Contact Info
America House 8b Rumford Court
Liverpool, L3 9DD, UK
+44 (0) 151 236 8674
Follow Us
Construction Insolvency Shifting the Landscape with Project Management Software

Construction Insolvency: Shifting the Landscape with Project Management Software

Construction Insolvency: Shifting the Landscape with Project Management Software

Do you know, of the 275 construction firms that went out of business in the UK in July this year, 156 were smaller companies, according to recent findings by The Insolvency Service.

For the past seven recorded months, the number of construction company insolvencies in the UK has fluctuated but remained high, with peak numbers in March and May before coming down slightly in June and July. 

Construction firms in the UK have gone under at the highest rate in a decade.

Data revealed about 4,280 construction companies in the UK became insolvent in the year to June, a 16.5% increase on the previous recorded year.

The question at hand is how to address insolvency within the construction industry, and the solution lies in adopting project management software.

Construction insolvency refers to the financial distress or inability of a construction company to meet its financial obligations, which can lead to project delays, disputes, and even bankruptcy.

Here’s how project management software like Quantim can impact and help manage construction insolvency:

1. Financial Tracking and Reporting

Project management software often includes financial tracking and reporting features. This helps construction companies monitor their budgets, expenses, and cash flow in real-time


2. Resource Management

Effective resource management is essential in preventing construction insolvency. Project management software allows construction companies to allocate resources efficiently, ensuring that labor, equipment, and materials are used optimally. This prevents overallocation of resources, which can strain finances.

3. Project Planning and Scheduling

Construction projects often have tight schedules and deadlines. Project management software helps in creating realistic project schedules, tracking progress, and identifying potential delays. By adhering to schedules, construction companies can avoid costly delays that may contribute to insolvency.

4. Risk Management

Construction insolvency can result from unforeseen risks and changes in project scope. Project management software enables construction firms to identify, assess, and mitigate risks proactively. This includes monitoring potential contractual disputes, change orders, and supply chain disruptions.


5. Communication and Collaboration

Effective communication among project stakeholders is crucial in preventing insolvency. Project management software facilitates communication by providing a centralised platform for all project-related information, including documents, emails, and updates. 

6. Document Management

Construction projects generate a vast amount of documents, including contracts, drawings, permits, and change orders. Project management software allows for efficient document management, ensuring that all project-related documents are organised, accessible, and up to date. 

7. Cost Control

One of the leading causes of construction insolvency is cost overruns. Project management software helps monitor project costs, compare them to the budget, and track changes in real-time. This allows construction companies to make informed decisions to control costs and avoid financial strain.

8. Reporting and Analytics

Project management software often provides powerful reporting and analytics capabilities. Construction firms can use these features to generate financial reports, performance metrics, and forecasts.


Quantim helps in preventing construction insolvency by providing tools for financial monitoring, resource management, risk mitigation, effective communication, and cost control.

By using Quantim, construction companies can enhance their project management processes, reduce financial risks, and improve their chances of completing projects successfully, thereby avoiding insolvency.

Book Your Demo Now!
Quantim logo

Best Timesheet Software

Try our 30 Days free trial. No Credit Card required. No hidden charges available. Cancel at Anytime.

Post a Comment