Heating and Ventilating

Following news yesterday of the collapse of construction firm Connaught, a leading law firm Thomas Eggar's construction team offers advice to small contractors employed by Connaught in the wake of its administration.
'The collapse of Connaught is likely to have wide-spread ramifications for the construction industry, and contractors employed by the company to do the groundwork on outstanding projects may find themselves without fee and fighting to safeguard their own future,' said Frank Bouette, associate, Thomas Eggar LLP, comments:

'What these contractors need to do now is keep their ear to the ground for word on who will be picking up these projects where Connaught has left off in order to put themselves forward to finish the work.

'Simultaneously, they must conduct a review of the termination and protection clauses within their contracts to decide whether to terminate them and do what they can to recover any stock and goods supplied.

'They might also want to consider taking advice upon the options available to them to protect their own trading positions,' he added.

'If they have credit insurance, contractors should also speak to the providers of that insurance about whether or not it will pay out,' insisted Mark Clinton, a partner in Thomas Eggar LLP.

'Of course, the availability of such insurance has been very restricted in recent times. Connaught's clients will also be looking at their termination provisions and security.

'Contractors may want to look at any performance bonds put in place when they entered into the contract with Connaught to determine whether they can call upon those bonds to recover any losses they suffer.'