The circumstances that led to the collapse of Westridge Construction Limited have been revealed by the administrators.
The East Sussex company had endured “numerous trading difficulties” prior to going into administration, accountancy firm Crowe UK said.
These included supply chain insolvencies which led to delays and re-engagement costs.
Soaring inflation, leading to higher supplier and subcontractor costs, also took a toll on Westridge’s ability to trade well.
The company suffered from a lack of labour, instability in material availability, and the impact of long-term fixed price contracts during a high inflationary period.
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Westridge had also experienced escalating professional indemnity insurance premiums, which is the cost of compensating a client(s) for loss or damage resulting from “negligent services or advice provided”.
Administrators said there were other contributing factors but provided no further comment at this time.
Established in 1990, Westridge in Catsfield delivered contracting and design and build projects ranging between £1 million and £15 million in various sectors throughout the South East of England, including housing, education, healthcare, leisure and commercial.
It employed in the region of 150 staff, including more than 80 trade technicians.
Construction firms in the UK have gone under at the highest rate in a decade.
Insolvency Service data revealed about 4,280 construction companies in the UK became insolvent in the year to June, a 16.5% increase on the previous recorded year.
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