Businesses should consider the broadest range of solutions to issues to bring about the best outcome.
At Muckle LLP we like to think laterally and take a holistic approach to problems, taking a strategic view of what the issue is and how it might be solved. We apply not just our legal expertise, but also weigh up the commercial constraints to consider the best possible solution in the broadest context.
This is particularly relevant in the engineering sector, where projects with large and complex contracts can be put in jeopardy if someone in the supply chain is failing to deliver.
If a supplier goes bust, it can have devastating consequences for a business. It’s not just the obvious issue of being owed money and potentially losing out financially, for some it’s critical that their suppliers continue to trade for the sake of their customers and reputation.
In these circumstances companies need fast solutions. Communication breaks down and litigation can seem the only way out. However, there are other ways to keep businesses alive, so explore every option, including financial restructuring or identifying relevant funding sources.
We think it’s critical to encourage dialogue between all parties, as early as possible, so we can look at how to solve issues together. Finding ways for subcontractors to deliver can sometimes mean taking necessary control of the contract, but this safeguards the project, as well as the customer, so everyone gets paid.
At Muckle LLP we are extremely experienced in this area and have acted for numerous clients contractually engaged with suppliers in financial difficulties – often with significant risks attached.
Whatever the risks, it’s critical that businesses look at the big picture and consider all options. Acting earlier in the process could also mean different goals can be achieved for all parties involved, resulting in a better overall outcome.
For more information on business turnaround please contact Andrew Cawkwell on 0191 211 7957.