The insolvency scandal
Klein, R.
The insolvency scandal - 2003 - Construction News (6840) 30 October 2003, 57(1) .
Looks at how subcontractors can be affected when firms further along the process become insolvent. Reviews how the Enterprise Act 2002 has sought to encourage administration as a solution, but points out that delays mean that smaller firms still cannot protect themselves against ruin. Suggests the idea of establishing trust funds, as outlined in the Latham report "Constructing the team" (ISBN 011752994X), should be re-examined. Proposes the pay-if-paid exemption in the Housing Grants, Construction and Regeneration Act 1996 s113 should be removed, as it allows further payment delays. Concludes the foreign model of jurisdictions which have legislation specific to construction may provide better protection from insolvencies.
HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT 1996 S113
ENTERPRISE ACT 2002
LATHAM REFORMS
PAY-IF-PAID EXEMPTION
INSOLVENCIES
SUBCONTRACTORS
The insolvency scandal - 2003 - Construction News (6840) 30 October 2003, 57(1) .
Looks at how subcontractors can be affected when firms further along the process become insolvent. Reviews how the Enterprise Act 2002 has sought to encourage administration as a solution, but points out that delays mean that smaller firms still cannot protect themselves against ruin. Suggests the idea of establishing trust funds, as outlined in the Latham report "Constructing the team" (ISBN 011752994X), should be re-examined. Proposes the pay-if-paid exemption in the Housing Grants, Construction and Regeneration Act 1996 s113 should be removed, as it allows further payment delays. Concludes the foreign model of jurisdictions which have legislation specific to construction may provide better protection from insolvencies.
HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT 1996 S113
ENTERPRISE ACT 2002
LATHAM REFORMS
PAY-IF-PAID EXEMPTION
INSOLVENCIES
SUBCONTRACTORS