Insolvency in construction projects
The Construction Lien Act is very tricky and can be even more complicated when one construction project company goes into Insolvency. Known as an internship that describes the debtor’s inability to pay debts on a construction project, Insolvency may be more common than you might think.
It is possible to perceive a pre-insolvency stage in some situations, even before the insolvency status decree. In such cases, you must take some steps, such as:
- Establish a complete list of the team managing the contract of construction project
- Identify all subcontracts involved with the company that possibly will enter into insolvency proceedings.
- Clarify your rights and obligations
- Ensure that you have all contract documents for the project
- Develop a contingency plan in case of the Insolvency of the contractor.
If your insolvency intuition comes to fruition, or even if you are observing some pre-insolvency situations, talk to us. We will seek your rights in court. Schedule a free consultation today with our experienced construction lawyer – 416-221-2221