Ten construction firms are going bust on a daily basis. Almost 6,000 firms have failed in the last two years. Construction continues to be the worst affected industry sector as far as insolvencies are concerned. The causes are not hard to find. Across the industry firms are poorly capitalised especially the largest companies which sublet most of the work. Ever-lengthening payment periods and other unscrupulous devices for wringing more credit and cash out of one's supply chain are now widespread. There is no longer the cushion of bank lending - it has dried up. You know your payer is likely to go bust in a few months time but there's nothing you can do to protect your retention - which, legally, is yours. You cannot use the statutory right of suspension to make a pre-emptive strike.
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