What are the early warning signs that a contractor may be in financial difficulty?
As the project progresses, it is important to continually monitor the contractor’s performance. Any one or more of the items below can be early warning signs that the contractor is in financial difficulty, and that further actions may be necessary:
- Decrease in labour or contractor’s personnel on site, and/or rapid turnover of contractor’s personnel
- Slowdown in progress on site
- Plant, equipment or materials suddenly disappearing from site for no apparent reason – unpaid subcontractors may unilaterally decide to remove items from site regardless of their contractual rights to do so
- An increasing number of defects and reduction in the quality of the contractor’s work
- The contractor seeking changes in the payment arrangements, and in particular early payments
- The contractor making spurious claims or contra charges
- The contractor seeking assignment of its benefit of the building contract
- Late filing of accounts by the contractor at Companies House
- Unsatisfied court judgements against the contractor
- Subcontractors and suppliers not being paid or being paid late
- Rumours in the press, in the industry, on site or elsewhere regarding the solvency of the contractor
- Unusual visits to site, for example from the contractor’s senior management or other personnel who had not previously been present or are not expected to be present
- Increasingly aggressive behaviour by the contractor
- The contractor’s parent company or another company within the contractor’s group displaying any of the above signs
Related FAQs
If you do not have a justifiable reason for insisting that your employees have the vaccine (see FAQ above) your employee could resign and bring a claim of constructive unfair dismissal if they have more than 2 years’ continuous employment. This would be on the basis that you have breached trust and confidence.
If the vaccine includes pig gelatine (as many do), and the employee refuses on religious or because they are vegan, you may face a claim for discrimination under the Equality Act 2010.
There should be some data collected as to the type and number of interactions MHFA are having, to ensure no one individual or individuals are overloaded. MHFAs should be encouraged to maintain regular self-care practice, to lean in to all support provisions available in their organisation, to engage in peer support, and to take a break from their role as a MHFA to prioritise their own wellbeing as needed. It is also important that those who volunteer to be MHFAs have the support of their managers. So they have the time to do both their core role and their MHFA duties without feeling pressurised to cram work into spare time to make up for time spent on MHFA duties.
If changed circumstances mean that a business wants to exit from a contractual arrangement, then before trying to terminate it, a careful review should be carried out to see whether a right to terminate actually exists. For example:
- Not every contract for the sale of goods contains the right for the buyer to terminate in circumstances where the supplier hasn’t done anything wrong. If a business has entered into a contract on the supplier’s standard terms, it is unlikely to contain any such provision
- A contract for the provision of services is unlikely, if drafted by the customer, to contain a provision that allows the supplier to walk away from the arrangement at short notice, or perhaps at all
If a party tries to terminate a contract when it doesn’t have the right to do so, the other party will likely claim breach of contract and could sue for damages. In the case of a long term or high-value contract, this could amount to a very significant liability.
Even if the right to terminate the contract does exist, there might be particular rules about the following:
- How much notice has to be given
- How such notice has to be served (for example, it might have to be in writing to a particular address)
- When the notice can be served (perhaps on an anniversary of the start of the contract)
- How much a party has to pay if it cancels (for example, for raw materials, for work done to date, or even the whole contract price)
All of these factors must be taken into account, and any contractual processes for termination are followed.
This guidance from the Chief Coroner applies to reports of death and coroner investigations in England and Wales. It is to assist coroners in continuing to exercise their judicial decisions independently, in accordance with the law, and during the extraordinarily pressured events being faced at present.
Business operators such as travel operators, hotels and restaurants remain vulnerable to claims of failure to protect against contracting the virus. There is a high chance of claims from employees, clients and members of the public. These are likely to be covered under public liability and employer’s liability insurance.