Groundwork firm CJ Haughey in administration
Published: 10 December, 2010
COVENTRY: CJ Haughey Construction, a groundwork and concrete specialist, has been placed in administration.
Administrators from Birmingham accountancy firm Poppleton & Appleby were called last week.
The Enquirer web site reported that a rival contractor said: "We went up against them a few times and lost out to bids that left us sat in a room wondering where we had gone wrong.
At least 13% of contractors admit to bidding work at break-even prices as a major construction survey confirms the spread of cut-throat tendering across the industry.
Accountant KPMG's latest global construction survey shows that half of UK contractors have been forced to slash their bids by 10% during the last year as competition for work gets desperate.
Fiona McDermott, KPMG's global head of building and construction, said: "Globally, around 5% of people are increasing prices, but in the UK everyone's reducing. The UK is clearly feeling the pain more, and this shows just what a really challenging time it is.
"The expectation is that when the investigation into Connaught's collapse is complete it will be found they were pricing below break-even levels. I think it is inevitable we will see more similar fall-outs."