JCT DB 2024 and JCT DBSub 2024, and their companion guides, can be found on Lexis+ Construction under the sub-topic ‘JCT contracts 2024’ within the main topic ‘Standard form construction contracts’. They are also available via Practice Note: JCT contracts 2024—reference copies. What are...

On 15 May 2024, the Joint Contracts Tribunal (JCT) released its 2024 versions of the Minor Works Building Contract (MW), the Minor Works Building Contract with contractor’s design (MWD), the Minor Works Sub-Contract with sub-contractor’s design (MWSub/D), the Short Form of Sub-Contract (ShortSub) and the Sub-subcontract (SubSub) 2024. This follows the 17 April 2024 publication of the Design and Build Contract and the Design and Build Sub-Contract Agreement and Conditions, together with the related guides (see News Analysis: The JCT Design and Build Contract 2024—what’s changed?). These forms sit alongside the April releases and guides. The JCT MW and MWD suites are geared for schemes of relatively modest value where the Contractor must perform the construction works, and, for MWD, also undertake a defined element of the design responsibilities. MW covers the works, whilst MWD includes a contractor-designed portion carried out by the Contractor. The JCT MWSub/D is designed for projects where the main contract adopts the JCT MWD form, and sets out obligations concerning designs delivered by the sub-contractor...

The rollout of the JCT 2024 suite has progressed with the issue of 2024 editions of the JCT Major Project, Constructing Excellence, and Prime Cost Building contracts (together with their related guides and sub-contracts) on 16 October 2024. For analysis of the revisions to the Major Project form, see News Analysis: The JCT Major Project Construction Contract 2024—what’s changed? In this piece, we set out the principal updates to the Prime Cost Building Contract 2024 (PCC 2024), measured against its 2016 predecessor and other documents in the JCT 2024 suite. Reference copies of PCC 2024 and the Prime Cost Building Contract Guide 2024 (PCC/G 2024) will shortly be accessible on Lexis+® Construction, within our sub-topic ‘JCT contracts 2024’ (housed under the main topic, ‘Standard form construction contracts’), and also via Practice Note: JCT contracts 2024—reference copies. For information on the remaining contracts issued as part of the JCT 2024 suite, including the key amendments since 2016, see Practice Note: JCT contracts 2024—what's changed? For commentary on how...

Practice Note This Practice Note consolidates our content on the amendments as introduced in the 2024 editions of the Joint Contracts Tribunal (JCT) standard form construction contracts...

A company voluntary arrangement (CVA) proposal, or any alteration to it, cannot be approved by the company or its creditors if it would interfere with a secured creditor’s ability to enforce its security, unless that secured creditor agrees. In practice, where significant secured creditors or major landlords are involved, it would be atypical to advance a CVA without prior dialogue with them before circulating the proposals (see Practice Note: CVAs—landlord issues and remedies). In addition, where a CVA is put forward within 12 weeks of a moratorium ending under the Corporate Insolvency and Governance Act 2020 (CIGA 2020), those owed unpaid moratorium debts and priority pre-moratorium debts effectively hold a veto: neither the company nor the creditors may sanction the CVA unless those liabilities are discharged in full, unless the relevant creditors consent. CIGA 2020, Sch 3, para 4 protects creditors with unpaid moratorium debts and priority pre-moratorium debts (as defined in new section 174A of the Insolvency Act 1986 (IA 1986)) in any subsequent CVA (see Practice Note: Moratorium)....

The Corporate Insolvency and Governance Act 2020 (CIGA 2020), effective from 26 June 2020, removes the small-company moratorium under Schedule A1 to the Insolvency Act 1986 (IA 1986), replacing it with a new standalone moratorium. For more detail, see Practice Note: Corporate Insolvency and Governance Act 2020—moratorium and News Analysis: Corporate Insolvency and Governance Act 2020—company moratorium (Scotland). The Insolvency (Scotland) (Company Voluntary Arrangement and Administration) Rules 2018 (ISCVAAR 2018), SI 2018/1082, were laid before the UK Parliament on 15 October 2018 and came into force on 6 April 2019. The Insolvency (Scotland) (Receivership and Winding Up) Rules 2018 (ISRWR 2018), SSI 2018/347, were laid before the Scottish Parliament on 14 November 2018 and likewise commenced on 6 April 2019. The existence of two rule sets reflects the devolved settlement and the respective responsibilities of the Scottish and UK parliaments for corporate insolvency processes. As a result, certain provisions are mirrored and both sets are cited where rules overlap. The ISCVAAR 2018, SI 2018/1082 and the ISRWR 2018, SSI...