Insolvency Service data indicates that construction accounts for the largest number of companies entering formal insolvency process, by sector. This data is based on self-designated SIC codes used at Companies House, and does not take account of the size of the companies concerned: the construction sector involves a significant number of SMEs including ‘one-man-band’ contractors. Those points made, recently, a number of larger main contractors have become insolvent, impacting residential construction and social housing in particular.
For employers, this means that pre-contract due diligence, effective monitoring during a project and a proper understanding and management of insolvency risk after…