NACF’s Post

Are you also facing the difficult conditions that have led to a record number of Australian construction and hospitality business insolvencies in 2023-24? Debts owed to the ATO are a key factor in the spike and TTJ Advisory could have the solution that saves your business from going to the wall. We want to move the dial on these statistics. This article from the Australian Financial Review reports on the factors driving this concerning trend. The story explains the problem, TTJ Advisory can explain the remedies, so reach out to us before it is too late. https://lnkd.in/gtfuBTs9 #insolvency #DPN #taxdebt #bankruptcy

🔴 There are currently over 700 PFI contracts and the bulk will start to expire from 2025. 🔴 In October 2018, government announced it would no longer use the PFI model. 🔴 Existing PFI contracts remain in place and the earliest ones are now starting to expire. 👉 first in the UK – a restructuring plan under Part 26A to the Companies Act 2006 (Restructuring Plan) has been proposed by a project company in a private finance initiative (PFI) project after a convening hearing was held in the High Court in late May 👉 The Restructuring Plan seeks to compromise both current and future liabilities arising from a PFI project agreement with an NHS Trust. 👉 The hearing to sanction the plan will now be held in July. 👉 If the applicant company is successful, this could create a new pathway in the world of PFI projects, where disputes and deadlocks have become common place. 👉 This is set against a backdrop where PFI disputes have been predicted to soar over the next few years. 👉 In an interview with the Financial Times, Lord Hutton (chair of the Association of Infrastructure Investors in Public Private Partnerships), has indicated “red lights flashing” over 150 or so PFI contracts that will come to an end in the next parliament, making this a very real and very present issue. https://lnkd.in/ed_i9XBb

Big news today in the construction industry as ISG files for administration after difficulties in managing missed invoice payments. A stark reminder the importance of our mission to make business lending easy & accessible to all. #construction #isg #businessfinance #invoicefinance

Why is the solution to every commercial failure more government handouts ? Let's agree if we apply the 80/20 rule 80% of businesses pay their bills, meet their entitlements, do the right thing so the 20% that don't either should be shut down or they fail ...pretty simple. The lazy solution is to demand public money for private enterprise ...Why? Where does it end? And who stupidly doesn't realise all we're doing is making things worse as we keep kicking the can down the road .... ? Come on people enough handouts, bail outs, vouchers, concessions. We want higher wages, lower taxes, free medical, free education, subsidised medicine and that's all fine but let free enterprise trade freely don't keep paying for it in handouts... https://lnkd.in/gnp7pZ4Q

How can you recover payment for a statutory debt under the Building and Construction (Security of Payment) Act 2021 (WA) (SOP Act)? The recent OSB Group Pty Ltd v Complete Hire & Sales Pty Ltd highlights that obtaining summary judgement for a SOP Act ‘statutory debt’ is not a sure thing. An adjudication application may become the preferable alternative. Read the full article, written by Lauren Cook and Matthew Endo to understand how these recent developments may affect debt recovery strategies under the SOP Act, 👉 bit.ly/3ZjdWsD

At over 27%, the construction industry had the largest share of all corporate insolvencies in Australia for the 2023-24 financial year. Available commentary has largely focused on the challenges facing the industry as a whole. As business performance advisors, my colleague #Sumit Khandelia and I were curious to go beyond industry factors and, if possible, identify what aspects of business performance failed in these companies. We analysed a sample of 30 residential building companies that became insolvent between 2022 and 2024, using reports from their administrators. Our conclusion is that internal factors also played a role in the corporate demise of the companies in our sample. Our full report attached. Also available on our website. #businessperformance

Company insolvencies in England and Wales fell sharply in March to 1,815, 17% lower than February this year, the latest official figures show.   These consisted of 1,437 creditors’ voluntary liquidations (CVLs), 261 compulsory liquidations, 108 administrations and 9 company voluntary arrangements (CVAs). Businesses in construction, retail and hospitality have been the most impacted. Numbers of all types of company insolvencies were lower than in both March 2023 and February 2024.   Find out more:   https://lnkd.in/eggaKvMK   #insolvencies #construction #creditinsurance #tradecreditinsurance

#COST #KIE #GFRD #BBY Bit of a bombshell (see below link) dropped last night in the construction industry,  after the UK's 6th largest contractor, ISG (£2bn+ sales) filed for bankruptcy. In turn, impacting its public (prisons, HMRC) & private (Google, data centres) customers, 3,000 employees and 100s of suppliers – albeit the difficulties have been flagged for sometime. Nonetheless this is the biggest blow-up since Carillion in Jan'18 (£6bn+ debts) and once again raises fundamental questions about the contractor business model. The sector is still super competitive - generating wafer thin margins that provide little wiggle room in the event things go wrong. https://lnkd.in/e_sdcjwv

This GT Alert - SBA Proposes Key Changes Impacting Small Business Government Contractors and Mentor-Protégé Joint Ventures is a worthwhile read. #SBA #GTNorthernVirginia #SmallBusinessAdministration

Delighted to be attending the The Joint Contracts Tribunal (JCT) Council Meeting this morning. Reminder that the JCT are about to launch the JCT2024 Contracts soon. “The main features of JCT 2024 include updates and changes corresponding with the following workstreams: • Modernising and streamlining – including adoption of gender neutral language, and increased flexibility around the use of electronic notices. • New for JCT 2024 – the introduction of a new contract family, JCT Target Cost Contract (TCC), comprising main contract, sub-contract, and guide. • Legislative changes – major updates in relation to the Building Safety Act, Termination accounting and payment provisions reflecting the Construction Act, new insolvency grounds reflecting the Corporate Insolvency and Governance Act 2020. • Future proofing – including changes to reflect the objectives of the Construction Playbook, and the incorporation of previously optional supplemental provisions relating to Collaborative Working, and Sustainable Development and Environmental Considerations, into the main document…”. (Extract from JCT website) #excellence #constructionlaw #jctcontracts #jctcouncil #meeting #jct2024 #london #constructionbarrister https://lnkd.in/eRvP_HGi