Construction administrations fall for second consecutive month
Summary
Construction sector administrations fell for a second consecutive month in August, but the monthly total remained elevated compared with the same month in 2023. The article highlights ongoing financial stress among contractors, including insolvencies at Ethical Power Renewables and Avtar Construction, despite some easing in cost pressures.
Why it matters
Construction insolvencies can disrupt live projects, delay repairs and maintenance, and increase the risk of contractor failure on residential schemes. Surveyors may need to factor contractor stability into due diligence, project monitoring, defect remediation and valuation assumptions.
Key points
- 25 construction firms entered administration in August, down from July and June
- Ethical Power Renewables entered administration and was sold in a pre-pack deal
- Avtar Construction also collapsed after reporting significant creditor liabilities
- Commentary points to weak pipelines, tight margins and cashflow pressure across the sector
- Repair and maintenance work is supporting output, but not broad sector growth
Organisations:
Creditsafe, Interpath, Ethical Power Renewables Ltd, Ethical Power Connections, Ethical Power Group, Ethical Power Utilities Limited, Triple Eight Energy Ltd, HMRC, Avtar Construction Ltd, FRP Advisory, MHA, Pegasus Group, Construction Products Association
Regulations:
Companies House, winding-up petition, notice of intention to appoint administrators
Locations:
Wiltshire
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