Project Certainty Guide: When a builder fails, is your project prepared?

Construction insolvency rarely affects a single party.

When a key contractor or subcontractor experiences financial distress, the impact can quickly spread across a project, creating delays, increased completion costs, cash-flow pressure and potential gaps in insurance protection.

Our Project Certainty Guide explores what contractor insolvency can mean for principals, head contractors and subcontractors, and the practical steps organisations can take to strengthen resilience before disruption occurs.

Who should read this guide?

The guide is designed for construction leaders responsible for project delivery, financial performance and risk, including:

  • Principals and project owners

  • Head contractors

  • Subcontractors

  • Project Directors and Construction Managers

  • CFOs, Risk Managers and Insurance Managers
    Inside the guide

The Project Certainty Guide explores:

  1. The potential financial and operational impacts of contractor insolvency

  2. Key questions principals, head contractors and subcontractors should be asking right now

  3. Practical considerations around financial due diligence, supply chain resilience, project security and insurance protection

  4. How can different participants in the construction chain strengthen project certainty

  5. A practical Project Certainty Checklist to help project teams identify potential vulnerabilities and areas requiring further attention

Download

Download the guide and use the Project Certainty Checklist with your team to pressure-test your current arrangements, identify potential gaps and strengthen project resilience before disruption occurs.


The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content in this publication.

© 2026 Lockton Companies Australia Pty Ltd.

Insolvency in construction rarely affects one party alone. This brochure unpacks what’s at stake for principals, head contractors and subcontractors. (opens a new window)
Project Certainty Guide