Learn more about the construction companies that have fallen into administration after tough times in 2025
2025 poses its own challenges for the construction industry- the UK economy forecasts modest growth, whilst rising international tensions put strain on supply chains.
16% of companies that filed for administration in 2022 were in the construction industry, dropping to 12% in 2023. 2024 saw high-profile names such as ISG, the UK’s 6th biggest construction firm at the time, folding, with thousands of jobs lost.
Read more about which companies have fallen into administration below.
January
Kaybridge Construction
Redmans Insolvency Services has been appointed as liquidators for the Middlesex-based groundworks, pending approval by creditors.
Kaybridge has been in business since 1972 and works on groundworks, substructures and superstructures across the UK. Their most recent results for the year to August 31 2023 reported a turnover of £30.6m, with a pre-tax loss of £1.5m.
Sheen Lane
The Richmond-based residential developer is expected to file for administration on 11 January.
They had previously delivered over 2,600 residential units and 120,000 sq ft of commercial floorspace across London and the south east, but reported a pre-tax loss of £27m in 2023, which it attributed to write-downs of over £23m on estimated profits on developments completed with or for sister companies.
Connect Modular
60 staff were made redundant at Scottish volumetric house builder Connect Modular, barely six months after the East Ayrshire firm completed its largest ever contract.
Connect Modular, who were first established in 2013 as the Wee House Company, completed the largest modular low-rise affordable housing development in Scotland in the summer of 2024 at the £17m 101 home project in Kilmarnock.
The December internal newsletter called on staff to rally for a final push in 2025 to complete affordable housing projects in the Garnock Valley, Livingston, Penicuik and Clydebank, as well as preparing to start work on Glasgow’s first operational net zero modular housing development.
Liquidators will also oversee the dissolution of related company Hope South West Limited. Both companies ceased trading as of the second week of January and all employees (38 from Connect Modular, 10 from Hope South West) have been made redundant.
FRP Advisory partners Michelle Elliot and Callum Carmichael took control of the Cumnock-based modular housebuilder on 6 January. Michelle Elliot commented: “Connect Modular Limited and Hope South West Limited had built a strong reputation and track record in delivering high quality, affordable modular homes across Scotland.
“Unfortunately, following losses made on a number of historic contracts and rising operational costs, the businesses were facing significant cash flow pressure. Despite the best efforts of the director in exploring alternatives in recent weeks, the cash position deteriorated significantly placing unsustainable pressure on the business.
“We will now focus on marketing the assets for sale and on providing every possible support to the staff for claims to the Redundancy Payments Office and accessing support agencies such as PACE.”
Ashville Aggregates and Concrete
The London-based materials supply and muck away specialists have filed a notice of intention to appoint administrators, leaving the future of around 50 staff in doubt for the New Year.
Clarkebond
2025 started with a shock for Clarkebond’s 140 staff, who were hit with the news that the engineering consultancy was being liquidated.
The 77-year-old firm collapsed a mere three months after it was acquired by the Independent Design House Group (IDHG), who wanted to become a multidisciplinary engineering consultancy for services spread from concept to construction.
But a combination of tripling the workforce overnight and a cultural clash between Clarkebond’s original employees and IDHG’s management led to resignations and redundancies, which threw the company into further turmoil.
