Another Main Contractor fails taking businesses down with it. ISG.

Another month passes, and we’ve just witnessed another seismic event in the construction world with ISG, a major Main Contractor, going into administration. The fallout is already being felt, especially by developers and subcontractors.

Back in June 2023, I was writing about the effect of MidGroup going into administration in July 2022 and unfortunately their demise eventually took down the majority of Click Group. It’s no surprise that if you main contractor goes into Bankrupcy it has the domino effect of taking other businesses with it. Click included. 

Furthermore, in June 2024 ARJ and Geoffrey Osborne filing for administration, and now here we are again with another major player going under. Developers have been left with incomplete jobs, and have know where to turn, and subcontractors are also being hit hard, with unpaid bills and broken promises mounting up.

 It’s a situation we’ve seen too many times before, and it raises an important question:

How do we protect ourselves? the supply chain included? Let’s be realistic: technology alone isn’t a panacea, and it wouldn’t necessarily have saved MidGroup, ISG, ARJ, or Osborne. But if we take a helicopter view, it’s clear that things need to change—and they need to change fast.

I’ve said in talks before, the way Main Contractors engage with their supply chain must evolve, focusing on de-risking procurement and fostering trust, and the funders need to be part of this holistic approach. 

Currently the risk profiles are simply NOT aligned.. 

Funders, Developers and Main Contractors need to have their interests aligned…