Sub-contractor checklist on main contractor insolvency: practical steps, payment protections, step-in rights, and IA 1986 s233B (CIGA 2020) restrictions on suspension and termination

Published by a LexisNexis Construction expert

Checklists

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...

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Web page updated on 20/05/2026

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