![[SAL Prac]: Ipso Facto Clauses in Construction Contracts – An Analysis of Section 440 of the Insolvency, Restructuring and Dissolution Act 2018](/Portals/0/EasyDNNNews/119644/images/Insolvency-resized-150-150-p-L-97.jpg)
Most construction contracts require a contractor to furnish an on-demand performance bond, which an employer can call on without proof of default. This arguably allows the employer to call on the on-demand performance bond if the contractor is undergoing restructuring proceedings or is insolvent at the material time. This article explores the impact of s 440 of the IRDA in respect of these scenarios and provides practical tips for navigating s 440.