Administrations jump by a third in October amid warnings more will follow
Summary
Construction sector administrations rose sharply in October, with 24 firms entering administration according to Creditsafe data. The article links the increase to ongoing margin pressure, fixed-price contract exposure, labour and financing costs, and delays associated with Building Safety Regulator gateway processes.
Why it matters
Construction insolvencies can disrupt live projects, delay remedial works and affect contractor availability for residential schemes. Surveyors may also see knock-on effects in project timelines, procurement risk and the reliability of supply chains on housing and mixed-use developments.
Key points
- 24 construction firms entered administration in October, up from 18 in September.
- Industry commentators expect insolvencies to remain elevated into 2027.
- Fixed-price contracts, labour costs and financing costs are squeezing contractor cashflow.
- Building Safety Regulator gateway processes are cited as contributing to delays in project decisions and starts.
- Failures can create knock-on cashflow problems for subcontractors, suppliers and other creditors.
Organisations:
Creditsafe, Woodford Heating and Energy Ltd, ThorntonRones, Torsion Projects Ltd, Interpath, Gardner and Co (Kent) Ltd, FRP Advisory, RSM UK, Hill Dickinson, Building Safety Regulator
Regulations:
Building Safety Regulator gateway approval processes
Locations:
Essex, Leeds, Gillingham
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