The contractor has stopped. Works are part-complete and stalled. Costs appear at risk of spiralling. And you need to figure out what happens next.
In the current volatile market we find ourselves, this situation is unfortunately more common than most people in the industry like to admit. And while every project is different, recovering one successfully depends on working through the right steps in the right order – and making good decisions under pressure, often with incomplete information.
There are multiple factors to consider in this unfortunate event. The first step is which is typically to determine the current status of the project. This includes ensuring the site is safe and secured, materials are protected, and to undertake a full assessment of the part-complete works – what has been done, to what standard, and thus what remains.
Design and securities. Is the project design information accessible and up to date. Where does the project stand with warranties and other securities.
Then there is the financial position. This is usually where the real complications sit. Subcontractor accounts, material procurement, retention, funding sources – unpicking where the financial status, and what obligations remain, typically shapes every decision that follows.
The supply chain relationships matter too. When a main contractor fails, what happens to the supply chain and all of their expertise and previous project knowledge.
Once you a clearer picture has been developed on the state of play, there is then the decision-making process on how to remobilise and drive the project to completion. This in itself can be a time-consuming deliberation, and all while project running costs continue to accumulate.
At Construct1, we have experience working with clients who have found themselves in this unfortunate position, and helped them to navigate this process in real-time, ensuring their project does turnaround and reach completion.
If you have a stalled project, or a situation that is heading that way, we have done this before. Get in touch and we can talk through where you are and what the options look like.