Pic: The Bolton News

By Harry Mottram: Across the UK building projects have begun to stall as more firms either pause work or go under as the cold economic winds of recession chill the industry to the bone. One of the most reliable indicators of the health of the industry is the Purchasing Managers’ Index which charts what is being spent – and the levels of expenditure are down according to market analysis this year. This year the number of insolvent construction firms has risen by more than 20% with 100% rise last year.

It has left thousands of suppliers, contractors and the taxman out of pocket. When URBN Construction in Plymouth went down earlier this year they owed £345,687 with the suppliers unlikely to get a penny and even HMRC is unlikely to get anything much despite being a preferential creditor. ICSM’s Ian Carrotte said every time a major firm goes bust it is a double whammy on the economy as not only does the firm renege on its debts it causes others to suffer a loss meaning investment from those affected is hit.

One of the main issues created when a firm goes under is the cost of administration. NMCN appointed Grant Thornton to handle their collapse and have seen fees reach almost £3 million. The construction firm has 3,000 unsecured creditors owed around £115 Million mounds. It has been reported that Grant Thornton ran up a bill of over £7 million when they handled the affairs of the collapsed retailer Debenhams. If the economy is in recession – one sector that clearly isn’t in trouble is that of firms that take over the administration of insolvent companies.

Some recent casualties include these:

ARCHITECTURE & BUILDING LTD    11475558

ARCHER & CHARLTON CONSTRUCTION LTD    11848807

BASL BUILDING AND MAINTENANCE LIMITED    08070071

BBR CONSTRUCTION LIMITED    11343822

BILLERICAY BUILDING (ESSEX) LTD     11511111

BIRCH BROTHERS (KIDDERMINSTER) LIMITED    01480871

CUSTOM MADE CONSTRUCTION COTSWOLDS LTD     10659223

D & M BARTHORPE LIMITED     07215799

GCO INTERNATIONAL LTD    11780528

GENSON BUILDING SERVICES LIMITED    08610745

HOLLIANNA INTERIORS DESIGN LTD    10134609

KMF CONSTRUCTION LIMITED    12075058

NORTON WINDOWS AND ROOFS LIMITED    13168576

ODYSSEY CONSTRUCTION SERVICES LIMITED    11694311

POWER CONSTRUCTION LIMITED     13349990

SENILGA CONSTRUCTION LIMITED     09722792

TOORLEY LIMITED    11711320

COUTURE CONSTRUCTION (NORFOLK) LTD    11633858

HIGH SPEC INTERIORS LIMITED     07248872

JAMIE HUNT CONSTRUCTION LIMITED    06546912

J H BUILDING & CARPENTRY LIMITED     10046878

JVH BUILDING SERVICES LTD     09505886

KMR CONSTRUCTION LIMITED    09216800

OSTIN CONSTRUCTION LTD     11652179

PLASTICS IN CONSTRUCTION LIMITED     05056012

SIK ELECTRICAL LTD     06179961

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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.comIan.carrotte@icsmcredit.com