- Carefully scrutinise proposed sub-contract conditions, particularly bespoke terms, as these may include rights not to pay you if there is an upstream insolvency.
- Consider advance payment for procuring materials and equipment.
- Be wary of agreeing extended payment cycles as this will increase your exposure.
- If you are in a strong bargaining position you could ask for a performance bond from the main contractor and/or advance payments and/or a weighted payment schedule which is front loaded.
- Retention of title provisions (but see above regarding risk of title transferring when goods become incorporated into a building).
- A right not to pay your sub-contractors and suppliers if you are not paid due to an upstream insolvency.
- Suggesting a project bank account and/or escrow arrangement is put in place so that payments from the employer filter down through to the supply chain quickly.
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