According to KPMG restricted access to finance, rising input prices and project delays caused by political uncertainty have started to take their toll.
Administrations in the sector jumped up from 49 in the second quarter to 76 in the third quarter of this year which saw Pochin’s as one of the high profile victims.
Regional contractors like the North West’s Marcus Worthington and South West’s Dribuild also went to the wall in the worsening economic climate.
The accountancy firm warned that current headwinds looked set to get worse in coming months and could herald the start of a new wave of insolvency activity.
Blair Nimmo, head of restructuring for KPMG UK, said: “The building and construction sector continues to feel the strain of the ongoing economic uncertainty across the UK, with a softening in activity and delays in investment for large construction projects.
“Indeed, there has been pressure throughout the whole supply chain, not least due to high input prices, all of which has resulted in a spike in the number of insolvencies.”
He warned: “Add to this, reducing credit insurance appetite, the declining availability of skilled labour and limited options to refinance and raise funding, and it’s clear to see that pressure in the sector is only likely to increase.
“Recent PMI data – which recorded five consecutive months of contraction – tells us that unless clarity and confidence return to the sector, financial distress and increasing numbers of insolvencies are likely to prevail,” he added.