In 2024 we witnessed the insolvency of several ISG entities and the impact upon the progress of projects and the supply chain. According to government statistics, the number of registered company insolvencies in England and Wales stood at 1,747 in October 2024. Although this is slightly fewer than for the previous month and for the same period a year earlier, insolvencies remain higher than in 2014-2019 and during the pandemic. Unfortunately, the economic outlook suggests little improvement this year.

Contractor insolvencies can disrupt projects and create uncertainty, prompting contract reviews, suspensions or terminations, and even payment withholdings. To manage these risks, it is vital to conduct appropriate due diligence, stay alert on projects and maintain solid contractual and financial strategies. We may see a rise in “smash and grab” adjudications as companies strive to sustain cash flow.

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