How to Cope With Contractor Insolvency

May 14, 2025
The UK construction industry has been facing significant challenges, with reports of increased insolvencies affecting organisations both big and small. Contributing factors such as rising material costs, inflation, borrowing costs, and fixed-price contracts all add to the financial pressures.

The Construction Products Association highlights a recent surge in insolvencies among larger firms, signalling a cascading effect down the supply chain. Smaller, specialised subcontractors are particularly impacted, representing around 60% of total insolvencies.

This article advises surveyors in this environment to be vigilant, looking for indicators of insolvency and outlining recommended actions, emphasising the importance of understanding insolvency terminology and procedures under different contract forms so that they can be better prepared.

The article written by BG Partner Stuart Wigley was originally published by RICS as part of the Built Environment Journal Series. You can read it here.

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