Insolvency in the Construction Sector
When compared to the rest of the UK economy, companies within the construction sector are a lot more vulnerable to insolvency. There are numerous reasons why the industry seems to suffer the most when it comes to insolvency rates – ranging from rising inflation and cashflow issues, to unpaid invoices and Brexit blues.
Specialists in the construction sector
At Clarke Bell, our Licensed Insolvency Practitioners understand these problems and have extensive experience helping construction companies during financially uncertain times. We can ensure your company can deal with the growing problems of the sector and, if insolvency is required, we can help you move forward legally and positively.
We provide a number of services for construction companies, including Creditors’ Voluntary Liquidations (CVLs).
Our professional Insolvency Practitioners will aim to resolve your cash flow crisis and debt problems, by providing the building blocks to get your business back on track.
Have you fallen victim to subby-bashing?
Many subcontractors in the construction sector are falling victim to “subby-bashing”, which can cause cash flow problems, and lead to a complete closure of the business.
Larger firms are frequently delaying payments to subbies working for them, knowing they won’t have the resources to fight back, and that they won’t want to risk losing future work.
It’s a shocking practice, which unfortunately is still all too prevalent in the construction sector.
- Many small to medium-sized enterprises (SMEs) across the UK are still owed over £50 billion in late payments.
If you’ve fallen victim to this, you can utilise our expertise at Clarke Bell, and take the necessary steps to recover your losses, depending on the circumstances. You can appoint us as a liquidator to act on your behalf, and we can help you reclaim the money you’re owed.
Our Insolvency Practitioners will have the full weight of the law behind them, and we’ll rigorously look into your debtor’s affairs, and ensure we maximise the chances of you getting your money back.
Struggling with CCJs, late payments or bad debts?
After being issued with a County Court Judgement (CCJ) you should deal with it straight away. Having a CCJ against your company can not only affect its credit rating, but it can also disrupt supplier contracts, future loans and cause numerous creditor problems. It could eventually lead to a situation where you find the ‘Sheriffs Are Coming’ to your offices.
A rise in CCJs has certainly lead to an increased closure rate of businesses. The construction sector also tends to have a higher value of unpaid invoices, late payments and bad debts than most other industries.
Our Licensed Insolvency Practitioners can provide you with the professional advice and expertise that you’ll need when it comes to dealing with a CCJ situation, resolving a late payment problem or dealing with debt.
Our advice is free and we will always aim to help you regain control, and peace of mind.
Changes to data breach fines are coming this year which are threatening to add further risks to the sector – largely due to the fact the industry tends to be vulnerable to certain cyber-attacks, like ransomware.
Other stats released by the Office of National Statistics show a worrying trend of persistent new company insolvencies in the sector – with 2,557 occuring in 2016 alone. Coupled with these problems plaguing the industry, the Construction Products Association’s outlook for the sector remains bleak for 2018. A potential rise in the price of imports, along with a fall in business and consumer confidence in the UK economy also pose future risks to the industry.
Many company directors opt for the solution to cease trading and enter into a Creditors’ Voluntary Liquidation (CVL). A CVL allows you to deal with any business debts in a legal way, gives you total peace of mind and lets you take back control.
This solution may not be necessarily right for you, which is why our experts are on hand to provide free advice to help you make the best choice.
Contact Clarke Bell today on 0161 907 4044 or [email protected]