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Rights and Responsibilities of a General Contractor When a Subcontractor Files Bankruptcy



In the construction industry, a general contractor's reputation depends on subcontractor performance. When subcontractors face bankruptcy, it can threaten project timelines, budgets, and safety. In this eBook we provide essential insights for safeguarding your construction business.

Learning Objectives:

  1. Bankruptcy Insight: Grasp the intricacies of bankruptcy (Chapter 7 and Chapter 11) and how they impact subcontractors and general contractors.
  2. Business Impact: Understand how subcontractor bankruptcy can lead to double payments and project disruptions.
  3. Legal Empowerment: Explore four critical rights retained by general contractors when subcontractors file for bankruptcy, including proof of claim and termination.
  4. Responsibility Clarity: Learn your responsibilities when subcontractors face bankruptcy, from mitigating damages to insurance company notifications.
  5. Protective Strategies: Discover practical tactics to shield your business, such as monitoring subcontractor finances and enhancing contract understanding.
  6. Tech Advantage: Uncover the role of technology, like Avetta's Business Risk platform, in proactively managing subcontractor finances.

This eBook empowers general contractors with the knowledge and tools to navigate subcontractor bankruptcy effectively, ensuring construction operations' ongoing success and resilience. Prepare, protect, and thrive with Avetta's expertise.

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