FK Facades and FK Construction have gone into administration after the parent company fell into financial difficulties.<\/p>\n
FK Group \u2013 which focuses on roofing, cladding, glazing and maintenance \u2013 has struggled with delays around the building safety regime, as it lost \u00a35.9 million before tax in the year to 31 March 2024, with turnover dropping 23% year-on-year to \u00a3100.6 million.<\/p>\n
The firm was locked in a legal dispute with investment company Paragon related to remedial works to a roof at a commercial property in Ashton Moss, Greater Manchester. FK Group lost, meaning Paragon was entitled to \u00a380,500 in fees.<\/p>\n
Some 40 jobs have been lost as part of the administration process.<\/p>\n
Dr David Crosthwaite, chief economist at BCIS, said: \u201cThe administrations of FK Group\u2019s Facades and Construction businesses appear to be symptomatic of the simultaneous risks construction businesses face.<\/p>\n
\t <\/p>\n
\u201cBuilding costs are going up, clients want value for money in a tough economy, gateway 2 decision-making is improving but not fast enough and the fallout of ISG\u2019s collapse is still working its way through the system.<\/p>\n
\u201cTogether, these factors are holding SME supplier margins between a rock and a hard place. The collapse of specialist firms like FK Facades shrinks the supplier pool and risks an inflationary impact on associated supplier prices \u2013 in this case, that\u2019s cladding and other external solutions. It\u2019s a vicious cycle.<\/p>\n
\u201cData show insolvencies are still high in construction \u2013 the total in the 12 months to November 2025 was up by 22.6% on 2019 \u2013 and firms providing specialised construction activities consistently comprise the biggest share.<\/p>\n
\u201cBut there are ways forward. Effective collaboration, financial due diligence and risk sharing between all clients and contractors are essential for providing suppliers with a more secure pipeline. It\u2019s giving projects the best possible chance of getting off the ground to sustain suppliers and ensure that capacity and affordability is available.<\/p>\n
\u201cThere\u2019s also a lot to be said for perseverance in poor conditions. Construction was incredibly resilient last year despite rampant uncertainty and macroeconomic constraints. That same resilience will be just as important in 2026.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
FK Facades and FK Construction have gone into administration after the parent company fell into financial difficulties. FK Group \u2013 which focuses on roofing, cladding, glazing and maintenance \u2013 has struggled with delays around the building safety regime, as it lost \u00a35.9 million before tax in the year to 31 March 2024, with turnover dropping […]<\/p>\n","protected":false},"author":1,"featured_media":7664,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-7663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n