Problem: Owed money in unpaid applications and work in progress from liquidated main contractor
I work as a quantity surveyor for an electrical sub-contractor and on one of our projects the main contractor has gone into liquidation. The particular project was a major contract for us and we have calculated that we are owed around £65,000.00 in unpaid applications and work in progress.
The Employer has since engaged a new main contractor to complete the works, although we have not been invited to return and complete the electrical works (we still have operations to be done to complete works to make building watertight).
Where do we stand with regards to our outstanding monies owed?
Response: Your claim will have to be directed at the Liquidators of the company
If your contract was with the main contractor that has since gone into liquidation, your claim for monies owed will have to be directed at the Liquidators of the company. Unfortunately, you will be very fortunate to receive any payout from the liquidators, and then only a few pence in every pound. Because you have no contract with the new main contractor, you have no claim for your monies against them, and the same applies with the Employer.
The Liquidators remit will be to liquidate as much money as possible which will include securing monies from the debtors and the selling of company assets. The monies secured will then be used to pay off creditors in order of priority and also the charges made by the Liquidators. Unsecured creditors are the last in line to receive any payout, which is why the return is so low or non-existent.
That said, I recommend that you find out for certain who you have actually contracted with. Having analysed hundreds of contracts in the past, there have been a few instances where the client, believing it had contracted with a particular party, had in fact contracted with a different company, firm or individual. It is a long shot, but you never know.
Have you managed to secure all of your plant, tools and machinery from the site? If not, you should make immediate arrangements with the Employer to enter site and collect your possessions. Perhaps you could also look at negotiating the remainder of the work with the new main contractor, and attempt to recoup some of your losses? Good luck.
© Michael Gerard 2015
The advice provided is intended to be of a general guide only and should not be viewed as providing a definitive legal analysis.