It may have not gone unnoticed that I’ve had a bit of a bee in my bonnet about Carillion, the way that they acted, the way that they allowed the company to fail and the way that they treated their subbies.
But most of all, and of interest to many IPs and subbies is “What will be the knock-on effect?”
Construction News reports Construction insolvencies soared 73 per cent in the first quarter of 2018 compared with the final quarter of 2017, according to data from Creditsafe.
There were 934 construction industry insolvencies in Q1 2018, up from 539 in Q4 2017. Failures in Q1 were also up 9 per cent from the same period in 2017, where 856 construction insolvencies were recorded.
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Carillion’s collapse in January has been cited as a major factor behind the rise, with four out of the five largest failures during the period linked to the contractor’s liquidation.
Creditsafe’s Watchdog report also revealed suppliers’ bad debt – money owed by contractors to suppliers – was up 66 per cent in Q1 compared with the fourth quarter of 2017.
Debts owed to the construction sector by others were up 34 per cent over the same period.
These factors pushed the number of firms classed as at ‘high risk’ or ‘very high risk’ of insolvency up 8.8 per cent to 37,702.
Despite the rising insolvencies and bad debts, the number of new construction companies formed was up 18.9 per cent quarter on quarter from 14,338 to 17,041.
So how can we help?
Liquidators and Administrators; CRS are available to collect in your insolvent construction ledgers on a ‘no win, no fee’ basis. We have been trading for 8 years and have an excellent track record, please check out our testimonials
https://contractrecovery.com/testimonials and get in touch!
Subbies and tradesmen; Don’t let your clients take advantage and use you as an interest free loan! Get in touch with our Nathan McQueen nathanm@crsgroup.solutions and make sure your overdue invoices are paid!
Subbies, New Start Companies; CASH IS KING! Don’t let your payment terms bring down your business! Speak to Steve Munro at specialist Construction Lenders, Cirrus 4Syte (07710 710809) stevem@cirrus-4syte.com www.cirrus-4syte.com for all your funding requirements.
Tim Shore
Managing Director – CRS Group