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Construction administrations total 21pc of all UK failures

The number of construction firms falling into administration in 2009 fell by 5 per cent compared with 2008, but still accounted for a fifth of all failures in the UK, according to accountancy firm Deloitte.

A total of 683 firms fell into administration in 2009 compared with 716 in 2008, but construction and property administrations accounted for 21 per cent of all the UK’s 3,188 administrations last year.

The fourth quarter of 2009 saw a 17 per cent drop in construction administrations according to Deloitte with 129 compared with 155 in Q3.

Deloitte reorganisation services partner Lee Manning said: “We saw a sharp rise in the number of administrations at the end of 2008 and the beginning of 2009, which reflected the peak of the recession.

“Traditionally in the UK, one of the first sectors to be hit when a recession arises is the property and construction industry.

“In 2008 this sector bore the brunt of administrations, with 716 property and construction companies falling into administration: this figure fell marginally by 5 per cent last year to 683.

“Whilst this reduction is not unexpected, as many of the weaker companies would have collapsed at an early stage of the downturn, property and construction continues to dominate the total percentage of administrations, accounting for 21 per cent of the total figure.“

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