Construction insolvencies

Construction is consistently one of the highest-volume sectors for UK insolvencies, covering housebuilders, main contractors, civil engineering firms and the specialist trades. The industry runs on fixed-price contracts, long payment chains and retentions held back until work is signed off.

That structure leaves contractors carrying cost and risk for months before they are paid, so a delayed project, a disputed payment, a client that fails, or materials and labour costing more than the contract allowed can each drain cash fast. When one firm in a chain fails, it often pulls subcontractors down with it.