If a contractor is undergoing bankruptcy proceedings, you should cease making payments to them. All payments should be made directly to the trustee.

Bankruptcy proceedings do not automatically terminate the contractual agreement. You should first determine whether the trustee intends to continue with the agreement before engaging another contractor.

Have you paid an advance to a company that has since been declared bankruptcy? You will only be able to receive a repayment of your advance after the preferential creditors have been paid.

Does your project fall under the Breyne Act, and have the works not been completed by the time the contractor goes bankrupt? In that case, you may be entitled to financial guarantee coverage.