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My materials are on a site the administrator now controls

Our unfixed materials and plant are on site, the gates are locked, and we don't know if we'll see them again.

Updated: . By Jack Butler-Kettle, Construction Claims Consultant.

What's happening?

Materials built into the works generally become part of the building, whoever paid for them. Unfixed materials may still be yours. That depends on your terms keeping ownership until you were paid, and on you showing which items are yours. Even then, you can lose them if the employer, your main contractor's client, has already paid for them under the main contract. Your own plant is a separate question, but it still has to be identified and collected by agreement.

The risk is time. A replacement contractor can start using what is in the compound within days. Once your goods are fixed in, the argument is over. Taking them back yourself from a site you no longer control can create a claim against you. So the evidence and the written claim have to come first.

The solution

Photograph and list what is yours the same day, and match each item to its delivery ticket, invoice or serial number. Separate what is built in from what is loose. Then claim the loose goods and your plant from the administrator in writing, with the evidence attached, before anything is moved or used. Ask your solicitor on day one whether your terms kept ownership. Agree any collection with the administrator, and never just take the goods.

Insolvency Claim does the listing, matching and written claim with you on the first day. Your solicitor gets the ownership question with a complete file. What cannot come back goes into your claim as a debt. Our Handover Pack then shows how Insolvency Loss Prevention uses retention of title terms and delivery timing to protect your next job.

Example

Illustrative example. The scenario and figures are invented.

The facts

A curtain walling subcontractor's main contractor enters administration and the site is locked. In the compound are 40 crated glazed units worth £52,000. Two of the subcontractor's own mobile elevating work platforms are on the scaffold line.

What happens

  1. The site manager photographs each crate with its unit marks and each platform with its serial plate, and matches every item to its delivery note.
  2. The claim to the platforms and the units goes to the administrator the same afternoon, with the photographs and delivery notes attached.
  3. The platforms are the subcontractor's own plant, and collection is agreed for 3 days later.
  4. The subcontract has no retention of title condition, and the main contractor's order says ownership passes on delivery. So the solicitor advises that ownership of the units has probably passed.
  5. The units go into the claim as a debt at their invoiced value.

What was on site

ItemValueResult
Two work platforms£38,000Collected by agreement
40 glazed units£52,000Claimed as a debt

The outcome

The platforms are back within a week, and the units are claimed as a debt. The Handover Pack recommends Insolvency Loss Prevention. That means retention of title in the order terms, and units delivered in 2-week batches, so the compound never again holds £52,000 of unpaid stock.