The short version
- 3,873 construction firms went insolvent in the 12 months to September 2026.
- That is more than any other industry.
- Staged payments and credit checks are your first defence.
We went through the Insolvency Service's industry tables for the 12 months from October 2025 to September 2026. Construction recorded 3,873 company insolvencies out of 22,880 in total.1 That is 16.9%, and it is the highest figure for any industry.
The annual count has eased since the 2023 peak of 4,389. It remains well above the 3,221 recorded in 2019.1
How to read these numbers
The figures cover England and Wales and are not seasonally adjusted. Recent months are provisional. They count companies only, so sole traders are not included.
Why it matters to smaller firms
When a main contractor fails, the subcontractors below it are usually unsecured creditors. They often get little back. A single failure can bring down a healthy small firm.
Protecting your cash
- Run a credit check before a large job.
- Ask for a deposit or staged payments.
- Check who you are contracting with. Holding companies and trading names differ.
- Keep retention of title wording in your terms for materials.
- Chase invoices early. Statutory interest is there to be used.2
Sources
- Company insolvencies, September 2026, Insolvency Service. Accessed 11 November 2026.
- Late Payment of Commercial Debts (Rate of Interest) (No. 3) Order 2002, article 4, legislation.gov.uk. Accessed 11 November 2026.
General information only. This is not legal, insurance or financial advice. Your own policy wording decides what is covered.