The replacement formwork quote assumes it can keep the failed contractor’s assets

The cheaper quote includes something you may not own

After the formwork subcontractor enters liquidation, a replacement offers a lower completion price if it can retain certain panels or equipment left on site. Ask what assets the allowance assumes and who may authorise the arrangement. Their presence on your project does not establish that your business can trade them for a discount. Keep the proposed allowance conditional until the actual rights are assessed.

Identify the assets and proposed transaction

Obtain an itemised description, identifying numbers where available and the amount deducted from the quote. Ask whether the replacement intends to buy, use or remove the items. Preserve available delivery, hire and ownership records. Do not treat all material left together as one owner's property; some items may belong to another supplier or be held under a separate arrangement.

Respect the liquidation control position

ASIC explains that directors lose control when a company enters liquidation and that the liquidator deals with company property. Contact the liquidator through verified details about assets that may belong to the failed subcontractor. Obtain legal advice on ownership and any competing rights. The guidance does not establish that these particular items are company property or that the liquidator must approve the proposed allowance.

Source: ASIC: Insolvency for directors

Consider a hypothetical offset

Imagine a replacement quote deducting $5,000 for panels the contractor expects to take away afterwards. Your business does not have a confirmed right to transfer them. Show the completion budget with that allowance unresolved, rather than treating the discounted total as fully supported. A convenient quote term cannot supply the missing ownership evidence or permission.

Clarify the price if permission is unavailable

Ask the replacement for its position if the proposed transfer cannot occur. Keep any revised quote and conditions explicit before committing. Address technical suitability, safety and site access with the responsible professionals separately. Do not remove or dispose of the assets first and plan to settle the value with the liquidator later; the lawful arrangement needs to be established before implementation.

Document any authorised outcome

If the relevant parties agree to a transaction through the proper process, retain the authority, asset list, value and agreed effect on the replacement price. Keep any claim against the failed subcontractor separately recorded. A completion quote is only comparable when its discounts are deliverable, rather than funded by an assumed right to someone else's assets.