Just because Carillion hasn’t been in the headlines for a few weeks and you may not have felt the impact of their demise yet, don’t think that we are out of the woods. Obviously, there will be those businesses that have been directly impacted, which hopefully, will be actively seeking professional advice, but the number of these are likely to be relatively small compared to those that will be indirectly affected.
Don’t forget that this has been one of the largest corporate failures ever seen in this country and its impact will ripple through the economy for months and possibly years to come. Indeed, I expect that “Carillion” will be used as an excuse for at least the next four years by the directors of many failing subcontractors, no matter whether it is the real reason or not! It’s what happened in Yorkshire following the miners strike of the early ‘80s!
Whilst it’s easy to be flippant, the reality is that many subcontractors will feel the effects of Carillion, but not yet!
And don’t forget that there are other failures, such as part of the Lagan Group in Belfast and those we don’t yet know about who are struggling to hang on. Even outside the construction sector, there are some big failures which will impact on the economy.
So, the trick is to keep close to construction businesses and sub-contractors in the months to come and get in there early whilst there are still options available, jobs still to save and assets to realise.
Construction and contracting is a very specialist area. Contracts can be complex and the implications of getting it wrong can make the difference between survival of the business or failure or the difference between getting a return to creditors and not! CRS are experts at advising on how to deal with contracts and how to best recover debts.
As soon as you get involved with a construction or contract business please get CRS to advise. We will review any ledger and contracts for free…..yes we will give you a brief overview of any ledger or contract to help you initially assess the true position of your client without any charge.
So, don’t try and do it on your own, call me! I’ll ensure that you get a meaningful overview of your client’s position and suggest ways that together we can resolve their problems.