When a construction company (whether it be the main contractor, sub-contractor, or a specialist contractor) has gone into liquidation, the next step is to find the resource to pay its creditors.
With that in mind, if there are unresolved claims in motion, liquidators may request that these claims are pursued with a view to reaching a settlement and generating cash. While auditors and accountants understand the principle of claims resolution in monetary terms, they typically do not have the expertise to assess realistic outcomes and follow a claim through.
At Tungsten Capital, we are often asked to work with liquidated companies and liquidators on:
- Claims recovery
- Variation valuation
- And payment out-turn figures
With more than 30 years’ experience in the construction claims industry, our seasoned professionals have the skills and track record to support financial professionals who may require assistance navigating the industry and achieving the best outcomes.
While we can support companies at any stage of the liquidation process, in an ideal scenario we would suggest the following actions:
It’s worth enlisting the support of a claims consultant to conduct a thorough review of any outstanding claims to assess whether they warrant pursuing. For this reason, it’s advisable to keep them out of the liquidation process at this stage, if possible. This is an area in which we can advise.
Our claims consultants can work with the liquidator to assist in the recovery of monies. In our experience, the industry reacts better to seasoned insiders rather than anonymous debt collectors.
Looking forward, as contractors and their companies seek to start afresh, we are here to help set up commercial checks and balances in your new company, so it does not fall into the standard traps of the construction industry. With this in mind, we can help with the following areas, as well as other tasks and specialist skillsets:
- Planning cash flow
- Assessing liabilities
- Assessing opportunities