SMEs and specialist subcontractors have been hit particularly hard by Carillion’s fall, as many of them will have relied on the giant for significant amounts of their work. It is also likely that these subcontractors would have had to write off virtually everything owed to them by Carillion.
Scalable construction management software
- Our award-winning construction management software, EasyBuild helps construction site managers to have complete visibility of their projects across multiple sites on one platform.
Scalable construction estimating software
- ConQuest is our easy-to-use construction estimating software solution, chosen by over 900 UK-based contractors to increase control over estimating costs, improve accuracy in construction tenders and reduce problematic duplication of admin tasks.
Overview
More than 300,000 companies are connected to the sector and the industry employs 2.7m people. But there’s a worrying trend; despite government support measures through COVID-19, analysis by Experian shows the monthly average insolvencies for the first four months of 2022 were 30% higher than in 2019. Some 99% of these companies are SMEs and many - if not most - construction firms find themselves walking a knife edge when it comes to profitability and more importantly, cashflow. So how do you avoid being one of 75,000 construction firms estimated to be at risk of collapse? Read on to learn about the industry outlook and some practical measures you can take to avoid bad debt.
