Construction & engineering briefing: November 2012

As one would expect, during the recession, the number of construction insolvencies has increased steadily. Whilst a lot has been written about contractor insolvency, commentators have said relatively little on developer insolvency. What are the issues concerning developer insolvency - particularly in circumstances where construction work remains incomplete?

In the wake of a developer’s insolvency, the biggest issue a main contractor faces is whether to determine his employment under the building contract.

Our clients are often surprised to learn that, under the common (general) law, insolvency (even liquidation) is not a fundamental breach of contract for which a party may terminate. Insolvency does not even constitute a breach of contract which entitles the other party to claim damages. That said, most industry form agreements (such as the JCT building contracts) have been drafted to give the contractor an express right to determine his employment upon the occurrence of an insolvency event of a type set out in the building contract.

If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer


3 Noble Street

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 542 (International 50)
No. of partners: 142.6