According to the credit insurer, Euler Helmes, there were more insolvencies in construction than in any other sector during the first six months of 2011.

Where an insolvency affects consultants and contractors mid project then clients will be concerned about the possible ramifications for their projects.  What are some of the key considerations for a client in this scenario.

Can the appointment/building contract be terminated immediately? Does the appointment/building contract permit the client to retain the right to use any documents, post termination, prepared by the consultant or contractor and is the license to use these documents irrevocable?

What accountability will the outgoing consultant or contractor have for the work they have carried out and should any incoming professional review the work done and agree the suitability?  An incoming consultant or contractor is likely to demand an uplift in their own fee if they are to be responsible for any work carried out by a previous professional.

What stage is the project at?  If the project is in the early stages it may be easier to appoint new professionals to undertake a new design whereas if the project is nearing the end it may be that little deviation on design is needed and the client does not need a replacement professional.