Unfinished contracts need a job-by-job decision. Closing the company or considering insolvency does not make delivery, payment and ownership questions disappear.
Corporate Recovery Partners
01 / 06
One closure email cannot resolve several different contracts
A maintenance company is considering liquidation with several building contracts partly complete. Some clients have paid ahead, others owe progress invoices, and tools remain on different sites. The director wants to send one closure email to everyone. Each contract has a different financial position and needs records that allow advisers to assess the next step.
For every job, record the contracting parties, scope, work completed, amounts received, amounts outstanding and estimated cost to finish. Include variations, defects, notices and critical dates.
Identify materials, equipment and documents located at each site and who owns them. A general work-in-progress total cannot show whether one contract holds customer property or another contains an unpaid claim.
Get advice on suspension, termination, transfer and completion obligations under the actual contracts. Do not assume insolvency concerns automatically permit abandoning work or assigning it to another company.
Where a liquidator has been appointed, ASIC’s guidance places company control with that practitioner. Give them the contract schedule and refer customer decisions through the authorised process.
Gather evidence of work done, inspection results, invoices and approvals. Secure access to project records and identify the person who can explain them. Preserve genuine defects and disputes rather than presenting every claim as certain cash.
Avoid rushing invoices for work not performed or altering dates. The aim is an accurate account of the company’s position, not an improved-looking ledger before handover.
Provide customers with an approved factual update and the correct contact. Arrange any authorised access or collection safely, retaining an inventory and receipt.
Keep staff from promising completion dates or refunds that have not been approved. A consistent process protects the evidence and gives the adviser or practitioner a workable basis for handling each contract.
