Surge in construction company insolvencies puts engineers on alert

The UK construction sector is facing a surge in company insolvencies in 2025, raising concerns for building engineers and subcontractors involved in design, supervision, and project delivery.

Several high-profile firms have entered administration in recent months, including Ardmore Construction Ltd, which faced escalating costs linked to fire remediation works under the Building Safety Act, with claims reportedly totaling £85 million against housebuilders such as Barratt.

According to PCB Today, Bedfordshire-based civil engineering contractor ANTS Group, employing more than 30 staff, owed more than £6.3 million to creditors at the time of administration, with projects including Papworth and Alder Hey Children’s Hospitals.

Mechanical and electrical contractor Cannock Building Services left a shortfall of £4 million affecting over 90 local suppliers, while Suffolk-based cladding firm English Architectural Glazing collapsed owing £24 million following financial difficulties across its parent group, the Clarison Group. Even the not-for-profit 3D-printed housing developer Building for Humanity in Lancashire filed for liquidation with debts exceeding £1.4 million.

Industry analysts point to inflationary pressures, supply chain instability, and the financial burden of safety remediation as key drivers behind these insolvencies. The trend highlights the need for greater financial transparency and competence assurance across the construction supply chain, prompting building engineers to review contracts, monitor subcontractor performance, and integrate risk management strategies to safeguard projects, clients, and professional responsibilities, they noted.