Construction firm failures hit record July high
Summary
Construction sector insolvencies reached a record July high, with 32 business failures reported and year-to-date administrations running ahead of last year. The article highlights pressure from rising costs, low margins, reduced activity and liquidity strain, with some firms ceasing to trade and others rescued through administration processes or pre-pack sales.
Why it matters
Construction firm failures can disrupt live projects, delay handovers and affect the reliability of contractors and subcontractors used in residential work. Surveyors may need to factor counterparty risk, project continuity and potential defects or completion issues into inspections, valuations and due diligence.
Key points
- 32 construction businesses failed in July, the highest July total in the dataset.
- Year-to-date administrations reached 184, up from 170 in the same period last year.
- Rising costs, low margins and reduced activity were cited as key pressures.
- Torsion Construction ceased trading after administration, with most staff made redundant.
- Alderley Partnerships (2019) was rescued via a pre-pack sale after financial deterioration in 2025.
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