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Subcontractors owed £4.6m after Howard Russell collapse

Construction Enquirer

An update on the administration filed at Companies House said the firm was sunk by a combination of rising materials costs, project delays and defect liability claims. It also detailed the level of debts with 208 unsecured creditors left holding unpaid invoices.

Debt 72
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Key Financial & Safety Metrics for Subcontractor Qualification 

Autodesk Construction Cloud

Formula: (Cash and Cash Equivalents + Marketable Securities + Accounts Receivables) / Current Liabilities . Like the Quick Ratio, Current Ratio measures a company’s ability to pay off its short-term liabilities with its current assets. Formula: Current Assets / Liabilities . FINANCIAL RATIOS: DEBT . Debt Ratio .

Safety 94
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Types of Capital for Construction Businesses

Levelset

Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. For most businesses, working capital will be front of mind, but debt capital and equity capital serve important purposes as well. Debt capital. 3 types of capital for construction. Working capital.

Debt 97
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Supply chain owed £3.8m after collapse of London builder

Construction Enquirer

Suppliers left holding unpaid invoices are unlikely to receive a penny for their debts. Its civils arm MEC Groundworks also went into liquidation owing more than £100,000 to unsecured creditors. The firm was founded in 2007 by two ex-employees of Bovis Lend Lease – Barry O’Sullivan and Dennis Bernard who left the business three years ago.

Debt 79
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Green Buildings are Subsidizing Conventional Buildings Stymying Climate Progress

Green Building Law Update

Green buildings are less risky, more profitable, with higher appraised value than conventional buildings that results in higher company creditworthiness, measuring the reduced likelihood of it defaulting on its debt, but today, green building does not receive a commensurate lower interest rate on its debt.

Green 293
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The Impact of ASC 842 – The New Lease Standard Is Here

Construction Business Owner

Going forward there will be a long-term asset offset by a current liability and a long-term liability. Existing debt covenant calculations may need to be amended as a result of the implementation of the new lease standard. This requirement is FASB aiming for better transparency into the financial positions of companies.

Leases 177
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Precast cladding contractor goes into administration

Construction Enquirer

Interpath said the firm had been hit by “wider group cashflow pressures and cross guarantees” which “ultimately resulted in additional liabilities arising and no access to ongoing funding.” For more information and to benefit from the Enquirer discount click here.