Regulation is not having the desired effect in reducing insolvency in the construction industry
This is not a ‘shock and awe’ article. I did not design it to scare readers into believing that the industry is about to see a lot of damaging contractor collapses.
Careful contract negotiation can limit the potential damage from insolvency in a construction firm’s supply chain.
Following are this week’s summaries of the Court of Appeal for Ontario for the week of November 14, 2022.
“Controlling the controllables” should be the main focus of contractors.
When I am struggling to focus on tasks, my “go-to aid’’ is to sit and write down things I can control. Invariably, as a result of this process, I end up identifying things that I cannot control. It is always occupying my thinking.
I then proceed to unload these very unhelpful intruders from my thinking and wham, away I go. This time focused on important things I have control of.
BITE SIZE KNOW HOW FROM THE ENGLISH COURTS
Injunctions
This week’s TGIF considers In the matter of Nicolas Criniti Pty Ltd (In Liquidation) [2022] NSWSC 1149 which examined the intersection between the winding up provisions in the Corporations Act 2001 (Cth) and the Building and Construction Industry Security of Payment Act 1999 (NSW).
Key takeaways
Good afternoon.
Following are this week’s summaries of the Court of Appeal for Ontario for the week of August 22, 2022.
In Mundo Media Ltd. (Re), the Court refused leave to appeal in a bankruptcy case where a debtor of the bankrupt sought to stay the bankruptcy proceeding in favour of international arbitration. The single proceeding model permits a bankruptcy court to override arbitration agreements.
It is common for construction project owners to finance projects through multiple mortgages, especially in times of rising construction costs. However, when an insolvency situation arises, holdback priority claims from contractors and subcontractors are particularly complex when there are multiple building mortgages involved. The Ontario Superior Court (Commercial List) provided new clarity in this regard in its April 29, 2022 decision in BCIMC Construction Fund Corp. et al.
WHITE PAPER An Update on Insolvency in the Australian Construction Industry The construction sector in Australia has long been affected by insolvency and broader liquidity issues. In the last year, construction companies accounted for 26% of businesses that entered into insolvency, and insolvencies in the construction sector more than doubled. This year, contractors have been further squeezed by inflation, supply chain issues and labour market shortages. As the federal government has wound back its COVID-19 economic stimulus packages, further collapses seem inevitable.
BITE SIZE KNOW HOW FROM THE ENGLISH COURTS
Maritime