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| Although major insolvencies are infrequent, we need to be prepared for the risk to continuity of critical projects posed by the insolvency of key suppliers. |
| Driving better, faster, greener delivery |
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| • Effective planning, monitoring and risk mitigation will help us safeguard the delivery of public works and minimise the time, cost and quality impacts of any supplier failure. | |
Contracting authorities and suppliers should develop open and transparent relationships to enable both sides to act quickly in the event of financial distress. If a supplier becomes insolvent, construction projects will be affected, likely causing delay and additional cost. It can potentially put the delivery of critical public works at risk.
Guidance on supplier financial distress is available in the 'Guide to Corporate Financial Distress'. The guidance sets out common signs of potential distress, how financial distress can lead to insolvency, the different forms of insolvency, the steps that you should take and the additional support available.