What happens if a sub-contractor suddenly goes out of business?
Unfortunately, this does happen. If this happens during the construction process, the money that is owed to this subcontractor, (only for the work that he has completed), does not get paid to them. A replacement subcontractor will need to be contracted to complete the remaining work. After the new subcontractor has been paid in full and after all other expenses incurred by the homeowner or other trades due to the subcontractor going out of business have been determined, the remaining money is paid to the province for them to reimburse for any claims against the said subcontractor that went out of business.
