Large builders start showing the strain

Published:  08 August, 2012

LONDON: Business liquidations in construction jumped 12% when those is all other sectors fell according to quartely figut\res from the Insolvency Service.

Construction companies now make up nearly a quarter of all firms forced into compulsory liquidation.

Alan Harris, director at specialist construction risk management firm, CR Management said: "The construction industry continues to jog along the rough and uneven road to recovery which now looks to be a long way off.

"As a consequence a number of main contractors that we are working with are looking again at their structures with a view to making further efficiency cuts in order to compete in the current and projected market and more will follow suit, although for some they will have left it too late

"Over the past quarter it has been noticeable that the companies becoming insolvent are of a larger size and hence are having a greater impact on the market.

"In particular a number of mechanical and electrical contractors have ceased trading putting increasing pressure on main contractors to find replacement subcontractors who will guarantee the original work.

"This also puts increasing pressure on programme times leading to the possibility of projects falling behind and all of the cost ramifications this carries."

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.