Insolvency Practitioners

Insolvency Practitioners are often appointed to deal with construction companies needing rescue or which have become insolvent. One of the key issues to be established will be the company’s liabilities to other organisations and vice versa. In reality this is likely to mean how much should the company be able to financially recover from their construction clients and what is their financial liability to other firms.

Inevitably, these liabilities will be dictated by the contractual arrangements in place and the performance of the company. Edge Consult can provide you with the necessary support and assistance in addressing these issues. We can review contract documentation to establish the contractual liabilities, the status of works completed, a reasonable valuation position, whilst taking into account programme delays and the liability for those delays. Should a dispute then arise on any of these matters, Edge Consult can also act as Party Representative in an adjudication.

As an Insolvency Practitioner for a construction company are you:

  • Looking to secure the most cost effective return for creditors?
  • Seeking to recover disputed sums due to the company?
  • Requiring quantum and programme management support?
  • Intending to maintain an operational business with more robust internal management systems?
  • Seeking expertise to complete on-going obligations of a failing business to secure money otherwise due?
  • Looking for construction expertise to manage technical and contractual matters for a failed or failing business?

Edge Consult will:

  • Secure information and records
  • Analyse contract positions and report on potential recoveries
  • Assess outstanding liabilities, e.g. on warranties and bonds
  • Prepare valuations, claims and final accounts/statements
  • Secure on-going payment entitlement
  • Manage and defend counterclaims and assess risks
  • Secure retentions and protect performance bonds
  • Assist companies to continue trading with advice on systems and procedures; assisting in the implementation of change
  • Act as Party Representative in any construction adjudication

Edge Consult was requested by their client, a Contractor, to carry out a thorough review of its management systems and analyse the financial position of their projects to establish its business cash position.

Edge Consult found that the financial position was significantly worse than the client anticipated. Edge Consult provided a practical and clear Report to the client along with specific recommendations to develop in its day to day operation of the business.

Edge Consult worked alongside the client’s Specialist Accountants/Business Recovery Specialists, in pursuit of outstanding monies and maximising their contractual entitlement.

However, before the benefits of our review could be implemented, the Contractor’s business entered administration. Following this, Edge Consult were employed by the Insolvency Practitioner to pursue and maximise the company’s entitlements. In addition, we successfully defended it from significant counterclaims.