Is your main contractor in trouble? Warning signs for subcontractors

When a main contractor fails, the subcontractors further down the chain usually find out last. They also tend to lose the most: work already done, materials already fitted, and retention money they were waiting for.

It happens more in construction than anywhere else. In the 12 months to August 2026, 3,866 construction companies became insolvent in England and Wales. That was 17% of all cases where the industry was recorded, the most of any industry (Insolvency Service, published 18 September 2026).

You can't prevent a contractor failing. You can often see the warning signs early enough to limit how much you are owed when it happens.

Warning signs you can see yourself

How they pay you

• Payments start arriving later than the contract says, or only after repeated chasing.
• Valuations get cut or disputed more than usual, or payment notices stop arriving.
• You're offered part payments, or asked to accept a later date "just this once".
• Other trades on site mention they are waiting for money too.

What happens on site

• Suppliers stop delivering, or will only deliver cash on delivery.
• Work slows down or stops with no clear reason, or labour disappears from site.
• Staff you deal with leave, or you can't get answers from the office.

On the public register

These are free to check and can't be hidden:

• Accounts overdue at Companies House. A company that can't get its accounts filed on time may be struggling. See overdue accounts as a warning sign.
• A proposal to strike off (the First Gazette notice). The register status shows "Active - Proposal to Strike Off". See strike-off warning signs.
• A winding-up petition. A creditor has asked the court to close the company down. Petitions are advertised in The Gazette. See what a winding-up petition means for your invoice.
• Insolvency filings, or a status of liquidation or administration. By this point the company is already in a formal insolvency process. See administration vs liquidation.

Check before you start the job

Before you agree to work for a new contractor, look them up on the register. The free company check shows the status, overdue filings and insolvency history in a few seconds. If you are pricing work for several contractors, the bulk check covers up to 20 at once.

Take the name from the contract or purchase order, not the sign on the van. A trading name may belong to a company with a different legal name. The company registration number guide explains how to find the right one.

What you can do if you see the signs

• Chase what you are owed now. Being paid before a company enters formal insolvency is far better than waiting. One exception: once a winding-up petition has been presented, payments the company makes can later be declared void (section 127 explained). After it enters liquidation or administration, you normally become one of many unsecured creditors. Unsecured creditors are paid only if there is money left after the costs of the insolvency, secured creditors and preferential creditors (such as some money owed to employees and HMRC), and often get little or nothing back (GOV.UK, "What to do when an insolvent company or bankrupt person owes you money").
• Think before you start the next phase. The more work you do on credit, the more you stand to lose.
• Know your right to suspend work. For most construction contracts, the Housing Grants, Construction and Regeneration Act 1996 gives you the right to suspend work if you are not paid a sum due by the final date for payment. You must first give at least seven days' notice of your intention to suspend, stating the grounds (section 112).
• Check your contract. Look for retention terms, retention of title on materials, and termination rights, and take advice before you rely on them.

This guide is general information, not legal advice. For a specific contract or a large amount of money, talk to a solicitor or a construction claims adviser.

Let the register watch them for you

Checking contractors by hand once is easy. Remembering to check again every week for every contractor is not. FilingPing watches the companies you choose on the Companies House register and emails you when one shows a warning sign: accounts overdue, a strike-off notice, insolvency filings, or a move into liquidation or administration. See FilingPing for construction. You can watch up to 5 companies free.

Sources

• Insolvency Service, Company Insolvency Statistics August 2026, commentary (gov.uk, published 18 September 2026).
• Housing Grants, Construction and Regeneration Act 1996, section 112 (legislation.gov.uk).
• GOV.UK, "What to do when an insolvent company or bankrupt person owes you money" (last updated 9 January 2025).

Updated 1 October 2026 · All guides