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Suppliers forced to take more aggressive action on unpaid bills
Mark Calver
Published: 4th May 2025
Updated: 14th Sep 2025
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Increasing tension in the supply chain has spurred a four-fold hike in the number of winding-up petitions issued against builders and civils contractors.
Construction in distress by rising prices
According to figures collated by accountant Mazars, leading builders’ merchants applied to the courts to wind up 185 construction firms during 2022/23 compared to just 44 petitions in the prior year.
Sharp increases to the prices of many building materials pushed many construction firms into distress leaving them struggling to pay their bills.
With insolvency rates already on the rise, suppliers and builders merchants may also be more readily turning to the courts in an effort to recover unpaid bills before they turn into bad debts.
Mark Calver, Director
Nationwide Recruitment
Pressure on Contractors
This is a sign that the financial pressures on the building industry are starting to rise sharply.
Raw materials, energy, borrowing, labour – it’s all become more expensive. Add that to the long-term problem of late payment and the financial stress is enormous.
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