In most major land construction projects in Norway, the Norwegian Standard (“NS”) is part of the contract documents. This standard contract document provides the framework for what can be done in the event of suspicion of an impending bankruptcy in the contracting party. The standards that apply to execution contracts (NS 8405, NS 8406, NS 8415, and NS 8416) and turnkey contracts (NS 8407 and NS 8417) mostly have a similar regulation of the main actions that the contracting parties can and cannot take in this situation.<\/p>\n
In the following, we will use the terms and “contractor,” but our suggestions will mainly be relevant to contracts based on building standards that apply between contractors and subcontractors as well.<\/p>\n
To begin with, we will look at the framework and measures that may be relevant for the developer in a situation where it fears bankruptcy of the contractor, before continuing our scope into the contractor’s perspective.<\/p>\n","protected":false},"excerpt":{"rendered":"
There have been several predictions that the construction industry is on the verge of a wave of bankruptcies. As legal advisors, we encounter entities worried about their contracting parties being on the brink of bankruptcy in ongoing projects. The concern is understandable, due to the current challeng-es of the industry, and the potentially significant consequences of a bankruptcy. This raises the ques-tion of what can be done to effectively protect one\u2019s own interest in the event of a potential bankruptcy. <\/p>\n","protected":false},"author":25,"featured_media":16147,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42],"tags":[785,134,135,787,786],"class_list":["post-19390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law","tag-bankruptcy","tag-construction","tag-contract-law","tag-contractor","tag-developer"],"acf":[],"yoast_head":"\n