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building contracts

June 25, 2018 By Hallewell Law

Beware: Construction contracts and ipso facto insolvency reforms

Posted on 25 June 2018

Where a contractor, such as a builder or sub-contractor, suffers from an event of insolvency or is actually insolvent, most standard building contracts currently grant a principal, such as an owner or head-contractor, “ipso facto” rights, such as the rights to suspend building works, call upon and enforce any security given by the contractor, and terminate the building contract.

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