Civil Engineering Reference
In-Depth Information
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if it has sequestration awarded on the estate of the partnership under section 12 of
the Bankruptcy (Scotland) Act 1985 or the partnership grants a trust deed for its
creditors.
If the party is an individual, the circumstances are if:
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he has a bankruptcy order made against him under Part IX of the Insolvency Act
1986; or
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his estate is sequestrated under the Bankruptcy (Scotland) Act 1985 or he grants a
trust deed for his creditors.
A party also becomes insolvent if he enters into an arrangement, compromise or com-
position in satisfaction of his debts (excluding a scheme of arrangement as a solvent
companyforthepurposesofamalgamationorreconstruction);orinthecaseofapart-
nership, each partner is the subject of an individual arrangement or any other event
or proceedings referred to above. Each of the above circumstances also includes any
analogous arrangement, event or proceeding in any other jurisdiction.
Insolvency of the Contractor
Clause 8.5 deals with the insolvency of the Contractor. If the Contractor is Insolvent
as defined above, the Employer may at any time by notice to the Contractor terminate
the Contractor's employment under the contract.
The Contractor is obliged to immediately inform the Employer in writing if they
make any proposal, give notice of any meeting or become the subject of any pro-
ceedings or appointment relating to any of the matters referred to in the definition
of Insolvency above. As from the date the Contractor becomes Insolvent, whether or
not the Employer has given such notice of termination, the provisions of the con-
tract setting out the payment and accounting procedure upon termination apply as
opposed to any other payment provisions; the Contractor's obligations to carry out
and complete the Works are suspended, which in the SBC includes the design of the
Contractor's Designed Portion; and the Employer may take reasonable measures to
ensurethatthesite,theWorksandSiteMaterialsareadequatelyprotectedandthat
such Site Materials are retained on site. The Contractor is obliged to allow and not to
hinder or delay the taking of those measures.
Insolvency of the Employer
Clause 8.10 deals with the Insolvency of the Employer. If the Employer is Insolvent,
theContractormaybynoticetotheEmployerterminatetheContractor'semployment
under the contract.
The Employer is obliged to immediately inform the Contractor in writing if they
make any proposal, give notice of any meeting or become the subject of any pro-
ceedings or appointment relating to any of the matters referred to in the definition
