Two UK-based construction companies are facing administration, highlighting industry challenges.
- Norwich’s Fourbay Structures filed for administration following financial pressures.
- A day prior, Hodgkinson Builders Limited, from Derby, took similar steps.
- Despite difficulties, Hodgkinson’s brickwork division remains unaffected.
- Industry insiders note rising costs as a major factor.
The construction industry recently observed two more firms moving towards administration, accentuating the ongoing financial difficulties plaguing the sector. On Thursday, Fourbay Structures, a Norwich-based steelwork contractor, filed a notice of intention to appoint an administrator. The filing underscores the severe financial strains these businesses are under.
Just a day earlier, Hodgkinson Builders Limited, the social housing arm of Derby-based contractor Hodgkinson, initiated a similar move. A company spokesperson emphasised that their brickwork division remains wholly unaffected and entirely separate. They are fervently engaging in talks to transfer the social housing component to interested parties, aiming for a favourable resolution.
Fourbay Structures, established in 1993, has been a significant player in the steel construction domain, engaging in projects like the eight-storey Tower Bridge Court in London and the Bedford Police Station, among others. However, the company refrained from responding to queries regarding its present predicament.
Hodgkinson Builders Limited, founded in 2011, employs close to thirty individuals and is believed to work on multiple sites for social housing providers. They cited escalating construction costs and the broader economic climate as pivotal reasons behind their decision to cease operations in the social housing sector.
A spokesperson for Hodgkinson highlighted the lack of government support for smaller contractors despite directives aimed at fostering collaboration with them. They expressed hope, as negotiations with potential new owners of their social housing division might prove fruitful. In light of these challenges, the company maintains that its brickwork division will continue operations unimpeded.
The construction industry’s struggles are highlighted by these administrations, underscoring the need for greater economic support.
