Typical situations
- A materials supplier or plant hirer has put the account on stop.
- A main contractor has entered administration or is not paying certified sums.
- Subcontractor claims, retention disputes or contra-charges are absorbing management time and cash.
- A statutory demand or winding-up petition has been served on a contracting company.
Supply-chain pressure hits the site first
When a merchant or hirer stops supply, the immediate damage is operational: delayed sections, liquidated damages risk and a loss of confidence from the employer. That operational risk has to be part of the creditor discussion, not a separate problem to be solved later.
Directors should know which suppliers are critical, which can be replaced, and which debts are already in formal recovery. Paying the loudest account without that map can worsen the position for the rest of the chain.
Main contractor insolvency
If a main contractor fails, subcontractors may face unpaid applications, retention risk and uncertainty about whether to remain on site. The legal position depends on the contract, any step-in rights and whether a new contractor is appointed.
There is also a cash decision: whether the company can fund the hole, and whether continuing on the project improves or damages the outcome. That is a construction-specific version of the wider creditor pressure advice we give to UK companies.
Enforcement still follows the same legal path
A statutory demand or winding-up petition against a construction company is still an enforcement process with a short timetable. The construction context explains why the cash disappeared. It does not extend the deadline.
See our winding-up petition guide for the immediate steps, and the construction hub for the wider turnaround context.
Common questions
Should we keep working if the main contractor has not paid?
That depends on the contract, the amount outstanding, the remaining cost to complete and whether continuing improves recovery. It is a board decision with legal and cash consequences, not only a site decision.
Is this the same as your general creditor pressure page?
No. The general page covers statutory demands, supplier action and petitions for UK companies. This page deals with main contractor insolvency, site-critical suppliers and construction payment disputes.
Related services
Construction cash flow
Deal with retentions, delayed payments, unpaid certified work and working-capital pressure across contracting businesses.
Construction HMRC debt
Address CIS, VAT, PAYE and Time to Pay issues that are specific to contractors and subcontractors.
Construction CVAs
Assess whether a CVA can work for a contractor once bonds, retentions and employer termination clauses are taken into account.
Related insights
What to do if your company receives a winding-up petition
Practical steps for UK company directors after a winding-up petition is threatened or presented, including the effect on bank accounts and the options that may remain.
Construction cash flow, late payment and retentions
How late certificates, pay-less notices and retentions create cash pressure in construction businesses, and what directors should examine first.
