Construction insolvencies to soar for next 18 months

Grant Prior 13 years ago
Share

The number of contractors going bust is set to soar above the current level of 1,000 companies becoming insolvent every three months.

Risk management specialists are warning that the number of failed construction firms will rise during the rest of this year and into 2011.

Latest figures show almost 1,000 construction companies became insolvent during the last three months.

Construction currently accounts for a quarter of all firms going to the wall.

And the situation is set to get worse according to Alan Harris, founding partner of commercial risk specialist CR Management.

He said: “While the insolvency figures back up what we have experienced with the main and subcontractors we work with, I think the true picture is yet to emerge and we will see a significant rise in insolvencies before the year is out.

“At the moment many contractors and subcontractors are supporting their businesses with cash generated when the market was healthy, however these reserves will not last forever and with no short term recovery in construction I anticipate that we will see a rise in insolvencies before the end of the year and into 2011.

“Alongside it I also expect to see a rise in disputes as companies are forced to take more desperate measures to get cash and stay in business.”

Latest news

Balfour launches new guide for inclusive behaviour

Right to Respect inclusivity initiative shows "where the boundaries are"
8 hours ago

VINCI to build new £100m Blackpool office scheme

Contractor to build new seven-storey regional hub for civil servants
16 hours ago

Shapps to lead new Net Zero Government department

Business Energy and Industrial Strategy to split into three new Government departments
17 hours ago

Administrators appointed at concrete flooring specialist

Malin Industrial Concrete Floors has worked with a host of major contractors
17 hours ago

M&E firms readied for £545m Pagabo deal

New framework to meet demand for smarter buildings, particularly in healthcare and education
23 hours ago

Mivan bags £100m haul of hotel and resi fit-out jobs

London hotel and prime residential orders put firm on track for £75m revenue this year
23 hours ago

Graham hospital site hut complex destroyed by blaze

Site offices ravaged by fire which took eight hours to get under control
2 days ago

Mace wins £150m over-station job at Liverpool Street

Latest win from Aviva Investors and Allianz Real Estate following earlier Moorgate contract
2 days ago

Turner & Townsend and alinea join forces

110 alinea staff join T&T cost management team
23 hours ago

Developer confidence high in big regional cities

Crane survey reveals Birmingham, Leeds and Manchester can count on resilient development pipelines
22 hours ago

Caddick wins £21m Oldham off gas housing scheme

West Vale housing job forms part of £160m plan for 1,100 homes in Oldham
23 hours ago

Buyers see brighter days ahead despite resi slump

"Construction can see a path through for better outcomes in 2023"
2 days ago

Australian firm to buy £300m gigaplant backer Britishvolt

New owner vows to complete giant factory in Northumberland
2 days ago

Project delays curb Ardmore growth ambitions

Refurb and housing specialist sees profit fall after challenging year of delays and supply chain failures
2 days ago

Scaffolders and sparks strike at antibiotic plant

Engineering construction workers down tools in bonus pay row
2 days ago

McAlpine bags £1bn Sellafield concrete structures deal

Contractor signs 17-year concrete structures and groundworks framework
2 days ago

Moving in to new markets paying off for McLaren

Contractor carving out new niche as leading player in heavy refurbs
5 days ago

Heavy materials sales fall amid slowdown in starts

Light side product sales grow helped by pace of activity for refurbs and energy-efficient retrofits
2 days ago

Plan to add retentions record to payment reporting law

Government consults on tougher reporting to include disputed invoices and retention policies
5 days ago

Morgan Sindall wins £88m Beckton DLR depot upgrade

Delayed work to start on Docklands Light Railway train maintenance depot in East London
5 days ago

Hare and Severfield win £250m Sellafield deal

Country's two biggest steelwork contractors secure 17-year framework
5 days ago

Max Steward returns to head up ISG’s Agility fit-out arm

Former ISG project director returns after three years to take up MD role
5 days ago

McLaren wins massive Portland House refurb

Construction to start this year on £380m revamp of 28-storey building in central London
6 days ago

Green light for £275m HS2 Midlands nerve centre

Trio of contractors battling it out to win huge new depot near Birmingham
6 days ago

Winners named for Government £10bn offsite framework

29 firms secure places on mega framework for schools, healthcare, defence and justice jobs
6 days ago

ISG, Amey and Costain now industry’s quickest payers – list

Average payment times from main contractors slip by a day
7 days ago

Staff at Outco Surfacing start looking for new jobs

Administration notice filed two years after acquisition of NMC Group
6 days ago

£4.75m building work provision tips Higgins into the red

Partnerships business counts cost of changes to building safety rules
6 days ago

John F Hunt snaps up London temporary works design firm

Demolition contractor buys geotechnical and structural engineering design specialist RKD Consultant
6 days ago

Vital Energi lands £13m package at Plumstead regen site

Specialist will start on site this summer helping to transform the former home of Arsenal FC
6 days ago

Contractor services