Masterclass – ‘Insolvency Recovery Plans’ (26th November 2020)

The construction industry is notorious for having a high number of corporate insolvencies – and the numbers are almost certainly set to rise following the impact of the coronavirus pandemic. The disruption and financial impact of an insolvency can be devastating for a project, and the affects are felt throughout the supply-chain.

Stakeholders are often poorly prepared for such an event, and many of the protection measures are either missing or not maintained.

An Insolvency Recovery Plan is like a ‘lifeboat drill’ and provides a structured preparation for a potential insolvency event. The plan examines the project, and checks that the right protection measures are in place to mitigate the risks of an insolvency.

In this webinar, we will use interactive financial models to demonstrate the financial impact of an insolvency event part-way through a project – and explain how the various financial instruments and contract terms can assist to mitigate the impact of a supply-chain insolvency.

Our event, hosted and run by Amanda Bucklow and Richard Winson, will include a ‘breakout room’ session straight after the talk to allow you to explore and discuss the ideas raised with other professionals in the CIG team.

At the end of the Masterclass session you will have a good understanding of:

• Causes of insolvency in construction
• Signs of distress – and what are the warnings
• Practical implications of an insolvency event
• Impact of ‘over-value’ and manipulation of payment flow
• Financial protection methods – including performance bonds, parent company guarantees, and collateral warranties
• Carrying out appropriate due-diligence on contractors, and use of ‘Insolvency Recovery Plans’