Construction Industry: Administrations On the Rise

Construction Industry: Administrations On the Rise

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

According to data provided by Creditsafe, May saw 35 construction companies fall into administration. This is a considerable jump from the 9 construction companies who fell into administration in April, although February is still the highest month of 2020 with 36 administrations recorded.

The coronavirus has had a huge impact on many construction businesses with little work being carried out in April. Unfortunately, it is highly likely we will see a similar increase of administrations in June and possibly beyond. 

If you are in the construction industry and struggling with cash flow, you could have vital funds tied up in both your debtors’ ledger and retentions. Therefore, it’s worth taking a look to see how much you could release to ease your cash flow issues. After all, you’ve done the work so should be getting paid for it!

Not confident in chasing invoices or simply don’t have the time? We work with many businesses within the construction industry and have a high recovery success rate. We also work on a no collection, no fee basis so if we aren’t successful, you don’t have to pay us a penny.

To show you how we have helped others like you, take a look below at just some of our case studies from within your industry: 

 

Concrete Materials Company

Debt: £13,000

Challenge: Monies were owed to our client for concrete they had provided, however, the debtor was refusing to settle due to a dispute.

Solution: We held negotiations with the debtor over a period of 2 months.

Result: Payment was achieved in full, plus £1,000 towards our client’s costs.

 

Steel Erection & Fabrication

Debt: £2,530

Challenge: Our client supplied steel erection and fabrication services to the debtor company and were struggling to collect two unpaid invoices totalling £2,530. The time being spent chasing the debt was distracting the client from other projects and they passed the case to us. We attempted to contact the debtor, but no response was received.

Solution: We pursued recovery of the debt from 1st letter all the way through to High Court Enforcement, having successfully obtained judgement. When Enforcement Agents visited the debtor company’s trading address, they found the debtor company actively trading. Having ignored all of our correspondence, costs had been added to the debt and as a result the agents began taking control of goods. At this stage, the director paid in full.

Result: Payment in full, plus costs.

 

Construction Procurement, Commercial & Project Management

Debt: £4,380

Challenge: Our client undertook project work on behalf of the debtor which remained unpaid for 6 months. Various requests and promises of payment were made but no monies received. A final demand letter was issued, then a spurious dispute was raised by the debtor.

Solution: Following various communications with the debtor, we established there was no valid dispute. The debtor promised payment by instalments but failed to do so. Court proceedings commenced and a County Court Judgement was obtained. Notice of Enforcement proceedings were issued and the debt was finally paid.

Result: £5,200 (payment in full plus costs)

 

Need our help? Contact us today!

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Prompt Payment Code
Blog

What is the Prompt Payment Code?

The Prompt Payment Code (PPC) was established in December 2008 and is a voluntary code that sets the standard for payment practices. In March 2020,

Do You Have A Debt That Needs Recovering?

drop us a line and we'll help you get paid

debt being written in notebook

Get In touch

0800 009 6106