02
Nov
Construction payment disputes: What are your options when payment is withheld?
Unpaid progress claims, disputed variations and defective work can lead to costly construction payment disputes. We examine the...
An unfortunate (albeit inherent) reality of the construction industry, is that if, for one reason or another, targets or deliverables are missed, projects can be exposed to significant financial pressures. Effectively, one bad project, an unpaid progress claim, or a substantial defects claim, can potentially spell the end of a business.
Sometimes it is a matter of keeping creditors (and government regulators) at bay until the next payment arrives; however, there are other times when the commercial decision to liquidate the company may be the more appropriate option.
Insolvency issues for building companies are complicated by the fact that directors and influential persons of liquidated building companies may, in some states, be restricted from holding a building licence, or from being a director of a licensed company, for a period after the liquidation of the company.
If our clients are facing insolvency issues, Dark Legal can help navigate these precarious conditions, whether they are temporary cash flow difficulties or more terminal problems. We can also provide advice on the structuring of your affairs so that your assets are protected and you are able to continue to earn a living if liquidation or insolvency is unavoidable.
