Cripps Annual Construction Seminar 2018
Unfortunately, the threat of insolvency has once again raised its head in the construction industry. The industry saw 2,633 company insolvencies in 2017. The number of construction firms facing insolvency saw a 0.5% increase year on year. This together with other issues in the sector – cash flow (late payments and bad debts), the intense competition for the larger more profitable projects and the lack of capital assets to act as collateral leading to borrowing difficulties – led the press to speculate that over a quarter of UK construction firms were heading to insolvency by 2020.
The adage that “no one is too big to fail” sadly proved true for Carillion. In July 2016, it had a market value of £1bn, expanding into Canada, the Middle East and the Caribbean. The company boasted a large number of employees – 20,000 in the UK alone and 42,000 worldwide. However, as business expanded, many of its contacts became unprofitable and the beginnings of the collapse emerged in 2016.
With the demise of Carillion and BREXIT on the horizon, do you feel your business is ready for the challenges ahead? It does not all have to be doom and gloom. To a degree, we have been here before in recent recessions and the industry has developed tools which can help. We will be exploring these at our annual construction law seminar at Hardwicke Chambers in London next Thursday, 29 November 2018 (starting from 5pm) and there are still a few limited places available.
If you would be interested in finding out more, please email us at firstname.lastname@example.org to reserve a place.