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An Update on Insolvency in the Australian Construction Industry

August 2022 White Paper

The construction sector in Australia has long been affected by insolvency and broader liquidity issues. In the last year, construction companies accounted for 26% of businesses that entered into insolvency, and insolvencies in the construction sector more than doubled. This year, contractors have been further squeezed by inflation, supply chain issues and labour market shortages. As the federal government has wound back its COVID-19 economic stimulus packages, further collapses seem inevitable.

In this White Paper, we set out the reasons for why the construction industry is particularly vulnerable to insolvency issues, outline the risks and red flags that owners, principals and head contractors should be aware of, and discuss how these risks can be managed.

Read the White Paper here.

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