Construction Debt Recovery
The phrase: ‘Turnover is vanity, profit is sanity but cash flow is king’, is as true today as it was when it was first coined. Your business may have a healthy order book and on paper the projects are profitable, but what happens if payment is slow or not forthcoming?
Michael Gerard Solicitors can help you recover unpaid business debts and get back what is rightfully yours. Our service applies to all those allied to the construction industry, and we have an excellent record in this area.
Construction debt a major issue for the industry
Worryingly, a recent report exposed that subcontractors are writing off an enormous £2.8bn in bad debts every year. These stats, from research conducted by Bibby Financial Services, also highlighted that 60% of subcontractors have suffered from bad debt in the last 12 months, with the average firm writing off £16,149 each year.
This lack of payment to construction firms can have devastating effects; placing strain on construction and engineering businesses and even causing some to fold.
Understanding construction debt
One of the biggest reasons construction debt arises is the sheer complexity of construction contracts, which can lead to businesses not being paid enough or not paid at all.
Recovering what you are owed by customers can be difficult to achieve whilst also trying to run your engineering or construction business. That’s why turning to a construction solicitor can be the best solution as they will have the time, expertise and resources needed for the job.
The debt recovery process
Every debt recovery case requires an individual approach which must be tailored to the circumstances. Michael Gerard Solicitors uses a range of techniques including demand letters, letters of claim, statutory demands, High Court enforcement and well-worded letters!
The key to successful construction debt recovery is acting quickly, so get in touch today to discuss your case. Once we’ve discussed the situation with you and obtained the relevant documentation, we can prepare a case and carry out initial investigations. From there we will be in contact with the debtor to try and settle the case without need for legal action through engaging with them and making demands for the payment of the debts. If the debt is still not repaid through these methods, we can then advise on legal proceedings.