Construction: rescue and insolvency advice
Financial pressures in construction
Construction businesses can appear profitable while cash remains tied up in retentions, disputed valuations or unfinished projects. A useful review looks at individual contracts and the cost to complete, not just the total order book.
- Retentions and disputed payment applications
- CIS, VAT and subcontractor balances
- Hired plant, materials and live site commitments
What to review before deciding
Prepare a contract-by-contract schedule of amounts claimed, received and still required to finish the work. Identify materials owned by others, performance obligations and any threatened termination. Keep site safety and security arrangements in view while financial advice is obtained.
Rescue, repayment and closure options
The first question is whether the underlying business can meet its ongoing costs after realistic changes. A business rescue review can examine margins, creditor discussions and the resources needed to keep delivering work. Where tax arrears are part of the problem, HMRC Time to Pay depends on an acceptable, affordable proposal; approval is not guaranteed.
For a suitable limited company, a Company Voluntary Arrangement or administration may warrant consideration. If recovery is not viable, read about Creditors’ Voluntary Liquidation. Formal appointments require a licensed insolvency practitioner. The right route depends on the legal structure, jurisdiction and facts, not the sector label alone.
Prepare for a confidential discussion
Bring recent accounts, a current bank balance and a list of overdue payments. For construction, also prepare records covering retentions and disputed payment applications; cis, vat and subcontractor balances; hired plant, materials and live site commitments. Identify any payment demand, hearing or other deadline at the start of the conversation.
Ask for the proposed scope of work, likely fees and any assumptions in writing before agreeing to a paid service. An initial enquiry does not commit you to a procedure. Complete the enquiry form or call 01246 912052 to explain the position.
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Related guidance
Construction: common questions
Only include receipts at realistic dates and account for disputes or release conditions. A retention shown in the accounts may not be accessible cash when wages and suppliers fall due.
Assess the remaining costs, likely receipts and contractual consequences with advisers. Completing work can sometimes preserve value, but continuing without a funded plan may deepen the problem.
Check hire agreements, ownership and collection arrangements. Record equipment locations and condition. Do not sell hired plant or assume the company owns materials simply because they are on its site.
Further reading: Closing a limited company. Guidance reviewed 1 November 2026. Regulatory requirements and procedures vary across the UK; obtain advice for your location and business structure.