The total number of construction insolvencies in England and Wales rose 12.4% year on year in the second quarter of 2018, according to official figures.
There were 696 insolvencies in construction in the second quarter of this year, compared to 619 in the same period a year before, provisional Insolvency Service statistics indicated.
That made it the highest second-quarter tally of construction insolvencies since Q2 2014 (when there were 716 construction insolvencies), with the bulk of the increase coming from specialist firms.
The total of construction insolvencies for the first half of 2018 now stands at 1,476, up from 1,352 in the same period a year before – an increase of 9.1%.
In Q2 2018, 217 insolvencies were accounted for by firms involved in the construction of buildings, another 37 were in civil engineering, and 442 were in specialised construction activities.
During the same period the year before, 219 were involved in the construction of buildings, 28 were in civil engineering, and 372 were in specialised construction activities.
Meanwhile, the Insolvency Service confirmed that in the 12 months to Q2 2018, construction had the highest number of insolvencies of any industry, excluding bulk insolvencies, ahead of wholesale and retail trade, and repair of vehicles.
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The companies make large financial outlays over long time periods with no income coming back. Hence any delays due to inferior workmanship; poor materials or services or poor delivery of same; and highly volatile currency fluctuations; catastrophic weather or labour problems; costs of re-work or unseen problems in completing some other person’s work; supply chain problems etc of a key steps in sequence causing a blockage will negatively impact the worktime needed and this add to the cost. Very few are not controllable but this means constant monitoring and response as close to real time as possible are needed.