Insolvent Contractor

Contractor insolvency can have significant implications for project delivery, client interests, and the architect’s professional responsibilities. Refer to the Acumen note “Contractor Financial Instability, Early Warning and Response” for guidance on early-stage issues and warning signs before a contractor enters liquidation.

When a contractor enters liquidation, the situation extends into the broader realm of legal, financial, and regulatory matters. At this stage, the roles of the architect and the owner are clearly defined and separated. The architect’s role focuses on advisory and documentation tasks, ensuring the client is informed, risks are managed, and professional boundaries are maintained.

ARCHITECT'S ADMINISTERING THE CONTRACT ROLE (ADVISORY AND DOCUMENTATION):