Will a replacement contractor cost more than the original?
Usually. A contractor taking over someone else's half-finished work prices in the risk of unknown defects, missing records, re-mobilisation and a compressed programme. The extra cost of completion over the original contract balance is generally a loss the owner can claim against the defaulting contractor, but if that contractor is insolvent the claim becomes an unsecured proof of debt. That is why retention, unpaid balances and bonds held by the owner matter more than the claim itself.
From the RRD Field Guide, checked against the sources cited in Contractor Insolvency in Singapore: How Owners Protect Themselves If the Contractor Goes Bust. General information, not advice for your project.
The fuller picture
If your contractor becomes insolvent, the money you have not yet paid is your main protection. Pay only against work done, hold a performance bond and check its expiry, keep the right to terminate and step in, and use SOPA section 24 to pay unpaid subcontractors directly where needed. Anything the insolvent contractor still owes you becomes a proof of debt in its liquidation, usually recovered at a fraction.
More questions on this topic
- My contractor has stopped work and is not answering. What should I do first?
- Can I call the performance bond if the contractor goes into liquidation?
- What is SOPA section 24 and how does it help an owner?
- Can my contract say I may terminate if the contractor becomes insolvent?
- How do I claim money from a contractor that is in liquidation?
- How much deposit should I pay a renovation or fit-out contractor?
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