With insolvency risk beginning to rival inflation as a threat to the industry, Director of KPMG’s Major Projects Advisory Team Joe Manning joined the Build UK Forum earlier this week, where he outlined how to identify and respond to signs of insolvency in the supply chain. A combination of the following warning signs may indicate that a company on site is in distress:
- A high turnover of staff
- A general decrease in labour
- A slowdown in the progress of the works or the works not achieving project timescales or milestones
- Poor quality workmanship and/or an increase in defects
- Removal of plant, equipment and/or materials.
KPMG has published a summary on preserving value under supply chain pressure which includes the measures that can be put in place to protect against insolvency and the steps that should be taken in the event that it occurs.