Jerram Falkus subcontractors may get payout
Summary
Administrators for Jerram Falkus Construction say some unsecured creditors, including trade creditors, may receive a dividend, although the amount remains uncertain. The outcome depends on recovery of intercompany debt and the costs of the insolvency process, with HMRC expected to rank ahead of trade creditors in the payment hierarchy.
Why it matters
For residential property surveyors, contractor insolvency can affect project delivery, defects resolution, retentions and the ability to enforce warranties or snagging obligations. It also highlights the financial fragility that can sit behind live schemes and the importance of checking contractor viability on instructed work.
Key points
- Administrators say some funds may be available to unsecured creditors.
- The exact payout depends on recovery of intercompany debt and insolvency costs.
- HMRC is expected to be paid in full if sufficient recoveries are made, ahead of trade creditors.
- Former employees have already received some payments for unpaid pension contributions and holiday pay.
- The collapse was linked to cashflow pressures, margin strain, cost increases and regulatory requirements.
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