Counterparty Risk

It is important to note that these links are based on supply chain data and do not necessarily mean the supplier is actively working with the distressed buyer at present. Buyer due diligence and direct engagement with the supplier are recommended before drawing conclusions.

This report tracks all Constructionline members who have formally entered some stage of financial distress in the last 12 months.

• Distress – Companies formally in the dissolution process, confirmed by Gazette or Companies House filings.
• Early Warning – Legal signals such as court filings of Winding-Up Petition Applications (WUPA), Notices of Intention to Appoint Administrators (NOIAA), or unadvertised Winding-Up Petitions (UWUP). These indicate that a company may be entering distress but has not yet formally collapsed.
• Member Voluntary Liquidation (MVL) – Companies that are ceasing to trade through an orderly wind-down and voluntary liquidation.

The report benchmarks:

• Number of firms in distress, segmented over 0–2 months, 3–6 months, and 6–12 months.
• Number of firms receiving early warning indicators over the same timeframes.
• Number of firms entering MVL by timeframe.

These benchmarks are provided both for your supply chain and for the wider Constructionline membership, giving you clear industry context against which to assess your own exposure.

The contagion risk report looks at suppliers in your network who may be exposed through links to distressed buyers.

Key report features:

• Firms linked to buyers in distress by month – highlighting periods of greatest volatility.
• Firms linked to distressed buyers by organisation unit – showing where exposure is concentrated across your projects or business divisions.
• Subcontractor details – supplier-level data including financial health score, turnover, and net worth. Where a subcontractor shows lower resilience (e.g. weaker health score or thin net worth), the impact of a distressed primary contractor may be more severe.
• Contractor status – details of the distressed buyer including company status, type of distress event (e.g. liquidation, administration), and when it occurred.
• Firms Supplier contact details – direct contacts for subcontractors in your supply chain for follow-up and due diligence conversations.

• Apply filters at the top of the 12 Months Contagion Risk dashboard (e.g. organisation unit, project name, distress type) to focus on the suppliers most relevant to your business.
• Cross-reference these findings with the 12 Months Construction Industry Distress report by filtering on distress event period and distress type. This provides a full view of how widespread that type of distress is across the industry.
• Prioritise due diligence on suppliers who appear linked to distressed buyers, particularly where their own financial profile suggests higher vulnerability.

• Buyer due diligence is required before making decisions.
• Direct conversations with subcontractors are essential to understand the actual impact and context of any flagged connections.