Distressed Project Specialists

Unfortunately, the construction industry has seen a sharp rise in company insolvencies. In the year to January 2024, the total number of construction businesses going insolvent was 4,383. This was an increase of 5.9% on the insolvencies recorded in the year to January 2023 and a 36.2% increase on the 3,218 in 2019.

The convergence of multiple issues, from the lingering impacts of COVID-19, geopolitical tensions, and economic challenges such as rapid inflation and energy price hikes have caused the perfect storm for construction businesses. Particularly where a contractor’s emphasis during this period was on chasing turnover, this will have likely led to an overextension and financial fragility of the business. With issues typically manifesting themselves on-site as persistent rumours, significant project delays, supply chain issues, and clear financial strains.

How can Roberts Gallagher Construction help?

As experts in distressed project recovery where the main contractor has gone insolvent, Roberts Gallagher Construction has a proven track record of providing our clients with a roadmap to project completion.

We know that many main contractors in the industry are not interested in the project turnaround space, and we appreciate why, but here at Roberts Gallagher Construction, we have the knowledge and experience to deliver results on projects that need to be brought back to life.

Navigating the unique challenges of distressed project recovery requires a detailed review and assessment of the project status, a practical take on risk, and strong negotiating with stakeholders, warranty providers, subcontractors, and suppliers. Additionally, it requires integrity, trust, and commitment to foster a transparent and collaborative relationship with the client to get the project back on track. 

Whether it be via a single-stage, two-stage or negotiated, Roberts Gallagher Construction has the experience to – 

• Provide a detailed project status report, including planning, design, procurement, health and safety, quality, and handover documentation positions.
• Conduct all surveys, including intrusive surveys as necessary to establish any derogations or workmanship issues.
• Re-engage the previous project supply chain (where commercially efficient), and/or supplement with our trusted supply chain to identify a programme to completion, areas of risk, and the best procurement strategy to complete the project.
• Review all compliance and warranty issues.
• Negotiate price, programme, risk, and contract terms with the client, or the client’s agent.
• Negotiate the same with the supply chain. 
• Prepare a detailed pricing document with relevant supporting survey reports, clarifications, and qualifications to suit a client's desired delivery strategy and contract risk profile.
• Prepare a comprehensive programme to complete the project, including design, procurement, construction, and handover.

If you have a distressed project and you need help, please contact us.