UK Construction: Main Contractor Checklist for Sub-contractor Insolvency (JCT/NEC): verification, securing works, termination notices, bonds/guarantees, replacement appointment, employer engagement, records.
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This Checklist outlines a series of practical measures that a main contractor should weigh up if a sub-contractor it has appointed becomes insolvent during a construction project. It proceeds on the basis that the parties have a written sub-contract covering construction works that remain unfinished, and that the arrangement is not a PFI project. The precise response in any given case will inevitably turn on the contractual provisions between the parties and the stage the works have reached at the point of the sub-contractor’s insolvency, but this Checklist is intended to act as an initial framework for the contractor should such circumstances arise. For guidance on identifying warning signs of solvency issues and safeguarding 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. Where a sub-contractor has become insolvent, the contractor must act promptly to protect its financial position and to enable completion of the project with as little disruption and delay as possible, thereby avoiding exposure to liabilities to the employer.
Steps that the contractor should consider taking
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Web page updated on 27/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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