Construction Insolvency Analysis

New research produced by Kingsway gives an insight into construction industry insolvencies.

The report covers the period from 2009-1010 and examines the amount of money lost in construction insolvencies.

The research is based on recently released data from ASIC

Click here to download the full report.

Key Findings

1,905  the number of construction industry insolvencies in 2009/2010

24%  the percentage of all insolvencies that are in the construction sector

54%  the percentage of Australian construction insolvencies that occur in NSW

$ 2.5 billion the estimated amount of money lost by unsecured creditors in 
construction related insolvencies annually.

1.    Poor strategic management of business.

2.    Inadequate cash flow or high cash use.

3.    Poor financial control including lack of records.

4.    Poor economic conditions.

5.    Under capitalisation.

The five most commonly reported reasons for corporate failure in the construction sector.

Zero        the likely return to unsecured creditors in the event of

a building company collapse

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