Close Menu
UK Liquidators

Construction business liquidation advice

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

How to liquidate your construction business

The construction industry is facing a raft of headwinds that are pushing firms into critical levels of financial distress and taking their toll on the embattled sector. 

If you are worried about the financial health of your construction business, you should seek urgent liquidation and company rescue advice from a licensed insolvency practitioner. They will be able to assess your financial position and provide professional guidance about the best way forward. 

Why have construction businesses been so badly affected?

Several challenges are making life difficult for construction firms and smaller businesses, particularly, are feeling the strain. Inflation and rising interest rates are driving up the cost of materials and borrowing, while supply chain issues and staffing shortages are causing high levels of uncertainty. 

There’s also a bad debt problem in the construction industry, with around £300 million of unpaid invoices, which could rise to £1 billion by the end of the year. With construction companies living and dying on their cash flow, bad debts and late payments can quickly push businesses into crisis. 

If your construction business is struggling, seeking professional advice early will give you the greatest chance of recovery. Restructuring your debt or streamlining and simplifying the business could allow you to continue to trade. Alternatively, if the business is no longer viable, liquidation is likely to be the best course of action.  

Liquidation advice for the construction sector

No company director will welcome the prospect of closing a business they have worked so hard to grow, but in certain circumstances, voluntary liquidation is the right option. 

A Creditors’ Voluntary Liquidation (CVL) will bring your business to an end in line with the relevant insolvency laws. It will also help to protect you from the potentially serious repercussions of continuing to trade an insolvent business that subsequently fails. 

At UK Liquidators, we will assess your financial position and present you with the best options. If a CVL is right for your business, we will explain the process to you so you can proceed with confidence.

Worried about your Bounce Back Loan?

If you are a limited company director worried about how you are going to repay your Bounce Back Loan, we are here to help. As licensed insolvency practitioners we can talk you through your options when it comes to repaying your outstanding Bounce Back Loan, as well as handling all negotiations with creditors on your behalf. Call our team today on 0800 063 9262 .

Creditors’ Voluntary Liquidation for construction businesses

A Creditors’ Voluntary Liquidation is a formal procedure you instigate as a company director. You decide when to put the company into liquidation and which insolvency practitioner you want to act as the liquidator. 

The liquidator will identify and value the company’s assets before selling them at auction to raise money to distribute to your creditors. Any remaining debts will be written off. You will not be personally liable for company debts unless you have signed a personal guarantee or been involved in wrongful trading.  

Claiming director redundancy pay following liquidation

One often overlooked aspect of liquidation is that you could claim company director redundancy pay, which averages around £10,000. You will be eligible if you:

  • Worked for the company under a contract of employment (written, oral or implied) for at least two years
  • Have taken a regular salary through PAYE
  • Worked at least 16 hours a week
  • Fulfilled a role that was more than advisory
  • Are owed money by the company (for example, your initial investment or an unpaid salary)

You can use your director’s redundancy pay to meet the cost of the liquidation if your company assets do not cover the liquidator’s fee. It can also help you prepare for the next step in your career. 

Rescuing construction businesses in financial distress

If your construction company is struggling financially, liquidation may not be your only option. If your business model is still viable, there could be steps you can take to save your company.  

Our experienced team of insolvency practitioners will identify rescue and recovery measures that are appropriate. This could include a Company Voluntary Arrangement (CVA), which allows you to continue to trade and repay your creditors over time. 

Alternatively, it might be possible to restructure your business via a Company Administration, so you can continue trading without the unprofitable elements of your business that are causing your financial decline.

Start your online liquidation today

If you have decided liquidation is the right option for your limited company, you can take the first step and begin the process online using our online portal. Starting the process is quick, simple, and can be done at a time that suits you. Your information will be submitted to your local UK Liquidators insolvency practitioner who will be with you every step of the way. Click here to start your company’s liquidation online.

Need advice?

For trustworthy company rescue and liquidation advice for your construction business, please contact our partner-led team. Call us for a free, same-day phone consultation or arrange a face-to-face consultation at one of our 100+ offices throughout the UK.

Jonathan Munnery
Insolvency & Restructuring Expert

If you are considering liquidation for your limited company, taking advice from a licensed insolvency practitioner can help you understand your options.

Is liquidation the right option for you?

Take our 60 second test and find out

Company health risk assessment
Types of liquidation available
Alternatives to liquidation
Understand your next steps
60 Second Liquidation Test
Pages related to How to liquidate your construction business
Line of cars up for sale
Automotive business liquidation advice
An Empty Bar
Bars and restaurants business liquidation advice
Builders on a construction site
Construction business liquidation advice
Did you know?
Are you eligible to claim Director Redundancy?
As a Limited Company Director you may be entitled to claim Director Redundancy - Average UK claim is £9,000*.
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

100% Free & Confidential Advice

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY