🏗️ Why Real-Time Cost Control Is No Longer Optional for Construction Firms

📉 Construction Insolvency: A Wake-Up Call

In March 2025, construction firms accounted for 18.1% of all insolvencies in England and Wales, according to the Insolvency Service. That’s 377 businesses gone in just one month—a 2.5% increase from February.

To put that in perspective, construction made up only 14% of all registered UK businesses in 2024. Yet it continues to lead the insolvency charts.

Specialised construction services were hit hardest, reaching a seven-month high in insolvencies. Over the 12 months to March 2025, 4,111 construction firms became insolvent—down slightly from the previous year but still 28% higher than pre-pandemic levels.

🛠️ What’s Going Wrong?

From my work supporting SMEs, I’ve seen the same pattern again and again: firms are flying blind. They’re relying on outdated spreadsheets, quarterly reviews, and reactive decision-making.

By the time they realise they’re in trouble, it’s already too late.

💡 My Advice: Make Cost Control a Daily Habit

If you’re running a construction business, you need to know—today—how much you’ve spent, what’s committed, and what’s left in the budget.

That’s where real-time cost control comes in. It’s not just about tracking invoices. It’s about having a live dashboard that shows you exactly where your money is going, project by project.

💰 Cash Flow Control Is Your Lifeline

Cash flow isn’t just a finance team problem—it’s a survival issue.

I always advise clients to treat cash flow like oxygen:

Monitor it constantly.
Forecast it weekly.
Stress-test it monthly.

If you’re not doing that, you’re flying blind.

✅ What You Can Do Now

Automate your cost tracking with tools that integrate with your accounting and project systems.
Set up alerts for budget overruns and delayed payments.
Review cash flow weekly, not monthly.
Train your site managers to flag cost issues early—not after the fact.